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

Abstract

Multifold effects of the COVID-19 global health crisis and economic lockdowns are reflected in the insurance industry, and are predicted to expand to the post-COVID-19 era. It is expected that, within a short period of time, the current worldwide situation, in regards to the coronavirus pandemic, will be reflected in new trends, regarding customer behavior, organizational management, and culture, as well as reveal improved business management models, legacy infrastructure, and service systems in insurance organizations. Here, a focus on end-user preferences, data, and their behavior modeling in digital platforms are major practical drivers within the modern insurance concept, but there is a paucity of researches within the theoretical synthesis of consumer decision-making (CDM) models, information system theories, and behavioral economics concerning modern insurance-specific value chains and digitalized decision-making processes. Therefore, the following research aims to expand upon the existing scientific knowledge of end-user behavioral patterns and process frameworks in the Baltic insurance market, by including and examining a factor group of technological enablers and a digital environment. Research results in digitalization, personalization, and customization levels within the Baltic non-life insurance market are homogenous with a leading position of Estonia and overall evaluations ranging between Satisfied and Rather Good. There are also three major factor groups and process stages identified, which influence insurance purchase decision-making in digital insurance platforms in the Baltic market.

The Future of Insurance Intermediation in the Age of the Digital Platform Economy

“…Our research is exploratory in nature and our findings are short of empirical observation. More research is needed to explore how different roles are fulfilled by current market players (e.g., Stoeckli et al 2018), how customers take insurance-related decisions in a digital platform context (e.g., Baranauskas and Raišien ė 2021), what drives the performance of different market forms in practice (e.g., Comanac et al 2016), and what impact regulation (e.g., Marano 2021), the choice of pricing and compensation structure (e.g., Tseng and Kang 2014), and the willingness to share data (e.g., Pugnetti and Seitz 2021) have on market development. Considering the significant share of overall expenses currently consumed by insurance intermediation, further research on ways to leverage the dynamics of MSPs in internalizing network effects, triggering recombinant innovation, and enabling scale and scope by minimizing marginal costs will be not only academically interesting but economically relevant.…”

Continuous Use of NFT Trading Platforms: A Perspective Integrating the Expectation Confirmation Model and the Information Systems Success Model

“…According to Xin et al ( 2023), a significant positive relationship exists between service quality, ease of use, and usefulness of the shopping experience. [27]Moreover, studies by Baranauskas and Raišienė (2021) substantiated the close connection among service quality, ease of use, and usefulness [28]. Hanjaya et al (2019) further highlighted the association between service quality, ease of use, and usefulness [29].…”

Algorithms and Methods for Designing and Scheduling Smart Manufacturing Systems

“…The last article in the given order is titled "Reflections on the customer decision-making process in the digital insurance platforms: An empirical study of the Baltic market" [15]. It aims to expand upon the existing scientific knowledge of end-user behavioral patterns and process frameworks in the Baltic insurance market, by including and examining a factor group of technological enablers.…”