Factors and issues affecting electronic insurance adoption in an emerging market
-
DOIhttp://dx.doi.org/10.21511/ins.14(1).2023.05
-
Article InfoVolume 14 2023, Issue #1, pp. 46-58
- 333 Views
-
289 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study examines the factors and issues affecting the adoption of electronic insurance (EI) in the Jordanian insurance sector. The methodology of the study is based on convenience sampling, thus, the sample consists of 175 respondents familiar with E-services, with different backgrounds, professions, businesses, income groups, sectors, and regions. Questionnaires were distributed and disseminated electronically using SurveyMonkey. The study employs both descriptive and ANOVA analyses to analyze the responses. The results show that EI promotes sustainability, reduces costs, saves time and holds some operational benefits beneath. The ANOVA results show that the impact of income and age on sustainability, cost-effectiveness, and operational benefits is significant at least at the 5% significance level. Respondents are also aware that EI may involve issues and challenges related to security and privacy, customer-related issues such as lack of knowledge about repositories, and insurer-related issues such as data shifting. The ANOVA results indicate that gender affects customers’ perceptions of EI adoption regarding customer-related issues; its effect is significant at the 5% level of significance. On the other hand, age and income level are important factors that shape respondents’ perceptions of EI in Jordan. Age is only significant for security-related issues, and income level is a deciding factor in insurer-related issues; their effect is strong and highly significant at the 5% and 1% levels, respectively.
- Keywords
-
JEL Classification (Paper profile tab)G22, G52, L86
-
References31
-
Tables9
-
Figures0
-
- Table 1. Demographic profile of respondents*
- Table 2. Summary of various factors affecting EI adoption in Jordan (20 statements) covering the dimensions of sustainability, cost-effectiveness, and operational benefit
- Table 3. Summary of the responses to various issues and challenges in EI in Jordan (14 statements) covering the dimensions of security, customer, and insurer-related issues
- Table 4. Analysis of Variance (ANOVA) between Gender variable and customer perceptions of EI
- Table 5. Analysis of Variance (ANOVA) between Age variable and customer perceptions of EI
- Table 6. Analysis of Variance (ANOVA) between Income level variable and customer perceptions of EI
- Table 7. Analysis of Variance (ANOVA) between Gender variable and perceived issues in using EI
- Table 8. Analysis of Variance (ANOVA) between Age variable and perceived issues in using EI
- Table 9. Analysis of Variance (ANOVA) between Income level variable and perceived issues in using EI
-
- Aarabi, N., & Bromideh, A. A. (2006). The Impact of e-Commerce on the Iranian Insurance Companies (Master’s Thesis).
- AbuAkel, S. A., & Ibrahim, M. (2022). The Factors Influencing E-Filing Adoption Among Jordanian Firms: The Moderating Role of Trust. Journal of Positive School Psychology, 6(4), 8221-8231.
- Afande, F. O. (2015). Value of E-Business to Insurance Firms in Kenya. Journal of Information Engineering and Applications, 5(5), 23-32.
- Alshamaileh, Y., Zamzeer, M., Alsawalqah, H., & Alqudah, A. (2017). Understanding the determinants of enterprise resource planning adoption in Jordan. 8th International Conference on Information Technology (ICIT). Amman, Jordan.
- Anouze, A. L. M., & Alamro, A. S. (2020). Factors affecting intention to use e-banking in Jordan. International Journal of Bank Marketing, 38(1), 86-112.
- Arora, A. (2003). E-Insurance: Analysis of the Impact and Implications of Ecommerce on the Insurance Industry (Master’s Thesis). London: Cass Business School Faculty of Actuarial Science & Statistics.
- Bromideh, A. A. (2012). Factors affecting customer E-readiness to embrace auto E-insurance in Iran. Journal of Internet Banking and Commerce, 17(1), 1-12.
- Central Bank of Jordan. (2016). Annual report 2016. Together we plan our success.
- Central Bank of Jordan. (2017). Annual report 2017.
- Chapagai, S. (2022). Opportunities and challenges of e-commerce to customers: Comparative analysis of Nepal and Finland (Master’s Thesis). Kokkola: Centria University of Applied Sciences.
- Hinton, M., & Barnes, D. (2005). Towards a framework for evaluating the business process performance of e-business investments. International Journal of Business Performance Management, 7(1), 87-99.
- Hossinpour, M., Hasanzade, M., & Feizi, M. (2014). The Impact of E-marketing on Life and Investment Insurance Sales with emphasis on internet. Kuwait Chapter of Arabian Journal of Business and Management Review, 3(8), 235-245.
- Jaradat, Z., Al-Dmour, A., Alshurafat, H., Al-Hazaima, H., & Al Shbail, M. O. (2022). Factors influencing business intelligence adoption: evidence from Jordan. Journal of Decision Systems, 1-21.
- Jordan Insurance Federation. (2018). Statistical Bulletin 2018.
- Jordinvest. (2016). The Jordanian Insurance Sector (Sector report). October 17th 2016.
- Keivani, F. S., Almasi, M. R., Sourkouhi, Z. K., Makouei, S., & Bayat, M. (2013). An Investigation of the Internet Effects on Business. IOSR Journal of Business and Management, 13(6), 96-99.
- Khan, S. (2022). Challenges and Opportunities of E-Commerce: A Contemporary Context of Pakistan after COVID-19. Paper presented at 30th International RAIS Conference on Social Sciences and Humanities (7-15). Washington DC, USA.
- KPMG. (2018). Insurance technology: Progress on digital strategies. Global CEO Outlook, Insurance data, KPMG International.
- Lee, S. M., & Cata, T. (2005). Critical Success Factors of Web-Based E-Service: The Case of E-Insurance. International Journal of E-Business Research, 1(3), 21-40.
- Maragia, A. (2016). E-commerce adoption by insurance companies in Kenya (Master’s Thesis). Nairobi: School of Computing and Informatics, University of Nairobi.
- Pahuja, A., & Chitkara S. (2016). Perceptual exploration of factors and issues affecting adoption of E-insurance. Case Studies in Business and Management, 3(1), 99-112.
- Phichitchaisopa, N., & Naenna, T. (2013). Factors Affecting the Adoption of Healthcare Information Technology. EXCLI Journal, 12(1), 413-436.
- Puelz, R. (2010). Technology’s Effect On Property – Casualty Insurance Operations. Risk Management And Insurance Review, 13(1), 85-109.
- Raghunath, A., & Panga, M. D. (2013). Problem and Prospects of E-Commerce. International Journal of Research and Development – A Management Review, 2(1), 59-68.
- Salehi, M., & Alipour, M. (2010). E-Banking in Emerging Economy: Empirical Evidence of Iran. International Journal of Economics and Finance, 2(1), 201-209.
- Sapa, S. G., Phunde, S. B., & Godbole, M. R. (2014). Impacts of ICT Application on the Insurance Sector (E-Insurance). Journal of Management and Research, 3(1), 311-320.
- Stanković, J., Stanković, J. Z., & Tomić, Z. (2022). Factors Affecting Digital Transformation of Insurance in the Republic of Serbia. Economic Themes, 60(1), 133-149.
- Tripathi, J. P., & Khan, F. M. (2016). Problems and Prospects of E-Commerce in India. IOSR Journal of Business and Management, 18(1), 54-58.
- Turban, E., King, D., Lee, J., Warkentin, M., Chung, H. M., & Chung, M. (2002). Electronic Commerce 2002: A Managerial Perspective. Prentice-Hall.
- Waseem, A., Rashid, Y., Warraich, M. A., Sadiq, I., & Shaukat, Z. (2019). Factors Affecting E-Commerce Potential of Any Country Using Multiple Regression Analysis. Journal of Internet Banking and Commerce, 24(2), 1-28.
- Yao, J. (2004). Ecommerce adoption of insurance companies in New Zealand. Journal of Electronic Commerce Research, 5(1), 54-61.