Research Article Open Access

A Multinomial Logit Based Evaluation of the Behavior of the Life Insureds in Romania

Cristian Dragos1 and Simona Dragos1
  • 1 Teodor Mihali Street, Nr. 58-60, S.231, 400591, Cluj Napoca, Romania

Abstract

The Romanian life insurance market is in full expansion. There exists competition between insurance companies as well as between different products of the same company. In this article we describe a study using data that we collected from clients of a Romanian insurance company. We have observed two types of variables: attributes of the insurance products (e.g., profitability, risk), as well as characteristics of the individuals (e.g., sex, age, income). Using elements of economic theory and a multinomial logit model we explain the behavior of the life insureds. We estimate the variations in the market shares of life insurance products using marginal effects. The variations are due to possible changes in the values of some attributes or characteristics.

American Journal of Applied Sciences
Volume 6 No. 1, 2009, 124-129

DOI: https://doi.org/10.3844/ajassp.2009.124.129

Submitted On: 15 March 2008 Published On: 31 January 2009

How to Cite: Dragos, C. & Dragos, S. (2009). A Multinomial Logit Based Evaluation of the Behavior of the Life Insureds in Romania . American Journal of Applied Sciences, 6(1), 124-129. https://doi.org/10.3844/ajassp.2009.124.129

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Keywords

  • Life insurance demand
  • multinomial logit