The Effect of Human Capital, Assets, and Social Interactions onLife Insurance Demand (Case Study: Branches of Iran Insurance Company, Tehran, Iran)

Abstract

This article aims to study the effect of human capital, assets, and social interactions on life insurance demand in Iran. An applied survey was performed. The statistical population consisted of individuals who used insurance services of Iran Insurance Company in Tehran, Iran. Since the exact number of members was not clear in statistical population, it was considered infinite. Therefore, the sample size consisted of 384 using Morgan table. In order to enhance the reliability, a total of 454 individuals, however, entered the study. Simple random sampling method was employed. A researcher-made questionnaire was administered. The validity was verified by experts. The reliability was reported 0.82 byCronbach’s Alpha test. Descriptive and inferential statistics was employed to analyze the data and Structural Equation Modeling (SEM) was used. SPSS and SmartPLS softwares were also employed. Findings show that human capital is not effective in life insurance demand. Other factors including assets and social interaction have a positive and direct effect on life insurance demand.