Households and individuals make various financial decisions, some of which are regarding debt. In 2018 a survey was conducted in six European countries on incurring financial liabilities and falling into debt. The survey was expected to provide insights as to the habits and attitudes of the surveyed while making debt decisions. The aim of this paper is to identify personal characteristics of debtors across different European countries and to compare the incidence of these characteristics in the groups examined across those countries. The hypothesis was that individuals who never fall into arrears differ from those who had or still have debt in terms of their personality traits. The research was carried out in Spain, Romania, Poland and Italy. Depending on the country, the sample size ranged from 802 to 1200 participants. The statistical analysis found that for most of these countries there existed significant differences between debtors and debt-free individuals regarding the level of conscientiousness, honesty, attitude towards money and shopping.
Usage-based insurance (UBI) is based on the idea that customers who are safer drivers should pay less for a policy than those who are less prudent. It is widely assumed that there is an incentive for insurers to use this technology, as it could make riskier drivers more likely to use non-telematics-based insurers. However, this hypothesis has not been verified empirically. In order to fill this research gap, a study (between December 2021 and March 2022) assessing the relationship between driving style and willingness to purchase a UBI-based policy and the relationship between risk propensity and willingness to purchase a UBI-based policy was conducted. The study, in the form of a questionnaire, was conducted in Poland and Spain. The samples consisted of 181 respondents in Poland and 51 in Spain. It was found that individual driving style was correlated with willingness to accept a UBI-based policy that included discounts and surcharges. It was also shown that propensity to risk influences willingness to purchase a UBI-based policy that offers discounts only to some extent. The study used suitable statistical measures and tests such as a chi-square test, U Mann-Whitney U test and a Kruskal-Wallis test. Results are significant for insurance companies that are going to introduce UBI. They allow shaping the product so that potential customers are interested in buying it, which, as research shows, may bring benefits to both insured and insurance companies.
Purpose: The paper's objective is to compare differences between people from four European countries in terms of however having or never having debt difficulty is related to risk attitude. Design/Methodology/Purpose: This paper aims to check however having or never having debt arrears is related to risk attitude. The hypothesis put forward is that independently of country, people who have never been in debt arrears are less risk-seeking than people who have ever had arrears; however, the differences in risk aversion between indebted and not indebted individuals are not equal among the nationalities examined. Findings: The hypothesis advanced was confirmed. It can be observed that people who have never had debt arrears are more risk-averse in most cases. In each country, the group of respondents with problems repaying debt rated themselves higher in terms of being a risktaker and more open to risk than other people. However, the ratings differed in their levels across the different countries. Moreover, in each country, people with debt arrears when asked to give someone advice on investment were more likely to choose the risky option, but the percentages differed among countries. Practical Implications: Present and past debtors are not the same in terms of risk attitude, and sometimes even past debtors resemble more non-debtors in risky behavior Originality: The article results from a large-scale survey (the smallest sample consisted of 802 subjects, the biggest of 1200) conducted in Spain, Italy, Poland, and Romania regarding the emergence of overdue debt.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.