CONSUMER KNOWLEDGE EFFECT ON INTENTION TO PURCHASE LIFE INSURANCE

Authors

  • Nelson Lajuni Faculty of Business, Economics, and Accountancy, Universiti Malaysia Sabah
  • Franklin Hazley Lai Faculty of Business and Management, Universiti Teknologi MARA
  • Stephen Sondoh Jr Faculty of Business, Economics, and Accountancy, Universiti Malaysia Sabah
  • Rosle Mohidin Faculty of Business, Economics, and Accountancy, Universiti Malaysia Sabah

Keywords:

Theory of Planned Behaviour, Intention, Attitude, Civil servant, Malaysia

Abstract

Package as a financial product, life insurance is created to provide protection to the insured individual from the risk of unfavourable events such as sudden death and total disability of the policyholder that may affect the family that depends on the breadwinner in their lives. Though the market shows improvement in penetration, many still do not own life insurance. Statistically speaking 5 out of 10 Malaysians have yet protected themselves of risk in life. This study applied the modified theory of planned behaviour (TPB) mediation which includes direct and indirect effects of consumer knowledge and consumer attitude towards the intention to purchase life insurance. Non-probability purposive sampling was conducted on civil servants here in Sabah, Malaysia (N = 206) to examine their purchasing intention. The data were analysed by using partial least squares structural equation modelling (PLS-SEM) using SmartPLS 3.0. The results found that consumer knowledge and consumer attitude had significant effects on the purchasing intention of life insurance products. The findings provide a better understanding of the roles of consumer knowledge and consumer attitude on civil servants purchasing intention on life insurance products. Future study
should examine how technology such as fintech and Artificial Intelligence will shape the insurance industry, particularly in Malaysia as the world are currently moving towards 4.0 industrial revolution.

Abstrak

Pakej sebagai produk kewangan, insurans hayat diciptakan untuk memberi perlindungan kepada individu yang diinsuranskan dari risiko kejadian yang tidak diingini seperti kematian mendadak dan hilang upaya menyeluruh pemegang polisi yang boleh mempengaruhi keluarga yang bergantung kepada pencari nafkah dalam kehidupan mereka. Walaupun pasaran menunjukkan peningkatan penembusan, masih banyak yang tidak memiliki insurans hayat. Secara statistik, 5 daripada 10 rakyat Malaysia belum melindungi diri dari risiko hidup. Kajian ini mengaplikasikan teori modifikasi perilaku terancang (TPB) yang dimodifikasi yang merangkumi kesan langsung dan tidak langsung pengetahuan pengguna dan sikap pengguna terhadap niat untuk membeli insurans hayat. Persampelan bertujuan bukan bertujuan dilakukan kepada penjawat awam di sini di Sabah, Malaysia (N = 206)
untuk memeriksa niat membeli mereka. Data dianalisis dengan menggunakan pemodelan persamaan struktur kuadrat separa terkecil (PLS-SEM) menggunakan SmartPLS 3.0. Hasil kajian mendapati bahawa pengetahuan pengguna dan sikap pengguna mempunyai pengaruh yang signifikan terhadap niat membeli produk insurans hayat. Penemuan ini memberikan pemahaman yang lebih baik mengenai peranan pengetahuan pengguna dan sikap pengguna terhadap penjawat awam yang ingin membeli produk insurans hayat. Kajian masa depan harus mengkaji bagaimana teknologi seperti fintech dan Artificial Intelligence akan membentuk industri insurans, khususnya di Malaysia ketika dunia sedang menuju revolusi industri 4.0.

Published

2020-12-01

How to Cite

Lajuni, N., Lai, F. H., Stephen Sondoh Jr, & Mohidin, R. (2020). CONSUMER KNOWLEDGE EFFECT ON INTENTION TO PURCHASE LIFE INSURANCE. Labuan E-Journal of Muamalat and Society (LJMS), 14, 69-79. Retrieved from https://jurcon.ums.edu.my/ojums/index.php/LJMS/article/view/2867

Issue

Section

Articles