Abstract
The following observations are made concerning household insurance. It is often assumed that risk perception is the starting-point of the insurance demand formation process. Nevertheless, it is not necessarily the case that the actual insurance demand is formed as a result of risk perception. It involves weaknesses arising from rational thought and behavior.
In this paper, we used path analysis to empirically test the relationship between the formation of domestic life insurance demand and risk perception in the four separate categories of death security, old-age security, health security, and care security.
As a result, the following features were revealed. In the case of old-age security and care security, risk perception can be recognized as the starting-point for insurance demand. In the case of death security and health security, however, this is not necessarily the case.
