Purpose

This paper analyses the relationship between financial sector development (FSD) and life insurance inclusion in India during the period from 1971–1972 to 2016–2017. The study analyses the effect of financial deepening on life insurance inclusion in India.

Design/methodology/approach

The study employs augmented Dickey–Fuller (ADF) unit roots test to check the stationarity properties of the time series data. It estimates a life insurance inclusion model using the auto-regressive distributed lag model (ARDL) bounds testing approach to cointegration.

Findings

The study finds evidence of a cointegrating relationship between financial deepening and life insurance inclusion in India. A significant error correction coefficient indicates automatic adjustments to short-run disequilibrium, reinforcing the cointegrating relationship between financial sector and life insurance inclusion.

Research limitations/implications

A major limitation of the study is that it excludes the first-time sum assured (FSA) contributed by the private sector life insurance companies due to lack of data availability.

Practical implications

The results of the study call for faster expansion of the financial sector and provision of a low interest rate regime in the Indian economy. The study invokes the need for sufficient training to the personnel in the banking and non-banking institutions to cater to the complex needs of life insurance buyers.

Originality/value

The paper estimates the link between FSD and life insurance inclusion and introduces a new measure of life insurance demand, the life insurance inclusion, measured using the FSA.

中文翻译：

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印度的金融部门发展和人寿保险纳入：ARDL界限测试方法

目的

本文分析了1971–1972年至2016–2017年期间印度金融业发展（FSD）与人寿保险包容性之间的关系。该研究分析了金融深化对印度人寿保险包容性的影响。

设计/方法/方法

该研究采用增强的Dickey-Fuller（ADF）单位根检验来检查时间序列数据的平稳性。它使用自回归分布滞后模型（ARDL）边界测试方法对协整估计了人寿保险包含模型。

发现

该研究发现了印度金融深化与人寿保险纳入之间的协整关系的证据。显着的误差校正系数表明可以自动调整短期失衡，从而加强了金融部门与人寿保险包含在内的协整关系。

研究局限/意义

该研究的主要局限性在于，由于缺乏数据可用性，它不包括私营部门人寿保险公司提供的首次投保额（FSA）。

实际影响

该研究的结果要求更快地扩大金融部门，并在印度经济中提供低利率制度。该研究提出需要对银行和非银行机构的人员进行充分的培训，以满足人寿保险购买者的复杂需求。

创意/价值

本文估计了FSD与人寿保险包含物之间的联系，并介绍了一种新的人寿保险需求量度，即使用FSA衡量的人寿保险包含物。