What primarily drives the aggregate demand for life assurance?

Affordability primarily drives the aggregate demand for life assurance because it reflects individuals' ability to purchase insurance policies based on their financial circumstances. When the cost of life assurance is perceived to be within reach—considering disposable income, household expenses, and other financial commitments—more people are likely to seek out and secure these financial products.

Affordability is crucial because even if individuals recognize the importance of life assurance for financial security and protection of dependents, they may choose not to purchase policies if they consider the premiums unaffordable. Thus, the relationship between a person's financial situation and their willingness to invest in life assurance is a fundamental aspect influencing demand.

Other factors, like regulatory changes, investment returns, and market competition, can impact the insurance industry but are secondary to the core consideration of whether individuals feel they can afford the necessary coverage. Therefore, while these elements play a role, the primary driver of demand remains the affordability of life assurance policies for potential buyers.