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Article
Publication date: 22 November 2011

Milton Boyd, Jeffrey Pai, Qiao Zhang, H. Holly Wang and Ke Wang

The purpose of this paper is to explain the factors affecting crop insurance purchases by farmers in Inner Mongolia, China.

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Abstract

Purpose

The purpose of this paper is to explain the factors affecting crop insurance purchases by farmers in Inner Mongolia, China.

Design/methodology/approach

A survey of farmers in Inner Mongolia, China, is undertaken. Selected variables are used to explain crop insurance purchases, and a probit regression model is used for the analysis.

Findings

Results show that a number of variables explain crop insurance purchases by farmers in Inner Mongolia. Of the eight variables in the model, seven are statistically significant. The eight variables used to explain crop insurance purchases are: knowledge of crop insurance, previous purchases of crop insurance, trust of the crop insurance company, amount of risk taken on by the farmer, importance of low crop insurance premium, government as the main information source for crop insurance, role of head of village, and number of family members working in the city.

Research limitations/implications

A possible limitation of the study is that data includes only one geographic area, Inner Mongolia, China, and so results may not always fully generalize to all regions of China, for all situations.

Practical implications

Crop insurance has been recently expanded in China, and the information from this study should be useful for insurance companies and government policy makers that are attempting to increase the adoption rate of crop insurance in China.

Social implications

Crop insurance may be a useful approach for stabilizing the agricultural sector, and for increasing agricultural production and food security in China.

Originality/value

This is the first study to quantitatively model the factors affecting crop insurance purchases by farmers in Inner Mongolia, China.

Details

China Agricultural Economic Review, vol. 3 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 1 October 2000

Clare Chow‐Chua and Geraldine Lim

Faced with fierce competition, increasingly more organizations seek to audit demand in the marketplace. The same can be said for insurers. Empirical findings show that insurers…

4001

Abstract

Faced with fierce competition, increasingly more organizations seek to audit demand in the marketplace. The same can be said for insurers. Empirical findings show that insurers are widely disliked by customers, and insurance agents talked to clients on average once every eight years. We found that approximately 44 per cent of the population does not own any form of insurance, for example life insurance and personal accidents insurance. What are the underlying reasons why the majority of people do not insure themselves against hazards? There is a need for insurers to undertake a demand audit in order to understand what the policyholder wants and needs. Information from customers plays a major role in the auditing process. Our audit checklist includes: demographic characteristics of policyholders and non‐policyholders; reasons for being insured and not insured; and critical purchasing factors. The demand audit that we surveyed will help the insurance industry design a good strategy to meet the demands of the market.

Details

Managerial Auditing Journal, vol. 15 no. 7
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 19 March 2018

Junying Liu, Sen Lin and Yingbin Feng

Construction insurance has been advocated as a useful financial means to transfer risks and mitigate potential project losses. However, there is a general reluctance to purchase

Abstract

Purpose

Construction insurance has been advocated as a useful financial means to transfer risks and mitigate potential project losses. However, there is a general reluctance to purchase construction insurance in China. The purpose of this paper is to develop an extended theory of planned behavior (TPB) model to understand and predict contractors’ construction insurance purchasing intention.

Design/methodology/approach

Quantitative data were collected through a questionnaire survey. The respondents comprise 130 project directors/managers and contract managers/administrators who were involved in or familiar with the construction insurance purchasing or managing. Data were analyzed using structural equation modeling.

Findings

This study developed an extended TPB model to explain the contractors’ intention formation. The results indicated that the insurance purchasing intention was mainly influenced by attitudes and subjective norm, rather than perceived behavioral control. The analyses also revealed that the added variables (risk perception and past experience) had a significant impact on the attitudes and perceived behavioral control.

Originality/value

This study identified the factors leading to Chinese contractors’ low willingness to purchase construction insurance by extending the TPB model to the context of construction insurance purchasing. The extended TPB model may serve as a theoretical framework and basis for the Chinese contractors, insurers, and regulators to understand the root causes of contractors’ low willingness to purchase construction insurance and make joint efforts to address the risks and insurance in the construction industry.

Details

Engineering, Construction and Architectural Management, vol. 25 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 11 March 2022

Haiyan Jiang, Jing Jia and Yuanyuan Hu

This study aims to investigate whether firms purchase directors' and officers' liability (D&O) insurance when the country-level economic policy uncertainty (EPU) is high.

1332

Abstract

Purpose

This study aims to investigate whether firms purchase directors' and officers' liability (D&O) insurance when the country-level economic policy uncertainty (EPU) is high.

Design/methodology/approach

This study uses D&O insurance data from Chinese listed firms between 2003 and 2019 to conduct regression analyses to examine the association between D&O insurance and EPU.

Findings

The results show that government EPU, despite being an exogenous factor, increases the likelihood of firms' purchasing D&O insurance, and this effect is more pronounced when firms are exposed to great share price crash risk and high litigation risk, suggesting that firms intend to purchase D&O insurance possibly due to the accentuated stock price crash risk and litigation risk associated with EPU. In addition, the results indicate that the effect of EPU on the D&O insurance purchase decision is moderated by the provincial capital market development and internal control quality.

Practical implications

The study highlights the role of uncertain economic policies in shareholder approval of D&O insurance purchases.

Originality/value

The study enriches the literature on the determinants of D&O insurance purchases by documenting novel evidence that country-level EPU is a key institutional factor shaping firms' decisions to purchase D&O insurance.

Details

China Accounting and Finance Review, vol. 24 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 2 March 2023

Chen-Ying Lee

Wearable technology and mobile commerce have significant applications for both enterprises and customers, but few studies explore purchase behavior regarding wearable technology…

Abstract

Purpose

Wearable technology and mobile commerce have significant applications for both enterprises and customers, but few studies explore purchase behavior regarding wearable technology combined mobile device with the spillover-effect health insurance. The purpose of this study is to investigate customers’ purchase behavior on the spillover-effect insurance products, provide health insurers input for their marketing strategies and enhance policy sales volumes.

Design/methodology/approach

This study assessed consumers’ purchase behavior regarding spillover-effect health insurance in Taiwan, using the purposive sampling method to collect questionnaire survey of 233 respondents. The data are using analysis of variance, multiple regression and hierarchical regression to analyze and test the hypotheses.

Findings

The results indicated that all extended technology acceptance model (TAM) variables significantly and positively affected consumer’s attitude toward using spillover-effect health insurance. In addition, consumers’ subjective norms and usage attitudes positively affect their intention to purchase spillover-effect insurance products. However, hierarchical regression analysis result that trust has no moderating effect between usage attitudes and purchase intentions.

Originality/value

This study examines the understanding of customers’ attitude toward using and intention to purchase spillover-effect in health insurance, by integrating the extended TAM theory. The results have practical implications for customers’ intention to purchase spillover-effect health insurance, and provides innovative services to reduce losses in the health insurance, improves customer health management and contributes to fulfilling the need for marketing evidence in an emerging market of insurance.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 17 no. 1
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 7 June 2021

Muhammad Mehedi Masud, Md Rajibul Ahsan, Noor Azina Ismail and Md Sohel Rana

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…

1163

Abstract

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.

Details

Society and Business Review, vol. 16 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 5 May 2015

Jia Lin, Milton Boyd, Jeffrey Pai, Lysa Porth, Qiao Zhang and Ke Wang

The purpose of this paper is to explain the factors affecting farmers’ willingness to purchase weather index insurance for crops in China, in the Province of Hainan, and to also…

Abstract

Purpose

The purpose of this paper is to explain the factors affecting farmers’ willingness to purchase weather index insurance for crops in China, in the Province of Hainan, and to also provide additional background information on weather index insurance.

Design/methodology/approach

A survey of 134 farmers was undertaken in Hainan, China, regarding their willingness to purchase weather index insurance. A probit regression model was used, and a number of variables were included to explain willingness of farmers to purchase weather index insurance.

Findings

In total, 11 of 15 variables in the model are found to be statistically significant in explaining farmers’ willingness to purchase weather index insurance.

Research limitations/implications

First, farmers’ interest in weather index insurance may be limited due to basis risk. Second, some farmers may not sufficiently understand weather index insurance and so may not purchase it, and a considerable portion of farmers may also require a subsidy if they are to purchase weather insurance.

Practical implications

Weather index insurance may provide a lower cost alternative than traditional crop insurance, however, basis risk remains a main challenge.

Originality/value

This is the first study to quantitatively study the factors affecting the willingness of farmers to purchase weather index insurance for agriculture in the province of Hainan, China.

Details

Agricultural Finance Review, vol. 75 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 8 May 2009

Matthew Ginder, Aslihan D. Spaulding, Kerry W. Tudor and J. Randy Winter

The purpose of this paper is to determine which factors are most influential to farmers' crop insurance purchasing decisions in northern Illinois.

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Abstract

Purpose

The purpose of this paper is to determine which factors are most influential to farmers' crop insurance purchasing decisions in northern Illinois.

Design/methodology/approach

A mail survey method was used to collect information from farmers in a 42 county region of Illinois.

Findings

Of the factors analyzed, price had the most significant effect on crop insurance purchase decisions. While acres farmed had statistically significant impact on most of the crop insurance purchase decisions, different factors played a role in purchase decisions based on types of insurance and types of crops covered.

Research limitations/implications

The results of this study warrant additional research relative to crop insurance purchase decisions. Analyzing the affect of varying degrees of government subsidization across crop insurance plans and coverage levels on purchase decisions is recommended. Questions regarding the relationship between crop insurance subsidization, farm program payments, and ad hoc disaster payments would be relevant in light of World Trade Organization and federal budget discussions. Also, asking participants to indicate if they have a written grain marketing plan and if that plan leverages crop insurance coverage to support forward contracting or pre‐harvest pricing would provide additional insights in determining how crop insurance purchase decisions are made. Questions regarding the claims process should be incorporated into future studies on this topic. The timeliness of claims payments, as well as the farmer's level of satisfaction with the claims adjustor and claims process may factor into the decision‐making process.

Practical implications

Illinois farmers and crop insurance agencies could benefit from this study. Findings could improve the crop insurance products and services available to Illinois farmers and make the federal crop insurance program more effective in enhancing farmers' ability to manage crop production risk.

Originality/value

This paper identified the factors that are most influential to farmers' crop insurance purchasing decisions in northern Illinois.

Details

Agricultural Finance Review, vol. 69 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 31 August 2010

Dwane H. Dean

Several studies have demonstrated an inverse relationship between experience in an activity and perceived risk for the individual in the activity. That is, as experience…

1222

Abstract

Purpose

Several studies have demonstrated an inverse relationship between experience in an activity and perceived risk for the individual in the activity. That is, as experience increases, perceived risk decreases. This phenomenon has been labeled risk acculturation. The present study aims to examine prior rental car experience for its effect on estimated odds of an accident and likelihood to purchase rental car insurance.

Design/methodology/approach

A convenience sample of 19‐24 year old students read a car rental scenario within a questionnaire and responded to questions regarding past risk behavior, car rental experience, perceived risk, likelihood of insurance purchase, and related topics.

Findings

Compared to people who had not rented a car before, people with prior rental experience estimated the odds of an accident involving their vehicle to be significantly less likely (a risk acculturation effect). Also, subjects with prior rental car experience were significantly less likely to purchase a collision damage waiver and supplemental liability insurance. Of the variables in this study, only experience significantly predicted both types of insurance purchase. The two variables of estimated odds of an accident and knowledge of existing insurance coverage were not significant predictors for either type of insurance purchase.

Research limitations/implications

Risk acculturation is best documented through a longitudinal study rather than the present cross‐sectional investigation. Although a sample of young adults with limited driving experience was helpful in identifying respondents who had not rented a car before, the results of the present study may not generalize to the broader population of car drivers.

Originality/value

The present study may be the first to identify a risk acculturation effect within an insurance context. However, the effect of experience on insurance purchase is independent of that of risk acculturation, and further research is needed to clarify the mechanism of the effect.

Details

Young Consumers, vol. 11 no. 3
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 1 June 2015

Nizar Souiden and Yosr Jabeur

The purpose of this paper is to investigate the role of Islamic beliefs in moderating consumers’ attitudes and purchase intentions of conventional and Islamic life insurance

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Abstract

Purpose

The purpose of this paper is to investigate the role of Islamic beliefs in moderating consumers’ attitudes and purchase intentions of conventional and Islamic life insurance. Second, it investigates the role of Islamic beliefs in moderating the relationship between the attitude toward conventional/Islamic life insurance and purchase intentions of these types of services.

Design/methodology/approach

A questionnaire was administered online in a Muslim liberal country where both types of insurance are offered. Based on a total sample of 207 responses, ANOVA tests and a structural Equation Modeling were used to test the research hypotheses.

Findings

Results show that: the higher (lower) the Islamic beliefs of individuals, the less (more) favorable their attitude will be toward conventional life insurance and the more (less) favorable their attitude will be toward Islamic life insurance; the higher (lower) the Islamic beliefs of individuals, the weaker (stronger) their purchase intentions for conventional life insurance will be and the stronger (weaker) their purchase intentions for Islamic life insurance will be; and Islamic beliefs moderate the relationships between attitudes and purchase intentions of life insurance.

Practical implications

Because they play a significant role in moderating consumers’ attitudes and purchase intentions of conventional and Islamic life insurance, Islamic beliefs can be used as a meaningful criterion to segment the life insurance markets in (less conservative) Muslim countries. This would help insurance companies to better target their services. In a case where two segments coexist (i.e. individuals scoring low on Islamic beliefs vs individuals scoring high on Islamic beliefs), insurers should weigh different strategic options by targeting one of the two segments or both of them. Perhaps the main issue occurs when an insurer attempts to target both segments. In this case, managers should be aware of the confusion that they might create in the mind of their clients (or potential clients). Concurrently offering two types of life insurance (conventional and Islamic) may put the insurers’ credibility at stake.

Originality/value

Earlier studies report that in Muslim countries, the demand for life insurance is weak or negatively correlated with religion. The majority of these studies consider religion as a macro indicator (i.e. at the country level) when explaining the demand for such services. The present study further clarifies the nature of the relationship between religion and the demand for life insurance by: examining the role of Islamic beliefs (as one of the main dimensions of Muslims’ religiosity) at the micro level (i.e. at the consumer level); and investigating the moderating role of Islamic beliefs in explaining attitudes and purchase intentions of conventional and Islamic life insurance in a less conservative Muslim country.

Details

International Journal of Bank Marketing, vol. 33 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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