Basic characteristics and determinants of demand for insurance services


The findings presented in this paper lead us to a conclusion that the demand for insurance is a very complex economic category. It is determined by a size of a certain social need, the need for insurance cover. Buyers of insurance satisfy that need on the insurance market. The structure and the volume of demand for insurance policies are determined by a number of factors which are commonly very different.
On the side of demand there is a lot of subjects that are different measured by their size, internal organisation and solvency – large, small or medium-sized enterprises, government institutions, handicraft businesses, various associations, households, individuals and the like. From the viewpoint of external characteristics demanders for insurance differ very much. There are differences from the standpoint of their internal characteristics, too. The internal characteristics are especially observable when individuals and families are concerned whose demand for insurance services is determined by a numerous psychological, personal, social and cultural factors.