Effect of affordability on insurance purchase in Hong Kong

According to various studies conducted by the Hong Kong Special Administrative Region Government, the penetration of self-purchased insurance is rather low. But scholars revealed an ever growing trend in demand for life-insurance from various indicators, this together with the continuous reforms in the health protection system provide a potential development for the industry. To turn the desires into practice, comprehensive and accurate customer analysis is crucial. From time to time, income has been used as one of the major factors in explaining the insurance behaviour. However, the definition should not be limited to traditional context. With the use of a series of logistic regression models, it is revealed that new variables like personal finance consideration and the age of first policy purchase can act as the rationale of insurance purchase and provide different perspectives for affordability.