Issues – 2019, v6, s2, 5


The Journal of Corporate Governance,  Insurance, and Risk Management 2020, Volume 7, Series 1 

Factors Affecting the Perception of Bancassurance: The Case of Malta**

Kelly Agiusb, Simon Grimaa*, Andre Farrugia a

aDepartment of Insurance, Faculty of Economics, Management and Accountancy, University of Malta, Malta b Faculty of Economics, Management and Accountancy, University of Malta, Malta

DOI: http://doi.org/10.51410/JCGIRM2019-2-5

Article Type: Research Paper

A B S T R A C T

A R T I C L E   I N F O

Our aim with this study is to delve into the perception of Maltese nationals on bancassurance to establish the drivers which are influencing the purchase of bancassurance and whether these factors can be used by banks to positively impact Maltese nationals’ perception of bancassurance and hence increase their sales and revenues. In order to establish the perception of Maltese nationals on bancassurance, we applied three areas of Customer Perception Theory namely 1) self-perception 2) price perception and 3) benefit/risk perception. To establish the perception of Maltese nationals on bancassurance, the whole population of Maltese nationals was taken into consideration from which a sample of 384 people was taken. In order to carry out the survey, the authors used questionnaires which included a number of demographic questions. The authors also included a number of statements which were divided into the three sections of the Customer Perception Theory. For these statements, the authors used a five-point Likert scale ranging from strongly disagree to strongly agree where the participants had to rate the statements according to their level of agreement. The authors also included a comment box to allow the participants to express themselves. The study revealed that various factors are stopping Maltese nationals from purchasing insurance products from banks. Advertisements are not motivating Maltese nationals to purchase insurance products from banks, however, they do trust banks and hence they might decide to purchase insurance products from them. The uncertainty of Maltese nationals on the premium charged and whether the costs are reduced when purchasing insurance products from banks shows the lack of knowledge amongst Maltese nationals on bancassurance. On the other hand, the idea of a ‘one-stop-shop’ motivates Maltese nationals to purchase insurance products from banks. This study can serve as guidance for local banks, which are engaged in bancassurance as well as to those banks who intend to engage in bancassurance in the future. This is because this study highlights the factors, which are stopping Maltese nationals from purchasing insurance products from banks. The two main sectors in the financial services industry, which play an important role in the Maltese economy, are the banking and the insurance sectors (Finance Malta, 2018). As far as the authors are aware, this study of the perception of Maltese nationals on bancassurance is the first of its kind conducted in Malta. Hence, other researchers may use Malta as a case study to act as a model to transpose the findings to larger countries.

Keywords: Bancassurance, Perception, Customer Perception Theory, Maltese Nationals, Insurance Products, Banks

*Corresponding authors: Simon.grima@um.edu.mt

Article history: Article Submitted  09-8-2020 Article Accepted    20-09-2019

**This paper is based on a  dissertation submitted by Kelly Agius, supervised by Prof Simon Grima in partial fulfilment of the requirements of the Degree of Bachelor of Commerce (Honours) in Banking and Finance at the University of Malta as at May 2019, entitled ‘A study of the factors impacting the perception of bancassurance in Malta’.

Cite Article (APA): Agius, K., Grima, S., Farrugia, A. 2019. Factors Affecting the Perception of Bancassurance: The Case of Malta. The Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM). 2019, Volume 6, Series 2. pp63-96

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