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Trust - The Intangible Asset Of Policyholder Behavior On Insurance Market

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Listed:
  • Gabriela-Mihaela MUREÅžAN
  • Gabriel ARMEAN

Abstract

Our analysis aims to identify the typology of consumers’ behavior on insurance market. The initial sample consisted of 1579 individuals who were randomly selected by Metro Media Transilvania (MMT) with the Computer-Assisted Telephonic Interview (CATI) method. Using the Multiple Correspondence Analysis (MCA) and logistic regression, we are showing that higher levels of trust, pleasant experiences, income and education have a positive impact on insurance development. This theoretical approach is relatively new as there are no specialized studies to investigate the intangible asset in insurance companies in Romania’s case. This article should help the insurers to understand the role of trust and the importance of pleasant experiences in selling financial services such as life insurance and voluntary private pension. JEL Codes - C25, G02, G22, J32

Suggested Citation

  • Gabriela-Mihaela MUREÅžAN & Gabriel ARMEAN, 2017. "Trust - The Intangible Asset Of Policyholder Behavior On Insurance Market," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 63(3), pages 125-136, January.
    • Handle: RePEc:aic:saebjn:v:63:y:2017:i:3:p:125-136:n:54
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    File URL: http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1032
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    References listed on IDEAS

    as
    1. Feyen, Erik & Lester, Rodney & Rocha, Roberto, 2011. "What drives the development of the insurance sector ? an empirical analysis based on a panel of developed and developing countries," Policy Research Working Paper Series 5572, The World Bank.
    2. Thorsten Beck & Ian Webb, 2003. "Economic, Demographic, and Institutional Determinants of Life Insurance Consumption across Countries," The World Bank Economic Review, World Bank, vol. 17(1), pages 51-88, June.
    3. Gaël Dupont, 2004. "Pensions reforms in acceding countries," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 55-81.
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    More about this item

    Keywords

    behavior; life insurance; logit; pension; trust;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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