Insurance Service Purchase Decision-Making Rationale: Expert-Based Evidence From Lithuania

Abstract

This paper deals with the examination of the rationale for insurance service purchase decision making with a focus on Lithuania and its possible implications for both Lithuania and other developing insurance markets. This work proposes a model that reflects the several stages of the insurance service purchase decision making process, including the time dimension. This model is constructed on the basis of three hypotheses; these hypotheses are tested based on data collected by means of an insurance expert survey. The results confirm the existence of two stages of insurance service purchase decision making, where one's intellect and income determine the inclination towards insurance and where the price and quality of an insurance service determine its purchase decision. The research reveals a relatively equivalent impact of both consumers' intellect and income on their inclination towards insurance in general; however, it strongly indicates the consumers' strong focus on the price of the service as opposed to its quality when deciding to purchase an insurance service. The research also discloses the higher complexity of the decision making process when purchasing life insurance services as compared to non-life insurance services.

Reflections on the Customer Decision-Making Process in the Digital Insurance Platforms: An Empirical Study of the Baltic Market

“…From a theoretical point of view, the research refers to predecessor studies in the field of non-life insurance consumer decision-making, such as Hsee and Kunreuther (2000) [7], Kunreuther and Pauly (2006; [8,9], and a cross-border study report by the European Commission (2017) [10]. The present research also follows key findings and limitations of scientific studies on behavioral patterns in the Baltic insurance market, such as research by Kiyak and Pranckeviči ūt ė (2014) [11], and longitudinal studies conducted by Ulbinait ė et al (2010,2011,2013) [12][13][14][15]. Additionally, novel studies of comparison websites [2], multi-sided platforms [1] in the insurance industry and the Service-Dominant Architecture (SDA) [16], as well as insurance literacy [16,17], were considered.…”

Analysis of Determinants, Influencing Life Insurance Demand in the Czech Republic

“…Determinanta příjem, kterou zde nahrazuje průměrná mzda, vystupuje v naprosté většině studií jako faktor s pozitivním vlivem na poptávku po pojištění. Příjem je klíčovou determinantou, neboť se ekonomické subjekty při nákupu pojištění rozhodují jednak na základě výše volných peněžních prostředků , ale také podle ceny samotné pojistné ochrany (Ulbinaite a Kucinskiene, 2013).…”