The Effects of Trust in Insurers, Media Exposure, and Psychological Factors on Purchase Intention of Accident Coverage

LEE CHAN HEE; Hoil Kim

doi:10.23842/jif.2018.29.1.001

Journal of Insurance and Finance

2018, 29(1), pp.3-29
DOI :10.23842/jif.2018.29.1.001
Publisher : Korea Insurance Research Institute
Research Area : Business Management

LEE CHAN HEE ¹ , Hoil Kim ²

¹ 성균관대학교
² 안양대학교

ABSTRACT

This study empirically analyzed the effects of psychological factors, media exposure, and financial literacy on purchasing intention of accident insurance covering traffic accidents using structural equation model. The study showed that trust in insurers is found to be the most influential factor in the purchase intention. In the case of non-subscribers of accident coverage, media exposure had a positive effect on the new purchase intention of accident coverage as partial mediation of risk sentiment(fear and worry) on traffic accidents. The optimism bias and accident probability positively influenced the new purchase intention of accident coverage as full mediation of risk sentiment for traffic accidents. In addition, trust in government has a direct impact on the purchase intention of new accident coverage in a negative way. On the other hand, for the people who already joined accident coverage, trust in insurers and financial literacy influenced the additional purchase intention of accident coverage in positive and negative way respectively. The findings suggest that insurers, insurance industry, and financial authorities need to continue their efforts to improve the trust of insurance consumers for the sales of accident coverage. Furthermore, it is implied that there is a possibility of adverse selection in accident insurance market as the higher the perceived probability of traffic accident, the higher the purchase intention of accident coverage.
KEYWORDS

Accident Coverage , Trust in Insurer , Media Exposure , Fear , Worry , Trust in Government
REFERENCES (30)

[other] 금융감독원 / 2010 / 대학생 금융이해력 지수(FQ: Financial Quotient) 측정 결과

[journal] 남상욱 / 2014 / An Empirical Study on the Determinants of Trust for the Insurance Industry : a case of China / 디지털융복합연구 / 한국디지털정책학회 12 (2) : 211~221 / http://dx.doi.org/10.14400/JDC.2014.12.2.211

[report] 남상욱 / 2005 / 생보업의 사회적 신뢰 제고방안 / 생명보험 : 16~36

[journal] 류건식 / 2001 / 생명보험상품에 대한 소비자구매성향분석 / 보험학회지 / 한국보험학회 58 : 199~224

[journal] 박주영 / 2014 / Retirement Preparedness and Financial Stress After Retirement: A Comparison of Koreans, Chinese and Americans / 소비문화연구 / 한국소비문화학회 17 (2) : 183~204 / 10.17053/jcc.2014.17.2.009

[journal] 송해룡 / 2005 / A Study on Audience’s Awareness about the Media Reports of Science Technology Risk : Focused on the Genetically Modified Organism(GMO) Case / 한국언론학보 / 한국언론학회 49 (3) : 105~128

[journal] 이순재 / 2011 / An Analysis on Determinants of life Insurance Demand Using Panel Data: Focusing on Whole Life, Sickness & Accident and Variable Life / 보험학회지 / 한국보험학회 (90) : 51~75

[journal] 이승희 / 2013 / Anchoring Effects on Analysts' Target Stock Price Estimation / Financial Planning Review / 한국FP학회 6 (3) : 59~80

[journal] 이찬희 / 2017 / An Analysis of Determinants of Purchase of Accident Coverage Using Structural Equation Model / Journal of The Korean Data Analysis Society / 한국자료분석학회 19 (2) : 827~837

[journal] 이찬희 / 2013 / An Analysis of Determinants of Purchase and Preference of the Individual Pension : Focusing on Cognitive and Emotional Factors Financial Literacy, Trust and Risk Tolerance / 금융연구 / 한국금융학회 27 (4) : 25~51

[journal] 이찬희 / 2016 / An analysis of determinants of purchase intension of individual pension using structural equation model / 응용통계연구 / 한국통계학회 29 (3) : 409~424

[journal] 이현주 / 2011 / A Cognitive-social Model for Risk Perception of Terrorism / 한국심리학회지: 문화 및 사회문제 / 한국문화및사회문제심리학회 17 (4) : 485~503

[journal] 정세창 / 2006 / The Preference of Consumers for the Channels and the Distribution Strategies by Products / 보험금융연구 / 보험연구원 17 (1) : 35~70

[journal] 정운영 / 2015 / Psychological Factors and Insurance related Behavior - Focusing on Optimism Bias and Regret Aversion - / 소비문화연구 / 한국소비문화학회 18 (1) : 179~196 / 10.17053/jcc.2015.18.1.009

[journal] 정홍주 / 2005 / An Empirical Study on the Trust and Determination Factors of Trust in the Insurance Industry / 보험학회지 / 한국보험학회 (71) : 49~76

[journal] 좌보경 / 2013 / Media, Risk Characteristics, and Risk Perceptions The Context of Carcinogenic Hazards / 홍보학연구 / 한국PR학회 17 (4) : 72~109 / 10.15814/jpr.2013.17.4.72

[journal] 최명일 / 2009 / The Effect of Media Exposure as a Cue to Action on Purchase Intention of U.S. Beef : Focusing on the Mediating Effect of Perceived Susceptibility and Perceived Severity / 한국언론학보 / 한국언론학회 53 (6) : 50~65

[journal] 최아름 / 2016 / A Study on the Interrelationship between Financial Literacy and Financial Management Behaviors of University Students / Journal of The Korean Data Analysis Society / 한국자료분석학회 18 (5) : 2637~2650

[journal] Barclay, D. W. / 1995 / The partial least square(PLS) approach to casual modeling: Personal computer adoption and use as an illustration / Technology Studies 2 (2) : 285~309

[book] Blackwell, R. D. / 2001 / Consumer Behavior / The Dryden Press

[journal] Campbell, J. / 2011 / Consumer financial protection / Journal of Economic Perspectives 25 (1) : 94~

[report] Cappelletti, G. / 2011 / What determines annuity demand at retirement? / Bank of Italy : 1~38

[journal] 임세헌 / 2008 / An Empirical Study on Purchase Intention with Different Purchase Frequency for Online Automobile Insurance: A Trust-Based Decision-Making Model Approach / 리스크관리연구 / 한국리스크관리학회 19 (2) : 123~160 / 10.21480/tjrm.19.2.200812.005

[journal] Lusardi, A. / 2007 / Baby Boomer retirement security: The role of planning, financial literacy, and housing wealth / Journal of Monetary Economics 54 : 205~224

[journal] Mayer, R. C. / 1995 / An Integrative Model of Organizational Trust / Academy of Management Review 20 : 709~734

[journal] Prati, G. / 2011 / A social-cognitive model of pandemic influenza H1N1 risk perception and recommended behaviors in Italy / Risk Analysis 31 (4) : 645~650

[journal] Shepperd, J. A. / 2002 / Exploring the cause of comparative optimism / Psychological Belgica 42 : 65~98

[journal] Slovic, P / 1987 / Perception of risk / Science 236 : 280~285

[journal] Slovic, P. / 1984 / Behavioral decision theory perspectives on risk and safety / Acta Psychologica 56 : 183~203

[journal] Verbeke, W. / 1999 / Health communication and consumer behavior on meat in Belgium: From BSE until dioxin / Journal of Health Communication 4 (4) : 345~357
KCI Citation (8)

KJC Korea
Journal Central

Statistics

Tools