Browse > Article
http://dx.doi.org/10.14400/JDC.2014.12.2.211

An Empirical Study on the Determinants of Trust for the Insurance Industry : a case of China  

Nam, Sang-Wook (Dept. of Finance and Insurance, Seowon University)
Publication Information
Journal of Digital Convergence / v.12, no.2, 2014 , pp. 211-221 More about this Journal
Abstract
The study aims to estimate the determinants of policyholder's trust for the Chinese insurance industry by structural equation model. In particular, differences in determinants of trust among Chinese life insurance and auto insurance were derived from the latent mean and multi group analysis. The result shows the most effective determinants of trust were honesty, followed by credibility which shows the compensation ability of insurance company. However, benevolence is not influence statistically on the determinants of trust of both life insurance and auto insurance. Moreover, the policyholder's trust for the insurance industry was later extended to relationship commitment such as renewal and recommendation intentions. Especially, the linkage between the level of trust and relationship commitment was the strongest in life insurance than auto insurance. Even though the result is differ based on types of insurance, in order for the insurance industry to grow stably it is importance to get trust from policyholder.
Keywords
Insurance industry; China; Trust; Relationship commitment; Life Insurance; Auto Insurance;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Crosby L. A., K. R. Evans and D. Cowles, Relationship quality in services selling: an interpersonal influence perspective", Journal of Marketing Vol.54, pp. 68-81, 1990.   DOI   ScienceOn
2 Gambetta, D, Trust: Making and Breaking Cooperative Relations. New York : Basil Blackwell, 1998.
3 Gill, A. S., A. B. Flaschner and M. Shachar, Factors that affect the trust of business clients in their banks", International Journal of Bank Marketing Vol. 24, pp. 384-405, 2006.   DOI   ScienceOn
4 Mayer, R.C., J. H. Davis and F. D. Schoorman, An integrative model of organizational trust, Academy of Management Review Vol. 20, pp. 709-734, 1995.
5 Hu, L. and P. M. Bentler, Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives, Structural Equation Modeling Vol. 6 pp. 1-55, 1999.   DOI   ScienceOn
6 Jung, Hongjoo, Joyce Chen and Hongmu Lee, Inter- national Comparison of Trust Level on Insurance: focusing on Korea, Japan, Taiwan, APRIA Eleventh Annual Conference, 2007.
7 Luhmann,. N.,Familiarity, Confidence, Trust: Problems and Alternatives. in D. G.,1988.
8 Moorman, C., G. Zaltman and R. Deshpande, Relationships between providers and users of market research : The dynamics of trust within and between organizations, Journal of Marketing Research Vol. XXIX, pp. 314-328, 1992.
9 Moorman, C., R. Deshpande and G. Zaltman, Factors Affecting Trust in Market Research Relationships, Journal of Marketing Vol 57, pp. 81-101, 1993.   DOI   ScienceOn
10 Morgan, R. M. and S. D. Hunt, The Commitment- Trust Theory of Relationship Marketing, Journal of Marketing Vol 58, pp. 20-38, 1994.
11 Browne, M. W. and R. Cudeck. Alternative ways of assessing model fit. In K. A. Bollen & J. S. Long (Eds.), Testing structural equation models, pp. 136-162, 1993.
12 Coloquitt, J. A., B. A. Scott and J. A. LePine, Trust, Trustwothiness and Trust Propensity: A Meta -Analytic Test of Their Unique Relationships with Risk Taking and Job Performance, Journal of Applied Psychology Vol 92, pp. 909-927, 2007   DOI   ScienceOn
13 Cooper, R. W. and G. L. Frank, Effects of the Recession and Slow Recovery on Ethics and Trust in the Insurance Industry, Journal of Financial Service Professionals Vol 66, pp. 51-62, 2012
14 Coulter, K. S. and R. A. Coulter, The effects of industry knowledge on the development of trust in service relationship, International Journal of Research in Marketing Vol. 20, pp. 31-43, 2003   DOI   ScienceOn
15 Nam, Sang Wook, A Comparative Study on the Trust Level of the Life Insurance Industries in Korea, Japan and China, Journal of Korean Insurance Vol. 86, pp. 83-111, 2010.
16 Nam, Sang Wook, Comparison of trust level by size and ownership structure of life insurers : a case of the Korean life insurance industry, Journal of Financial Consumers Vol. 2, pp. 82-105, 2012.
17 Pruitt, D. G., Negotiation Behavior, Academy Press, New York, 1981
18 Schurr, P. H. and T. T. Ozanne, Influences on Exchange Processes: Buyer's Preconceptions of a Seller's Trustworthiness and Bargaining Toughness, Journal of Consumer Research Vol 11, pp. 939-953, 1985.   DOI   ScienceOn
19 Ganesan, S., Determinants of Long-Term Orientation in Buyer-Seller Relationships", Journal of Marketing Vol. 58, pp. 1-19, 1994.