Insurance Purchasing Behavior during Covid-19 Pandemic in Lao PDR

Abstract

Abstract

            From the previous years (1990 – 2019), insurance market in Lao PDR had been growing steadily with a traditional way of receiving and purchasing insurance; further, health insurance and life insurance were not familiar to local customers. Obviously, health insurance and life insurance were mostly consumed by foreigner resided in Laos. However, the present of Fintech, internet accessibility, and mobile technology have changed people’s life style; today, people can buy or renew their insurance through online web page and mobile application. Besides, the COVID-19 pandemic and severe taken longer than two years of spreading, insurance market launched COVID-19 insurance and gained consumers interest. The circumstance and factors related make change in insurance purchasing behaviors. Thus, this research focused on insurance purchasing behaviors during COVID-19 pandemic in Lao PDR to explore consumers’ insurance behaviors and potential of product acceptance when include COVID-19 protection.  

            The online questionnaire was used to collect data and there was 423 respondents. The research applied descriptive statistics analyzed data, percentage, mean, standard deviation to analyses. The study found that most of respondents are male, married, living in city at the central part of Laos, having less than five family members, 51% having income less than 30,000,000 kip per annum. Moreover, the study shows the number of current insurers is 57% of the whole respondents, and only ten percent decided to obtain a new insurance policy during COVID-19. The result also found that COVID-19 insurance interest and become the second popular choice during COVID-19. The insurers would like to buy a new insurance from their current insurance company through the insurance agency, which is the traditional channel. Moreover, they do receive the insurance information from insurance agency, banker, and online platform. However, only ten percent of existing insurers buy additional new insurance during COVID-19; yet, COVID-19 had convince consumer to concern more on their beloved people’s health care, include themselves.

            On the other hands, respondents who decide not to buy any insurance policy emphasis the reasons they do not buy insurance are insufficient income, increasing in expenditures and reducing in income, criticism on the protection of the insurance is not motivated enough, information and advertising are not attractive, and usefulness of insurance is low compare to premium they have to pay.