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Developing and Validating a Behavioural Model of Cyberinsurance Adoption

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  • Dawn Branley-Bell

    (Department of Psychology, School of Life Sciences, Northumbria University, Newcastle upon Tyne NE1 8ST, UK)

  • Yolanda Gómez

    (DevStat, 46005 Valencia, Spain)

  • Lynne Coventry

    (Department of Psychology, School of Life Sciences, Northumbria University, Newcastle upon Tyne NE1 8ST, UK)

  • José Vila

    (DevStat, 46005 Valencia, Spain
    Intelligent Data Analysis Laboratory (IDAL), Center for Research in Social and Economic Behavior (ERI-CES), University of Valencia, 46022 Valencia, Spain)

  • Pam Briggs

    (Department of Psychology, School of Life Sciences, Northumbria University, Newcastle upon Tyne NE1 8ST, UK)

Abstract

Business disruption from cyberattacks is a growing concern, yet cyberinsurance uptake remains low. Using an online behavioural economics experiment with 4800 participants across four EU countries, this study tests a predictive model of cyberinsurance adoption, incorporating elements of Protection Motivation Theory (PMT) and the Theory of Planned Behaviour (TPB) as well as factors in relation to risk propensity and price. During the experiment, participants were given the opportunity to purchase different cybersecurity measures and cyberinsurance products before performing an online task. Participants likelihood of suffering a cyberattack was dependent upon their adoption of cybersecurity measures and their behaviour during the online task. The consequences of any attack were dependent upon the participants insurance decisions. Structural equation modelling was applied and the model was further developed to include elements of the wider security ecosystem. The final model shows that all TPB factors, and response efficacy from the PMT, positively predicted adoption of premium cyberinsurance. Interestingly, adoption of cybersecurity measures was associated with safer behaviour online, contrary to concerns of “moral hazard”. The findings highlight the need to consider the larger cybersecurity ecosystem when designing interventions to increase adoption of cyberinsurance and/or promote more secure online behaviour.

Suggested Citation

  • Dawn Branley-Bell & Yolanda Gómez & Lynne Coventry & José Vila & Pam Briggs, 2021. "Developing and Validating a Behavioural Model of Cyberinsurance Adoption," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9528-:d:620879
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    References listed on IDEAS

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    2. Kwasniok, Sascha, 2025. "Planned behavior, insurance knowledge and the demand for private disability insurance – Evidence from Germany," EconStor Preprints 321819, ZBW - Leibniz Information Centre for Economics.
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    4. Alfiero, Simona & Battisti, Enrico & Ηadjielias, Elias, 2022. "Black box technology, usage-based insurance, and prediction of purchase behavior: Evidence from the auto insurance sector," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    5. Emilio Soria-Olivas & Jos'e E. Vila Gisbert & Regino Barranquero Carde~nosa & Yolanda Gomez, 2022. "Integration of Behavioral Economic Models to Optimize ML performance and interpretability: a sandbox example," Papers 2205.01387, arXiv.org.
    6. Chih-Hsiung Chang, 2022. "Information Asymmetry and Card Debt Crisis in Taiwan," Bulletin of Applied Economics, Risk Market Journals, vol. 9(2), pages 123-145.

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