Survey‐based insights from choice‐based conjoint analyses on customer preferences for company characteristics of life insurers

Moritz Hanika and Nadine Gatzert

Risk Management and Insurance Review, 2024, vol. 27, issue 4, 451-482

Abstract: The aim of this paper is to investigate customer preferences for certain company characteristics when purchasing life insurance products. We focus on ratings provided by aggregators, namely financial strength, sustainability, service quality, and type of customer touchpoint (online vs. in person), while also studying potential product‐specific differences between annuities and term life policies. Toward this end, we conduct two choice‐based conjoint analyses with 529 and 543 German respondents to estimate individual preference structures. Consistent with economic expectations, we observe statistically significant higher preferences for better ratings of the life insurer, which also materialize in the respondents' marginal willingness to pay. One main finding is that customer preferences in our sample are asymmetric, with a strong focus on avoiding below‐average ratings. Furthermore, for both annuities and term life insurances, the relatively most important life insurer attribute for customers is financial strength, followed by service quality, sustainability, and type of customer touchpoint.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/rmir.12291

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:27:y:2024:i:4:p:451-482

Access Statistics for this article

Risk Management and Insurance Review is currently edited by Mary A. Weiss

More articles in Risk Management and Insurance Review from American Risk and Insurance Association
Bibliographic data for series maintained by Wiley Content Delivery ().