Written work related report

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Subject : The Need for Life Insurance : A Comprehensive Time-Series Analysis

The report is mainly focused on the structural time series model as it is applied as a means of portraying the structural behavior of life insurance demand . The study is focused on the impact of selected variables including the price level , revenue , interest rate , seemingly perpetual joblessness and population on life insurance demand

Problem

The importance of life insurance companies has increased significantly over the past several years . However , despite this remarkable rise there is little

that is known about the structural behavior of the demand for the products and services offered by life insurance companies , and what external factors drive this demand . The problem of this study aims to tackle is the behavior of life insurance demand within a period of deregulation and reform that is existing within the industry , also exploring the relationship between demand and a specified set of explanatory variables over this time

Feasibility

This project has the prospect of being highly feasible . Although there is very little research with regards to life insurance there are extant research conducted pertaining to life insurance and other kinds of insurance in other regions of the world (e .g . Southeast Asia ) that is similar in several aspects to our study . Aside from this , the proponents of this research are leaders in the field of life insurance and as such their study is heavily grounded on years of experience and knowledge in the field . This shows the feasibility of such an endeavor

Audience

The primary audience for this market study may be useful in assisting life insurance companies in the various facets that comprise their current corporate strategy for Life insurance . One of the cases that this can be applied is for the case of seasonal issues

Secondly , this research and similar research in this area can be of interest to other institutions that are similarly involved in life insurance . For example , it might be useful to generalize the results of the comparison of forecasting models to other categories of financial intermediaries such as banks and monetary agencies providing aid in life insurance issues

s to investigate

This report intends to examine clearly the following areas pertinent to Life Insurance

Provide a very innovative perspective to the study of life insurance demand

Determine the relationship between the cyclical and trend components of demand and the specified set of economic variables affecting life insurance

Determine whether insurance demand is stochastic using an singular variation model

Determine if life insurance demand has a deterministic seasonal component to it existing within the first quarter of each year of the sample period and a relative fall during the fourth quarter of the year

Utilize a seemingly unrelated time series model in to test for the presence of common factors

Investigate the forecasting power of the singular variation model when it is opposed to the multivariate model that includes explanatory variables

Methods /Procedure

In an effort to provide an original...