Financial Literacy and Insurance ParticipationEvidence from Malaysia

Abstract

This research investigates the determinants of insurance participation in Malaysia. From a sample of 227 individuals, the study will analyze the influence of financial literacy and social capital, on insurance participation in Malaysia. The relationship between financial literacy and social capital with insurance participation will analyze by using a multiple regression. The research model is
developed on the bases of two theories which are Self-efficacy theory and Social capital theory. Result revealed that Financial literacy and social capital shows important correlation with insurance participation. As a result, the independent variables financial literacy and social capital had a positive and significant impact on insurance participation in Malaysia.