An Acceptance Approach for Novel Technologies in Car Insurance

Abstract

Background: Unlike other financial services, technology-driven changes in the insurance industry have not been a vastly explored topic in scholarly literature. Incumbent insurance companies have hitherto been holding their positions using the complexity of the product, heavy regulation, and gigantic balance sheets as paramount factors for a relatively slow digitalization and technological transformation. However, new technologies such as car telematic devices have been creating a new insurance ecosystem. The aim of this study is to assess the telematics technology acceptance for insurance purposes. Methods: The study is based on the Unified Theory of Acceptance and Use of Technology (UTAUT). By interviewing 502 new car buyers, we tested the factors that affect the potential usage of telematic devices for insurance purposes. Results: The results indicate that facilitating conditions are the main predictor of telematics use. Moreover, privacy concerns related to the potential abuse of driving behavior data play an important role in technology acceptance. Conclusions: Although novel insurance technologies are mainly presented as user-driven, users (drivers and insurance buyers) are often neglected as an active party in the development of such technologies.

Investigating the intention of purchasing private pension scheme based on an integrated FBM-UTAUT model: The case of China

“…We regard facilitating conditions as facilitators and suppose that the stronger the FC is, the higher the purchase intention will be. The existing studies have clearly supported the positive correlation between FC and behavior intention in various finance-related contexts, such as mobile banking (Afshan and Sharif, 2016;Bhatiasevi, 2016), health insurance (Ndifon et al, 2020), car insurance (Milanović et al, 2020), etc.…”

Integration of traditional and telematics data for efficient insurance claims prediction

“…In a similar way, Milanović et al. (2020) imply that policyholders who are willing to provide telematics data tend to have less concern about privacy issues. Thus, we can observe a selection bias in the telematics dataset due to privacy issues as well as the favorable selection.…”

“…Also Duri et al (2002) mention that there is a tendency to observe a decrease in the amount of telematics data due to privacy concerns, which is a similar trend among web users with privacy concerns. In a similar way, Milanović et al (2020) imply that policyholders who are willing to provide telematics data tend to have less concern about privacy issues. Thus, we can observe a selection bias in the telematics dataset due to privacy issues as well as the favorable selection.…”

Reviewing the Components of Technology Acceptance Behavior in Transportation Sector

“…Usability of these tools was mainly validated by the TAM and UTAUT models. According to multiple studies from South Korea, Quality features of car navigation system [46] and Perceived Usefulness of such tools [47] can become the adopting triggers among citizen while in Serbia, installing telematics for cars insurance purpose was supported by Facilitating Conditions [48]. Social Influence and Usefulness can change the netizen behavior in Malaysia to use dashboard cam [49].…”