Herd Behavior in the Insurance Market: A Survey

Abstract

We conduct a survey to examine herd behavior in the insurance market. Following prior studies on consumers' use of information sources in their purchase decision-making processes we develop hypotheses that explore the relationship between selection of information sources and herd behavior among potential insurance buyers in the market. Our results strongly support contentions that insurance buyers are significantly influenced in their choices by recommendations from different information sources and they do use these as herd cues to infer insurance product quality when making their own purchase decisions. In particular, our findings suggest that potential insurance buyers are more likely to be influenced by collective intelligence than by insurance experts.

The Influence of Attitude and Herding on the Credit Decision-Making of Micro, Small, and Medium Enterprises

“…Secondly, Herding's behaviour from MSMEs actors did not have a significant positive effect on credit decision making. This result is contrary to the results of Liu, study which states that group behaviour and the behaviour of those with good reputation have a significant positive effect on decision making [22]. There is a difference in the process of analysis between this study and Liu research [22].…”

“…This result is contrary to the results of Liu, study which states that group behaviour and the behaviour of those with good reputation have a significant positive effect on decision making [22]. There is a difference in the process of analysis between this study and Liu research [22]. This study included intervening variables in the form of temporary interest in Liu study directly [22].…”

“…There is a difference in the process of analysis between this study and Liu research [22]. This study included intervening variables in the form of temporary interest in Liu study directly [22]. In accordance with the function of the intervening variable that is as an interruption between the independent variable and the dependent variable where the independent variable does not directly affect the results of the dependent variable.…”