IDEAS home Printed from https://ideas.repec.org/a/vrs/irfinc/v10y2025i2p53-64n1005.html

Determinants of Insurance Trust: The Relative Influence of Firm Characteristics, Salesperson Attributes, and Consumer Trust Orientation in Korea and China

Author

Listed:
  • Selin Jin

    (PhD; CEO, Wellpass Co., Ltd., Korea)

  • Jung Hongjoo

    (Professor, College of Business Administration, Sungkyunkwan University, Korea)

Abstract

This study investigates the determinants of trust in insurance companies and its behavioral consequences by integrating individual trust disposition, salesperson-related attributes, and firm-level characteristics. Using survey data collected from 905 respondents in Korea (n=249) and China (n=656), we employed exploratory factor analysis followed by stepwise regression to identify the primary drivers of insurance trust and subsequent behavioral intentions. It is the first to examine how trust in insurance relationships is shaped by both consumer characteristics (subjects) and insurer/salesperson characteristics (objects). Specifically, we ask whether distrust toward an insurer is more attributable to consumer dispositions or to insurer-related attributes. Results show that insurer-side characteristics—particularly salesperson attributes—play a more decisive role in shaping insurance trust. When consumer behavioral outcomes were examined, overall trust emerged as the strongest predictor of contract renewal intention, whereas recommendation intention was more strongly associated with relational factors linked to salesperson behavior. The study contributes to the trust literature by demonstrating the dynamic, multi-layered nature of trust in insurance relationships and offers actionable implications for trust-based relationship management in insurance markets.

Suggested Citation

  • Selin Jin & Jung Hongjoo, 2025. "Determinants of Insurance Trust: The Relative Influence of Firm Characteristics, Salesperson Attributes, and Consumer Trust Orientation in Korea and China," International Review of Financial Consumers, Sciendo, vol. 10(2), pages 53-64.
    • Handle: RePEc:vrs:irfinc:v:10:y:2025:i:2:p:53-64:n:1005
    DOI: 10.2478/irfc-2025-0009
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/irfc-2025-0009
    Download Restriction: no
    File URL: https://libkey.io/10.2478/irfc-2025-0009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shim, Soyeon & Serido, Joyce & Tang, Chuanyi, 2013. "After the global financial crash: Individual factors differentiating young adult consumers’ trust in banks and financial institutions," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 26-33.
    2. Brandon N. Cline & Claudia R. Williamson, 2020. "Trust, regulation, and contracting institutions," European Financial Management, European Financial Management Association, vol. 26(4), pages 859-895, September.
    3. Deqiu Chen & Xuejiao Liu & Cong Wang, 2016. "Social Trust and Bank Loan Financing: Evidence from China," Abacus, Accounting Foundation, University of Sydney, vol. 52(3), pages 374-403, September.
    4. Maarse, Hans & Jeurissen, Patrick, 2019. "Low institutional trust in health insurers in Dutch health care," Health Policy, Elsevier, vol. 123(3), pages 288-292.
    5. Geyskens, I. & Steenkamp, J.E.B.M. & Scheer, L.K. & Kumar, N., 1996. "The effects of trust and interdependence on relationship commitment : A trans-Atlantic study," Other publications TiSEM ef7c8d6c-963d-4ee7-8576-9, Tilburg University, School of Economics and Management.
    6. Delis, Manthos D. & Mylonidis, Nikolaos, 2015. "Trust, happiness, and households’ financial decisions," Journal of Financial Stability, Elsevier, vol. 20(C), pages 82-92.
    7. David-Jan Jansen & Robert Mosch & Carin Cruijsen, 2015. "When Does the General Public Lose Trust in Banks?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 48(2), pages 127-141, October.
    8. Schneider, Pia, 2005. "Trust in micro-health insurance: an exploratory study in Rwanda," Social Science & Medicine, Elsevier, vol. 61(7), pages 1430-1438, October.
    9. Park, Na Young, 2020. "Trust and trusting behavior in financial institutions: Evidence from South Korea," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 408-419.
    10. Kennedy, Mary Susan & Ferrell, Linda K. & LeClair, Debbie Thorne, 2001. "Consumers' trust of salesperson and manufacturer: an empirical study," Journal of Business Research, Elsevier, vol. 51(1), pages 73-86, January.
    11. Zongrun Wang & Mei Yang, 2019. "How does investors' heterogeneous trust affect the complexity of financial products? A look into the development of online finance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(4), pages 425-438, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carin van der Cruijsen & Jakob de Haan & Ria Roerink, 2023. "Trust in financial institutions: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1214-1254, September.
    2. Carin van der Cruijsen & Jakob de Haan & Ria Roerink, 2021. "Financial knowledge and trust in financial institutions," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(2), pages 680-714, June.
    3. Christophe Courbage & Christina Nicolas, 2021. "Trust in insurance: The importance of experiences," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(2), pages 263-291, June.
    4. Alamsyah, Halim & Ariefianto, Moch. Doddy & Saheruddin, Herman & Wardono, Seto & Trinugroho, Irwan, 2020. "Depositors’ trust: Some empirical evidence from Indonesia," Research in International Business and Finance, Elsevier, vol. 54(C).
    5. Jeniffer Rubio & Ana Belén Tulcanaza-Prieto, 2025. "Digital Payments Trust in Latin America and the Caribbean," Economies, MDPI, vol. 13(5), pages 1-18, May.
    6. Carin Cruijsen & Maurice Doll & Jakob Haan, 2025. "What drives trust in the financial sector supervisor? New empirical evidence for the Netherlands," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 52(1), pages 173-195, February.
    7. Jérémie Bertrand & Paul-Olivier Klein & Jean-Loup Soula, 2022. "Liquidity Creation and Trust Environment," Journal of Financial Services Research, Springer;Western Finance Association, vol. 62(3), pages 201-232, December.
    8. Michiel Bijlsma & Carin Cruijsen & Jester Koldijk, 2022. "Determinants of Trust in Banks’ Payment Services During COVID: An Exploration Using Daily Data," De Economist, Springer, vol. 170(2), pages 231-256, May.
    9. Chernykh, Lucy & Davydov, Denis & Sihvonen, Jukka, 2019. "Financial stability and public confidence in banks," BOFIT Discussion Papers 2/2019, Bank of Finland Institute for Emerging Economies (BOFIT).
    10. Chernykh, Lucy & Davydov, Denis & Sihvonen, Jukka, 2019. "Financial stability and public confidence in banks," BOFIT Discussion Papers 2/2019, Bank of Finland, Institute for Economies in Transition.
    11. Ammari, Aymen & Allodi, Evita & Salerno, Dario & Stella, Gian Paolo, 2023. "An asymmetrical approach to understanding consumer characteristics in banking trust during the COVID-19 pandemic in Italy," Research in International Business and Finance, Elsevier, vol. 64(C).
    12. Zongrun Wang & Mei Yang, 2020. "Effective allocation of financial services intensity and its impact on channel competition," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1473-1492, December.
    13. Bertrand, Jérémie & Burietz, Aurore & Klein, Paul-Olivier, 2026. "Trust in banks: Fostering (Naïve) firm-bank relationships," Journal of Economic Behavior & Organization, Elsevier, vol. 242(C).
    14. Chernykh, Lucy & Davydov, Denis & Sihvonen, Jukka, 2023. "Financial Stability and Public Confidence in Banks," Journal of Financial Stability, Elsevier, vol. 69(C).
    15. Küper, Inken & Edinger-Schons, Laura Marie, 2020. "Is sharing up for sale? Monetary exchanges in the sharing economy," Journal of Business Research, Elsevier, vol. 121(C), pages 223-234.
    16. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    17. Ahmed Ibrahim Alzahrani & T. Ramayah & Nalini Suppiah & Osama Alfarraj & Nasser Alalwan, 2020. "Modeling Blog Usage From a Developing Country Perspective Using Structural Equation Modeling (SEM)," SAGE Open, , vol. 10(3), pages 21582440209, July.
    18. Chen, Qian, 2024. "Media coverage, social trust and corporate financing efficiency," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    19. Fernando Ubeda & Alvaro Mendez & Francisco Javier Forcadell, 2024. "Sustainable banking and trust in the global South," Global Policy, London School of Economics and Political Science, vol. 15(S1), pages 34-44, March.
    20. Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:irfinc:v:10:y:2025:i:2:p:53-64:n:1005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.