Social & Demographic Determinants of Insurance Buying Decisions in Sri Lanka

Abstract

Life insurance plays important role in the financial lives of an individual. When more people think about the risk that they have to meet they are more likely to go with life insurance. But in Sri Lankan context, there is factors need to be identified in case of life insurance. When considering about the general insurance since the legislation rules people adhere to it very much. But it is not regarded with the life insurance. This dissertation has examined the social and demographic factors effect on the insurance purchase decisions of the people in Sri Lanka with reference to Gampaha district. Theoretical works as well as empirical evidences have shown how the insurance is deviating in different countries, regions in accordance with the changes in various factors like economic, institutional, social and demographic. The study was only concerned social and demographic factors such as age, gender, income, marital status, education, occupation and family size. Descriptive statistic is used to identify and compare the changes of the different categories of variables.  The Chi-Square testing was used to identify the significant of each variable for life insurance. Through the results found out with the study it can be concluded that there is a significant influence by social and demographic variables to the insurance buying decision in Gampaha district. But the gender is insignificantly affected on buying decision. With those findings all the alternative hypothesis could be accepted other than the gender