Effect of Attitude to Risk on Intention to Buy Life Insurance: A Study in Hanoi City

Life insurance is one of the earliest forms of insurance with the initial purpose of insuring the life and death events of the customer. In the world, there has been much research on life insurance in general, the life insurance buying behavior as well as the demand for life insurance. In fact, the insurance model is very diverse in assumptions about risk aversion (all assumptions from being related to completely dependent on risk aversion are assumed), relationship between risk aversion and assets, premium coefficient and loss distribution. Each study explored different angles and emphasized specific groups of factors such as economic, demographic, or socio-cultural. However, regardless of the research aspect, assumptions about life insurance needs as well as research on life insurance purchase decisions are all related to a factor of risk avoidance or attitude toward risk. Therefore, the influence of attitude toward risk is a factor worth considering when studying customers' life insurance decisions.

Data used in this study is collected from individuals in Hanoi city to examine the influence of attitude toward risk on the decision to participate in life insurance of individual customers. From the study result, some recommendations are given to insurers.