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This chapters aims to present the total overview of
the study by highlighting the basic findings of the analysis and contain some
recommendations for future researchers. Thus, conclusion of overall research
and its findings are represented in first part of this chapter. A section two
of the study highlights some recommendations. Lastly, section three highlights
some limitations of study while in section forth some recommendations for
future researchers are given

6.1. Conclusions

This paper empirically examined the relationship the
determinants of life insurance demand in Pakistan by applying ARDL technique on
time series data from 1987 to 2016. To achieve the main objective of study, the
given hypotheses were tested. Thus, the following conclusions are drawn based
on findings of the analysis on determinants of life insurance demand.

It is found that gross saving has significantly
positive 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 inflation
is the least important determinant that effect the demand for life insurance. Like
the hypothesis, the results showed inflation and Life insurance demand are
significantly negative related. It means that when inflation becomes high, it
tends to discourage people from buying life insurance policies for cannot
afford to pay the cost of life insurance which results in a downfall of life
insurance sales.

It is also found that there is a significant positive
relationship between level of education and demand for life insurance as was
the hypothesized. It means that people with more education are more aware of
importance of life insurance which tends to increase the demand of life
insurance which concluded that education is also the determinants of life
insurance demand in Pakistan.

It is found that price of life insurance has
significant negative influence on demand of life insurance and proves the
hypothesis. It means that with high price of life insurance the demand for life
insurance decreases by people. The study also found that crude death rate has
positive significant influence on life insurance demand, and it has been
cleared that the life insurance industry improved with high crude death rate in


Following are some recommendations for the promotion
and expansion of life insurance market in Pakistan.

As it has been made clear from the results
that gross saving is the main determinant of life insurance demand and we know
that saving is the part of income, therefore he government has to increase the
income by many ways such as through fiscal policy by reducing the taxes on
personal income and government can create the best set of incentives for
employers to encourage them to increase their working hours which will be
increase their income and thus will motivate them to save more. These
incentives may be reward incentives like bonuses and appreciation incentives
for workers which will leads to increase gross saving in Pakistan and thus will
increase the demand for life insurance to make the future more secure.

The government must give more importance
to decline the level of inflation, government can reduce the level of inflation
through proper economic mechanism such as through monetary policies, tight
fiscal policy and supply-side policy. For maintain the inflation level in country
the most essential tool is monetary policy by increasing interest rates. This will increase the cost of borrowing and will
discourages spending which tend to lower economic growth and lower inflation.
Other method to reduce inflation level is demand side by reducing the aggregate
demand either by increasing the tax on income or reduce the government which
will leads to reduce the growth and will lower the inflation. Other way to
reduce inflation can be supply side
policies in lung run through privatization and disregulation the firms in order
to rise the competitiveness and productivity. Thus, the supply-side may
leads to lower inflation.

The positive significant relationship
between level of education and life insurance demand indicates that life insurance
companies should have to focus more on increasing the awareness about life
insurance to the general-public. Thus, the activated banks for life insurance
and the managements of insurance companies can furtherly increase the awareness
of general-public and financial literacy through many methods. For example, by
using media, internet and billboard as intermediate of promotion of the life
insurance market and by making programs regarding life insurance importance,
the government have to clear picture to society that the life insurance is
essential for their family in term of saving extra in case of any future
uncertainty such health, education and job misfortunes.

As the prices of life insurance depends on
many risk factors among which age size of life insurance, occupation and
pre-existing health condition of policyholders are the important conditions for
determining price of life insurance. The rates for life insurance varies for
smokers and nonsmokers because the health condition of smokers is poor they
have higher risk of death. Efforts should be made by government to control smoking
so that the price of life insurance may not increase. These risks factors
affect the cost of life insurance which in return increase the price of life
insurance. Therefore, the life insurance policy should be buy in younger age
with healthy condition for small size term of policy to get the targeted sales
of life insurance business in Pakistan.

The government of Pakistan has to make the
efforts to reduce the political instability and must have to control the
terrorism to increase the life insurance business in Pakistan.

Regulatory bodies of the life insurance
area especially all activated banks for life insurance help an important role
in progress of life insurance sector. Customers trust and awareness can
increase the demand for life insurance which can be develop Through the
distribution channel of bancassurance. as this sector have a great importance
for the economy of Pakistan that’s why all banks must give more attention to the
advancement of the sector.

6.3. Limitations Of Study:   

of major limitation of this research study is small number of insurance data
set. The life insurance data prior to 1985 were not available, therefore,
restricting the annual sample size to 29 (from 1987-2016). Because the time is
not substantially long, therefore the results of small sample may be bias.
Another main problem in this study has been inconsistent of data from different
institutions. The data obtained from the annual reports of the state life insurance
have even different figures for the same year. Life insurance penetration data
was available from 1990 that’s why this study used the interpolates the data of
life insurance penetration Moreover, lack 

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