The underlying drivers of household purchase behaviour of life insurance

Masud, Muhammad Mehedi and Ahsan, Md Rajibul and Ismail, Noor Azina and Rana, Md Sohel (2021) The underlying drivers of household purchase behaviour of life insurance. Society and Business Review, 16 (3). pp. 442-458. ISSN 1746-5680, DOI

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Purpose Life insurance remains an essential part of financial and social security. The insurance penetration rate is high in the developed countries but very low in developing countries such as Malaysia, with only 4.8% penetration and extremely low underwritings. Therefore, this study aims to scrutinize the underlying determinants of a household purchase behaviour of life insurance. Design/methodology/approach The data generated from the administration of survey questionnaires to 325 households were analysed, using structural equation modelling to obtain the research purposes. Findings The analysis reveals that the knowledge of life insurance, attitudes towards life insurance, subjective norms (SN), trust and risk perception, affect the tendency of a household to purchase life insurance. The results of this study also highlight that households' purchase-propensity influences the purchase behaviour of life insurance. Concurrently, the intention to purchase has mediating effects on explanatory variables and purchase behaviour. Originality/value This paper established awareness, SN, perceived behavioural control, trust and risk perception as the key determinants promoting positive attitudes towards purchasing life insurance. The findings of this study can be successfully applied to different stakeholders in a similar context. This study suggests that the managers of life insurance companies should adjust their policy guidelines in accordance with the positive relationship between the constructs and consumers' intention to purchase life insurance.

Item Type: Article
Funders: Ungku Aziz Centre for Development Studies, (UADS), University of Malaya [PD001-2017]
Uncontrolled Keywords: Malaysia; Life insurance; Purchase behaviour; Household; 2019 purchase intention
Subjects: H Social Sciences > HF Commerce
Divisions: Faculty of Business and Economics > Department of Development Studies
Faculty of Business and Economics > Department of Economics and Applied Statistics
Faculty of Business and Economics > Dept of Business Policy and Strategy
Depositing User: Ms Zaharah Ramly
Date Deposited: 06 Sep 2022 01:46
Last Modified: 06 Sep 2022 01:46

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