Please use this identifier to cite or link to this item: https://scholar.utcc.ac.th/handle/6626976254/4009
Title: Factors Influencing Life Insurance Premiums Receipt in Thailand
Authors: Ratanapraneatchai, Permsak 
Issue Date: 1992
Publisher: University of the Thai Chamber of Commerce
Source: Permsak Ratanapraneatchai (1992) Factors Influencing Life Insurance Premiums Receipt in Thailand.
Abstract: Life insurance industry in Thailand has been considered a financial institution that plays a significant role in Economic Development. Because it is a source of effective long-term investment funds for either Industrial or Agricultural sectors. On the other hand, life insurance has impacts on way of living.Because it is a savings instrument which savers can use to plan for economic protection due to unexpected loss of breadwinner, therefore, the growth of life insurance industry is significant for living security and Economic Development. Life insurance is a financial institution that receives saving deposits in terms of premiums. The amount of premiums received has increased rapidly in recent years and is going to increase at a higher rate in the near future. The aim of this thesis is, therefore, to study factors affecting the movement of premiums received in life insurance industry in Thailand. The findings may be useful for both government and private sectors to develop long-term planing and policy making which correspond to management objectives of life insurance industry efficiently. The study sets hypothesis that there are 14 factors that influence the change of premium received. The outside factor are composed of Household Savings, Disposable Personal Income, GDP Per Capita, GDP Growth Rate, Fixed Deposits Real Interest Rate, Tax Deductible, Attitude toward life insurance, Number of population in Urban Area and Inflation Rate. The rest are inside factors, i.e. Death Claims per Capita, Number of Branch Offices, Number of Sales Agents, Life Insurance policy Dividends and Amount of Advertising Expenses. While assuming other factors are fixed, those factors would be considered independent variable. The data of amount of premiums received during 1970-1990 was analyzed by correlation model, which shows that there are four factors influencing on amount of premium received, i.e. Commercial Bank's Fixed Deposits Real Interest Rate(x6), Death Claim Per Capita(x8), Number of Sales Agents(x11) and Inflation Rate(x14). When using Multiple Regression Model analyzing independent variables with hypothesis of Significant T at 0.10 we found that probability of Significant T those four factors is within the limit of rejection that those four factors are not influent on amount of premiums received. It is, therefore, accepted that that Fixed Deposits Real Interest rate, Death Claim Per Capita, Number of Sales Agents and Inflation Rate are influent on the amount of premiums received. The result of analyzing regression coefficient of Fixed Deposits Real Interest Rate equals -111.49023 which means that the interest rate is reversely related to amount of premiums received will increase 111.49 million bath because the decrease of interest rate does not motivate people to deposit with commercial banks. People will seek other ways of savings which are more secured. The life insurance is another institution which provides protection and saving in the same time in which increase of amount of premiums received. The regression coefficient of Death Claim Per Capita equals 598.24907 which means that the Death Claim Per Capita relates directly to dependent variable. If the amount of Death Claim Per Capita changes 1 million baht, the amount of premium received will change 598.25 million baht. The finding means that the payment of life Insurance Death Claim could motivate the prospect to buy life insurance policies and increase amount of premiums received. The regression coefficient of Death Claim Per Capita equals 598.24907 which means that the Death Claim per Capita relates directly to dependent variable.If the amount of Death Claim Per Capita changes 1 million baht.The finding means that the payment of life insurance Death Claim could motivate the prospect to buy life insurance policies and increase amount of premiums received. The regression coefficient of Number of Sales Agents 0.38561 which means that the Number of Sales Agents relates to dependent variable at the same direction. If Number of Sales Agents increase 1 person,the amount of premiums received will increase 0.39 million baht.The increase of Number of Sales Agents,therefore,affects the increase of life insurance received. The regression coefficient of Inflation Rate equals -116.48855 which means that the Inflation Rate relates negatively to amount of premiums received. If the Inflation Rate decrease 1 percent the amount of premiums received will increase 116.49 million baht. When inflation increase, the people will have more purchasing power to buy necessities as well as life insurance which affects the increase of premiums received. All regression coefficients were calculated at 90% confidence level, which follows the Regression Model.
URI: https://scholar.utcc.ac.th/handle/6626976254/4009
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Appears in Collections:GS: Theses / Independent Studies

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