o:36284 The impact of air pollution on demand for life and health insurance en Air pollution has become a severe cause of some serious illnesses. The costs of medical care substantially increase for individuals exposed to high levels of air pollution. Air pollution also affects decision-making, as documented in some experimental research. With enormous air pollution, people have become more risk-averse and have increased their demand for life and health insurance. Theoretical and empirical arguments show that demand for life insurance is nonlinear, meaning demand increases when air pollution reaches a certain threshold considered dangerous for health. Below this level of pollution, demand for life insurance might fall when air pollution increases. Demand for health insurance also exhibits a non-monotonic pattern similar to life insurance. In addition, there is a heterogeneous impact of air pollution on different individuals based on their income level, education, gender, marital status, the number of children, and the geographic location of their household. Risk perception plays an important role in insurance purchase decisions, and the impact of advertising and the behavior of friends and relatives is an important factor for air pollution risk perception. Empirical studies based on the micro-data show that the impact of air pollution is stronger on the demand for health than on the demand for life insurance. Keywords: air polution, life insurance, health insurance 91552100 170317065 1552100 978-86-403-1879-2 2025-06-10T12:29:03.319Z 44 no 46 Dejan Trifunović Univerzitet u Beogradu Ekonomski fakultet 12940135 0000-0003-2125-8142 2025 46 Đorđe Mitrović Univerzitet u Beogradu Ekonomski fakultet 12911463 0000-0002-1839-1105 2025 application/pdf 396381 https://phaidrabg.bg.ac.rs/o:36284 no yes 18 70 369 1556235 11A03 Innovations in insurance : from traditional to modern market 29 44 Belgrade University of Belgrade, Faculty of economics and business, Publishing centre 2025