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WHO CHOOSES THE DIFFERENT VOLUNTARY INSURANCE TYPES: ECONOMETRIC ANALYSIS

T. G. Sinyavskaya, A. A. Tregubova, A. A. Rudyaga, E. P. Kokina

First published: 2019https://doi.org/10.5593/SWS.ISCSS.2019.1/S03.069View metrics

Abstract

In the paper we investigate the insurance behavior of Russians in terms of the determinants of different types of individual voluntary insurance’s choice. Dataset used is Individual Russia Longitudinal Monitoring Survey – Higher School of Economics (RLMS-HSE) Round 26, 2017. Sample includes 10 318 individuals and contains individual data augmented with their households information. Survey is representative for Russia. We estimated logit model for the life and accident insurance and biprobit models for motor insurance (under condition of having a vehicle), apartment insurance (under condition of apartment ownership), and country house insurance (under condition of having one). We revealed that considered factors have different effects on various types of individual voluntary insurance choice. Thus there is a difference in effects of age, sex, household size, marital status, education level, religion, settlement type, attempts to start own business, and another financial behavior types such as loans, savings, savings at interest and money lending. The identical effect on all insurance behavior types has the life satisfaction level and households income. Individuals from a highest income group have the best chances of having the voluntary insurance policies. Hence we confirmed that separated analyses of the demand for different types of voluntary insurance allow us to reveal the differences between the determinants of individual’s insurance strategies. Our results show that formally voluntary insurance types are not always individual voluntary choice. Insurance for Russians is not a risk management method. It is either forced decision (equivalent of imputed insurance) or just another financial behavior type available for higher income groups.

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Title
WHO CHOOSES THE DIFFERENT VOLUNTARY INSURANCE TYPES: ECONOMETRIC ANALYSIS
Authors
T. G. Sinyavskaya, A. A. Tregubova, A. A. Rudyaga, E. P. Kokina
Proceedings
6th SWS International Scientific Conference on Social Sciences ISCSS 2019
Publisher
STEF92 Technology
Year
2019
Pages
531-538
SWS Citekey
Sinyavskaya20193531538
ISSN
2682-9959
ISBN
978-619-7408-91-1
Language
en
Publication type
Proceedings Paper
Keywords
insurance behaviorvoluntary insurancetypes of individual voluntary insurancebiprobit modellogit modellogit model.
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