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CONCLUSIONS ANDRECOMMENDATIONS6.Introduction:This chapters aims to present the total overview ofthe study by highlighting the basic findings of the analysis and contain somerecommendations for future researchers. Thus, conclusion of overall researchand its findings are represented in first part of this chapter. A section twoof the study highlights some recommendations. Lastly, section three highlightssome limitations of study while in section forth some recommendations forfuture researchers are given6.

1. ConclusionsThis paper empirically examined the relationship thedeterminants of life insurance demand in Pakistan by applying ARDL technique ontime series data from 1987 to 2016. To achieve the main objective of study, thegiven hypotheses were tested. Thus, the following conclusions are drawn basedon findings of the analysis on determinants of life insurance demand. It is found that gross saving has significantlypositive infuence on demand for life insurance which supports the hypothesis.It means that with rises of saving, people can afford to buy insurance From analysis of data it is made clear that inflationis the least important determinant that effect the demand for life insurance. Likethe hypothesis, the results showed inflation and Life insurance demand aresignificantly negative related.

It means that when inflation becomes high, ittends to discourage people from buying life insurance policies for cannotafford to pay the cost of life insurance which results in a downfall of lifeinsurance sales.It is also found that there is a significant positiverelationship between level of education and demand for life insurance as wasthe hypothesized. It means that people with more education are more aware ofimportance of life insurance which tends to increase the demand of lifeinsurance which concluded that education is also the determinants of lifeinsurance demand in Pakistan.It is found that price of life insurance hassignificant negative influence on demand of life insurance and proves thehypothesis. It means that with high price of life insurance the demand for lifeinsurance decreases by people. The study also found that crude death rate haspositive significant influence on life insurance demand, and it has beencleared that the life insurance industry improved with high crude death rate inPakistan. 6.2.

Recommendations:Following are some recommendations for the promotionand expansion of life insurance market in Pakistan.·        As it has been made clear from the resultsthat gross saving is the main determinant of life insurance demand and we knowthat saving is the part of income, therefore he government has to increase theincome by many ways such as through fiscal policy by reducing the taxes onpersonal income and government can create the best set of incentives foremployers to encourage them to increase their working hours which will beincrease their income and thus will motivate them to save more. Theseincentives may be reward incentives like bonuses and appreciation incentivesfor workers which will leads to increase gross saving in Pakistan and thus willincrease the demand for life insurance to make the future more secure.·        The government must give more importanceto decline the level of inflation, government can reduce the level of inflationthrough proper economic mechanism such as through monetary policies, tightfiscal policy and supply-side policy. For maintain the inflation level in countrythe most essential tool is monetary policy by increasing interest rates. This will increase the cost of borrowing and willdiscourages spending which tend to lower economic growth and lower inflation.Other method to reduce inflation level is demand side by reducing the aggregatedemand either by increasing the tax on income or reduce the government whichwill leads to reduce the growth and will lower the inflation. Other way toreduce inflation can be supply sidepolicies in lung run through privatization and disregulation the firms in orderto rise the competitiveness and productivity.

Thus, the supply-side mayleads to lower inflation.·        The positive significant relationshipbetween level of education and life insurance demand indicates that life insurancecompanies should have to focus more on increasing the awareness about lifeinsurance to the general-public. Thus, the activated banks for life insuranceand the managements of insurance companies can furtherly increase the awarenessof general-public and financial literacy through many methods. For example, byusing media, internet and billboard as intermediate of promotion of the lifeinsurance market and by making programs regarding life insurance importance,the government have to clear picture to society that the life insurance isessential for their family in term of saving extra in case of any futureuncertainty such health, education and job misfortunes.·        As the prices of life insurance depends onmany risk factors among which age size of life insurance, occupation andpre-existing health condition of policyholders are the important conditions fordetermining price of life insurance.

The rates for life insurance varies forsmokers and nonsmokers because the health condition of smokers is poor theyhave higher risk of death. Efforts should be made by government to control smokingso that the price of life insurance may not increase. These risks factorsaffect the cost of life insurance which in return increase the price of lifeinsurance. Therefore, the life insurance policy should be buy in younger agewith healthy condition for small size term of policy to get the targeted salesof life insurance business in Pakistan. ·        The government of Pakistan has to make theefforts to reduce the political instability and must have to control theterrorism to increase the life insurance business in Pakistan.·        Regulatory bodies of the life insurancearea especially all activated banks for life insurance help an important rolein progress of life insurance sector. Customers trust and awareness canincrease the demand for life insurance which can be develop Through thedistribution channel of bancassurance. as this sector have a great importancefor the economy of Pakistan that’s why all banks must give more attention to theadvancement of the sector.

6.3. Limitations Of Study:    Oneof major limitation of this research study is small number of insurance dataset. The life insurance data prior to 1985 were not available, therefore,restricting the annual sample size to 29 (from 1987-2016). Because the time isnot substantially long, therefore the results of small sample may be bias.Another main problem in this study has been inconsistent of data from differentinstitutions.

The data obtained from the annual reports of the state life insurancehave even different figures for the same year. Life insurance penetration datawas available from 1990 that’s why this study used the interpolates the data oflife insurance penetration Moreover, lack 

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