Securing The Future: Rational Risk Management Through Life Insurance
Natalia Sergeyevna Ivanova
Faculty of Social Sciences, National Research University – Higher School of Economics, Moscow, Russia
Abstract
Life insurance serves as a critical financial tool for long-term investment and economic stability, complementing personal savings and offering protection during significant life events such as marriage, childbirth, retirement, and unforeseen emergencies. In developed economies like Japan, the United Kingdom, and France, life insurance premiums constitute a significant share of the total insurance market, reflecting its role in personal financial planning and national economic growth.
The demand for life insurance is notably sensitive to economic volatility, uncertainty, and crisis events. However, how individuals adapt their insurance behavior in response to such macroeconomic pressures remains a complex and contested issue in both theoretical and empirical literature. As global demographic shifts increasingly place the burden of social protection on individuals rather than state systems, understanding these behavioral patterns becomes essential for policymakers, insurers, and financial planners.
This study focuses on Russia—a country that has experienced remarkable growth in its life insurance market in recent years, surpassing many developed and emerging economies. This growth is particularly noteworthy given Russia’s challenging economic environment, marked by declining oil prices, international sanctions, minimal structural reform, and stagnant GDP growth. Despite some recovery in oil prices, the country continues to face declining real disposable income and rising poverty levels.
Within this context of economic instability and social transformation, the study investigates how Russian individuals perceive and respond to uncertainty through life insurance uptake. The findings aim to shed light on behavioral trends, socio-economic drivers, and the evolving role of life insurance as both a personal financial safeguard and a component of national economic resilience. These insights are vital for shaping effective regulatory frameworks, targeted insurance marketing strategies, and sustainable financial inclusion policies.