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Where Will the ‘Silver Money’ Go?
Author(s) -
Park Na Young
Publication year - 2017
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/eufm.12099
Subject(s) - earnings , pension , consumption (sociology) , hedge , business , risk aversion (psychology) , risk management , asset (computer security) , safer , monetary economics , economics , finance , financial economics , expected utility hypothesis , ecology , social science , computer security , sociology , computer science , biology
Using international country‐level data, this paper shows that demographic ageing is likely to significantly expand the insurance industry. This expansion is driven by the increased need to secure earnings for post‐retirement consumption, the desire to hedge against risks associated with increasing age, and the older generations risk aversion increasing the demand for safer assets such as insurance and pension products. Moreover, such an expansion of the insurance industry is particularly apparent in financially liberalised countries. This is because risk and asset management associated with insurance and pension products could be facilitated and more effective in liberalised financial markets.