| dc.description.abstract | In recent years, the world has been impacted by the Covid-19 epidemic, resulting in changes in human life patterns. People′s livelihoods and economy are sluggish. Governments of various countries have implemented interest rate-easing policies to introduce relief measures. Interest rates have continued to fall, thus stimulating the demand for housing purchases, and the number of housing loans has also increased accordingly. Covid-19 is an unknown risk to humanity, and insurance should increase demand due to its ability to transfer risk. Many banks have recently promoted mortgage life insurance as a life insurance product designed for mortgage borrowers. The mortgage borrowers are afraid of dying from the epidemic, and the family cannot repay the mortgage. The mortgage borrowers can protect their families by purchasing mortgage life insurance and transfer the risk of death caused by Covid-19 infection. Therefore, the demand for mortgage life insurance should increase. This study will explore whether Covid-19 has affected the willingness of mortgage borrowers to purchase mortgage life insurance and whether the amount of insurance has increased due to the uncertainty caused by Covid-19.
This study uses logistic regression to analyze whether the borrower′s characteristics and the loan condition variables of the bank′s approved loan affect the mortgagee′s willingness and the amount of insurance to purchase mortgage life insurance. According to empirical results, after the epidemic outbreak, the number of insured mortgage life insurance increased, but the insurance coverage ratio decreased. It is presumed that after the epidemic, the central bank implemented an interest rate easing policy, and the decline in mortgage interest rates has caused the cost of house buyers to decrease, leading to an increase in the number of mortgage applications. Although the risk awareness of the public has increased due to the increase in the epidemic, the rise in the number of mortgage applications is greater than the increase in the number of mortgage life insurance, so the insurance coverage rate has dropped compared to before the epidemic.
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