Factors Influencing Life Insurance Consumption in Malaysia

Abstract

This studyanalyse on the factors influencing life insurance consumption of private life insurance companies. Insurance is an important risk management method to eliminate the worry on high medical fees, debt cancellation, income protection and retirement funding. Policyholders aregenerally concernon policy features and trust on insurance agent as well as the insurance company itself whey they decided to sign up for an insurance policy. The importance of this research is to increase the awareness of life insurance to public. Malaysian Central Bank had published an analysis that showed only 50% of Malaysian population bought a life insurance. This is considered a large gap to achieve Vision 2020 that set to reach insurance penetration rate up to 75%. The study was illustrative in simple random sampling method using questionnaires. The result indicated that the trust on insurance company, trust on insurance agent, and efficiency on claim settlement are mostly influenced the life insurance consumption.