Q1: Which two independent variables are statistically significant to gross insurance premiums per capita?
A1: They are gross national income per capita and price level.
Q2: How does life insurance expenditure relate to income level?
A2: They are positively related.
Q3: When there is a deflation, why will gross insurance premiums per capita increase?
A3: It is because when there is a deflation, interest rate will decrease, benefit from investment will also decrease and individuals may transfer money from investment to insurance products.