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From intention to decision in purchasing life insurance and private pensions: different effects of knowledge and behavioural factors

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  • Dragos, Simona Laura
  • Dragos, Cristian Mihai
  • Muresan, Gabriela Mihaela

Abstract

In this paper, we test several hypotheses about the influence of behavioural and socio-demographic factors on buying a life insurance policy or a private pension. Data were gathered from a sample of 1579 individuals, representative of Romanian consumers. We designed a questionnaire that emphasizes five distinct categories of determinants: economic factors, socio-demographic factors, general behavioural factors, specific behavioural factors, and a self-constructed index of insurance knowledge. Using logit regression models, we highlight a different mechanism that emphasizes the association between the intention and decision for life insurance and private pensions and its determinants. We show that specific behavioural factors and insurance knowledge are highly significant for the decision to buy, but not for the intention to buy, for both types of products.

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  • Dragos, Simona Laura & Dragos, Cristian Mihai & Muresan, Gabriela Mihaela, 2020. "From intention to decision in purchasing life insurance and private pensions: different effects of knowledge and behavioural factors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    • Handle: RePEc:eee:soceco:v:87:y:2020:i:c:s2214804320303141
    DOI: 10.1016/j.socec.2020.101555
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    Cited by:

    1. Eling, Martin & Ghavibazoo, Omid & Hanewald, Katja, 2021. "Willingness to take financial risks and insurance holdings: A European survey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    2. Hwang, In Do, 2024. "Behavioral aspects of household portfolio choice: Effects of loss aversion on life insurance uptake and savings," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 1029-1053.
    3. Dragos, Cristian Mihai & Dragos, Simona Laura & Mare, Codruta & Muresan, Gabriela Mihaela & Purcel, Alexandra-Anca, 2023. "Does risk assessment and specific knowledge impact crop insurance underwriting? Evidence from Romanian farmers," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 343-358.
    4. Codruţa Mare & Daniela Manaţe & Gabriela-Mihaela Mureşan & Simona Laura Dragoş & Cristian Mihai Dragoş & Alexandra-Anca Purcel, 2022. "Machine Learning Models for Predicting Romanian Farmers’ Purchase of Crop Insurance," Mathematics, MDPI, vol. 10(19), pages 1-13, October.

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