This study analyzes the growth of life insurance premiums in the gross domestic product (GDP) under inflation risk and compares this growth for Indonesia and Philippines using life insurance premiums-to-GDP and inflation data from 1990 to 2015. The sample was assembled through proportional sampling, and the data analysis consisted of descriptive statistics and a correlation test. Based on time-series charts, life insurance premiums in Indonesia’s GDP are found to be lower than those of the Philippines, although this has fluctuated over the last 25 years. The correlation test results show that inflation has a negative effect on life insurance premiums. In the Philippines, inflation risks have an effect on life insurance premiums, with a considerable correlation value of −0.6837. In other words, rising inflation in the Philippines significantly reduces the value of life insurance premiums in GDP. This is different from Indonesia, where there is no significant influence of inflation on the life insurance premium with a correlation value of −0.2531. This is because the penetration of insurance (as percent premium to GDP) in Indonesian society is relatively small compared with the Philippines.
|Advances in Social Science, Education and Humanities Research
|3rd International Conference on Vocational Higher Education (ICVHE 2018)
|2/08/18 → 4/08/18
- life insurance
- gross domestic product