This study investigates the effect of risk aversion and related factors on the demand for fire insurance. To analyze the relationship between policyholder characteristics, including age, gender, marital status, job status, and education, as well as properties of the insured object, including building type, building material, usage type, building age, and area, alongside the risk aversion variable with insurance demand, a logistic regression model was employed. This model is a suitable tool for investigating the factors influencing insurance purchase decisions due to its ability to analyze independent variables in both quantitative and categorical forms. The data for the study were collected through random sampling in Tehran using a structured questionnaire.
The findings reveal that risk aversion has a positive and significant effect on insurance demand, indicating that risk-averse individuals are more inclined to purchase insurance. Additionally, factors such as policyholder age and building age have a positive and significant effect on insurance demand, while brick as a building material has a negative and significant impact. These results highlight the importance of policyholder characteristics and properties of the building in shaping insurance purchasing behavior and emphasize the critical role of risk aversion in decision-making for insurance demand.