IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v183y2022ics004016252200419x.html
   My bibliography  Save this article

Black box technology, usage-based insurance, and prediction of purchase behavior: Evidence from the auto insurance sector

Author

Listed:
  • Alfiero, Simona
  • Battisti, Enrico
  • Ηadjielias, Elias

Abstract

Disruptive technologies are changing the car insurance sector, with behavioral and adaptive impacts for individuals as well as organizations. An innovative factor in this industry is connected to telematics and concerns the installation of a small device called a ‘black box’, which is becoming more and more widespread, with consequent financial impacts on the insurance policy market. However, the psychological drivers that underpin consumers' intentions to purchase black box auto insurance are scarcely researched. To fill this gap, we used a mixed-methods sequential exploratory design to analyze a sample of 757 consumers. Our results, obtained through PLS-SEM, highlight that attitude, awareness, subjective norms, risk perception, and trust have a significant positive influence on consumers' intentions to purchase black box technology auto insurance, while the effect of perceived behavioral control is not supported. Furthermore, the blindfolding analysis underscores the predictive relevance of the model. Our results have important implications for auto insurance companies interested to better understand consumers' needs and motives in relation to the purchase of black box insurance.

Suggested Citation

  • Alfiero, Simona & Battisti, Enrico & Ηadjielias, Elias, 2022. "Black box technology, usage-based insurance, and prediction of purchase behavior: Evidence from the auto insurance sector," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:tefoso:v:183:y:2022:i:c:s004016252200419x
    DOI: 10.1016/j.techfore.2022.121896
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004016252200419X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2022.121896?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roel Verbelen & Katrien Antonio & Gerda Claeskens, 2018. "Unravelling the predictive power of telematics data in car insurance pricing," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 67(5), pages 1275-1304, November.
    2. Llopis-Albert, Carlos & Rubio, Francisco & Valero, Francisco, 2021. "Impact of digital transformation on the automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    3. Donatella Porrini & Giulio Fusco & Cosimo Magazzino, 2020. "Black boxes and market efficiency: the effect on premiums in the Italian motor-vehicle insurance market," European Journal of Law and Economics, Springer, vol. 49(3), pages 455-472, June.
    4. Sebastian Derikx & Mark de Reuver & Maarten Kroesen, 2016. "Can privacy concerns for insurance of connected cars be compensated?," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(1), pages 73-81, February.
    5. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    6. Lee, Sang-Gun & Trimi, Silvana & Kim, Changsoo, 2013. "The impact of cultural differences on technology adoption," Journal of World Business, Elsevier, vol. 48(1), pages 20-29.
    7. Battisti, Enrico & Giachino, Chiara & Iaia, Lea & Stylianou, Ioanna & Papatheodorou, Andreas, 2022. "Air transport and mood in younger generations: The role of travel significance and COVID-19," Journal of Air Transport Management, Elsevier, vol. 103(C).
    8. Maizaitulaidawati Md Husin & Asmak Ab Rahman, 2016. "Predicting intention to participate in family takaful scheme using decomposed theory of planned behaviour," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(12), pages 1351-1366, December.
    9. Muhammad Mehedi Masud & Noor Azina Ismail & Mahfuzur Rahman, 2020. "A conceptual framework for purchase intention of sustainable life insurance: a comprehensive review," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 14(3), pages 351-373.
    10. Battisti, Enrico & Alfiero, Simona & Leonidou, Erasmia, 2022. "Remote working and digital transformation during the COVID-19 pandemic: Economic–financial impacts and psychological drivers for employees," Journal of Business Research, Elsevier, vol. 150(C), pages 38-50.
    11. Curtale, Riccardo & Liao, Feixiong & van der Waerden, Peter, 2021. "User acceptance of electric car-sharing services: The case of the Netherlands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 266-282.
    12. Martin Eling & Mirko Kraft, 2020. "The impact of telematics on the insurability of risks," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 21(2), pages 77-109, April.
    13. McLeay, Fraser & Olya, Hossein & Liu, Hongfei & Jayawardhena, Chanaka & Dennis, Charles, 2022. "A multi-analytical approach to studying customers motivations to use innovative totally autonomous vehicles," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Arun, Thankom & Bendig, Mirko & Arun, Shoba, 2012. "Bequest Motives and Determinants of Micro Life Insurance in Sri Lanka," World Development, Elsevier, vol. 40(8), pages 1700-1711.
    15. Christofi, Michael & Vrontis, Demetris & Thrassou, Alkis & Shams, S.M. Riad, 2019. "Triggering technological innovation through cross-border mergers and acquisitions: A micro-foundational perspective," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 148-166.
    16. Benedikt Lebek & Jörg Uffen & Markus Neumann & Bernd Hohler & Michael H. Breitner, 2014. "Information security awareness and behavior: a theory-based literature review," Management Research Review, Emerald Group Publishing Limited, vol. 37(12), pages 1049-1092, November.
    17. Alma Cohen, 2005. "Asymmetric Information and Learning: Evidence from the Automobile Insurance Market," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 197-207, May.
    18. Das, Gopal & Agarwal, James & Malhotra, Naresh K. & Varshneya, Geetika, 2019. "Does brand experience translate into brand commitment?: A mediated-moderation model of brand passion and perceived brand ethicality," Journal of Business Research, Elsevier, vol. 95(C), pages 479-490.
    19. Mercedes Ayuso & Montserrat Guillen & Jens Perch Nielsen, 2019. "Improving automobile insurance ratemaking using telematics: incorporating mileage and driver behaviour data," Transportation, Springer, vol. 46(3), pages 735-752, June.
    20. Ma, Yu-Luen & Zhu, Xiaoyu & Hu, Xianbiao & Chiu, Yi-Chang, 2018. "The use of context-sensitive insurance telematics data in auto insurance rate making," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 243-258.
    21. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    22. Nemanja Milanović & Miloš Milosavljević & Slađana Benković & Dušan Starčević & Željko Spasenić, 2020. "An Acceptance Approach for Novel Technologies in Car Insurance," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    23. Dash, Ganesh & Paul, Justin, 2021. "CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    24. Desyllas, Panos & Sako, Mari, 2013. "Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance," Research Policy, Elsevier, vol. 42(1), pages 101-116.
    25. Shimp, Terence A & Kavas, Alican, 1984. "The Theory of Reasoned Action Applied to Coupon Usage," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(3), pages 795-809, December.
    26. Hallak, Rob & Assaker, Guy & O’Connor, Peter & Lee, Craig, 2018. "Firm performance in the upscale restaurant sector: The effects of resilience, creative self-efficacy, innovation and industry experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 229-240.
    27. Kamolsook, Apinya & Badir, Yuosre F. & Frank, Björn, 2019. "Consumers' switching to disruptive technology products: The roles of comparative economic value and technology type," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 328-340.
    28. Giacosa, Elisa & Culasso, Francesca & Crocco, Edoardo, 2022. "Customer agility in the modern automotive sector: how lead management shapes agile digital companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    29. Martin Eling & Martin Lehmann, 2018. "The Impact of Digitalization on the Insurance Value Chain and the Insurability of Risks," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(3), pages 359-396, July.
    30. Yee-Loong Chong, Alain & Liu, Martin J. & Luo, Jun & Keng-Boon, Ooi, 2015. "Predicting RFID adoption in healthcare supply chain from the perspectives of users," International Journal of Production Economics, Elsevier, vol. 159(C), pages 66-75.
    31. Ogenyi Ejye Omar & Nana Owusu-Frimpong, 2007. "Life Insurance in Nigeria: An Application of the Theory of Reasoned Action to Consumers' Attitudes and Purchase Intention," The Service Industries Journal, Taylor & Francis Journals, vol. 27(7), pages 963-976, October.
    32. Rey, Andrea & Panetti, Eva & Maglio, Roberto & Ferretti, Marco, 2021. "Determinants in adopting the Internet of Things in the transport and logistics industry," Journal of Business Research, Elsevier, vol. 131(C), pages 584-590.
    33. Santoro, Gabriele & Vrontis, Demetris & Thrassou, Alkis & Dezi, Luca, 2018. "The Internet of Things: Building a knowledge management system for open innovation and knowledge management capacity," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 347-354.
    34. Donatella Porrini, 2015. "Risk Classification Efficiency and the Insurance Market Regulation," Risks, MDPI, vol. 3(4), pages 1-10, September.
    35. Toledo, Galit & Shiftan, Yoram, 2016. "Can feedback from in-vehicle data recorders improve driver behavior and reduce fuel consumption?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 194-204.
    36. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    37. Shirley Taylor & Peter A. Todd, 1995. "Understanding Information Technology Usage: A Test of Competing Models," Information Systems Research, INFORMS, vol. 6(2), pages 144-176, June.
    38. Dawn Branley-Bell & Yolanda Gómez & Lynne Coventry & José Vila & Pam Briggs, 2021. "Developing and Validating a Behavioural Model of Cyberinsurance Adoption," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    39. Sarra, Annalina & Di Zio, Simone & Cappucci, Marianna, 2015. "A quantitative valuation of tourist experience in Lisbon," Annals of Tourism Research, Elsevier, vol. 53(C), pages 1-16.
    40. Lu, Yang & Papagiannidis, Savvas & Alamanos, Eleftherios, 2018. "Internet of Things: A systematic review of the business literature from the user and organisational perspectives," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 285-297.
    41. Wells, Peter & Wang, Xiaobei & Wang, Liqiao & Liu, Haokun & Orsato, Renato, 2020. "More friends than foes? The impact of automobility-as-a-service on the incumbent automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    42. Tian , Xiaoguang & Prybutok, Victor & Mirzaei, Fouad & Dinulescu, Catalin C., 2020. "Millennials Acceptance of Insurance Telematics: An Integrative Empirical Study," American Business Review, Pompea College of Business, University of New Haven, vol. 23(1), pages 156-181, May.
    43. Enrico Battisti & Michael Christofi & Demetris Vrontis & Niccolò Nirino, 2021. "Past, present, and future of mergers and acquisitions in the MENA region: a systematic review and integrative framework," International Studies of Management & Organization, Taylor & Francis Journals, vol. 51(3), pages 276-296, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Zhenkun & Jiang, Ping & De Bock, Koen W. & Wang, Jianzhou & Zhang, Lifang & Niu, Xinsong, 2024. "Extreme gradient boosting trees with efficient Bayesian optimization for profit-driven customer churn prediction," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    2. Cosma, Simona & Rimo, Giuseppe, 2024. "Redefining insurance through technology: Achievements and perspectives in Insurtech," Research in International Business and Finance, Elsevier, vol. 70(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vikas Chauhan & Rohit Joshi & Vipin Choudhary, 2024. "Understanding intention to adopt telematics-based automobile insurance in an emerging economy: a mixed-method approach," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(3), pages 1017-1036, September.
    2. Yiming Shao & Zhugen Wang & Zhiwei Zhou & Haojing Chen & Yuanlong Cui & Zhenghuan Zhou, 2022. "Determinants Affecting Public Intention to Use Micro-Vertical Farming: A Survey Investigation," Sustainability, MDPI, vol. 14(15), pages 1-26, July.
    3. Rajak, Manindra & Shaw, Krishnendu, 2021. "An extension of technology acceptance model for mHealth user adoption," Technology in Society, Elsevier, vol. 67(C).
    4. Alesanco-Llorente, María & Reinares-Lara, Eva & Pelegrín-Borondo, Jorge & Olarte-Pascual, Cristina, 2023. "Mobile-assisted showrooming behavior and the (r)evolution of retail: The moderating effect of gender on the adoption of mobile augmented reality," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Donatella Porrini & Giulio Fusco & Cosimo Magazzino, 2020. "Black boxes and market efficiency: the effect on premiums in the Italian motor-vehicle insurance market," European Journal of Law and Economics, Springer, vol. 49(3), pages 455-472, June.
    6. Xu, Zeshui & Ge, Zijing & Wang, Xinxin & Skare, Marinko, 2021. "Bibliometric analysis of technology adoption literature published from 1997 to 2020," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    7. Hasan, Rajibul & Lowe, Ben & Petrovici, Dan, 2020. "Consumer adoption of pro-poor service innovations in subsistence marketplaces," Journal of Business Research, Elsevier, vol. 121(C), pages 461-475.
    8. Paul Juinn Bing Tan, 2013. "Applying the UTAUT to Understand Factors Affecting the Use of English E-Learning Websites in Taiwan," SAGE Open, , vol. 3(4), pages 21582440135, October.
    9. Garima Malik & A. Sajeevan Rao, 2019. "Extended expectation-confirmation model to predict continued usage of ODR/ride hailing apps: role of perceived value and self-efficacy," Information Technology & Tourism, Springer, vol. 21(4), pages 461-482, December.
    10. Scott, Stephanie & Hughes, Paul & Hodgkinson, Ian & Kraus, Sascha, 2019. "Technology adoption factors in the digitization of popular culture: Analyzing the online gambling market," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    11. Cabrera-Sánchez, Juan-Pedro & Villarejo-Ramos, à ngel F., 2020. "Acceptance and use of big data techniques in services companies," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    12. Cowan, Kelly R. & Daim, Tugrul U., 2011. "Review of technology acquisition and adoption research in the energy sector," Technology in Society, Elsevier, vol. 33(3), pages 183-199.
    13. Chia-Chien Hsu & Brian Sandford & Chia-Ju Ling & Ching-Torng Lin, 2021. "Can the Unified Theory of Acceptance and Use of Technology (UTAUT) Help Explain Subjective Well-Being in Senior Citizens due to Gateball Participation?," IJERPH, MDPI, vol. 18(17), pages 1-15, August.
    14. Nemanja Milanović & Miloš Milosavljević & Slađana Benković & Dušan Starčević & Željko Spasenić, 2020. "An Acceptance Approach for Novel Technologies in Car Insurance," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    15. Sanjeev Verma, 2015. "Harnessing the Benefit of Social Networking Sites for Intentional Social Action: Determinants and Challenges," Vision, , vol. 19(2), pages 104-111, June.
    16. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Mohd Zaini Abd Karim, 2017. "Islamic home financing in Pakistan: a SEM-based approach using modified TPB model," Housing Studies, Taylor & Francis Journals, vol. 32(8), pages 1156-1177, November.
    17. Al-Qeisi, Kholoud & Dennis, Charles & Alamanos, Eleftherios & Jayawardhena, Chanaka, 2014. "Website design quality and usage behavior: Unified Theory of Acceptance and Use of Technology," Journal of Business Research, Elsevier, vol. 67(11), pages 2282-2290.
    18. Chua Chang Jin & Lim Chee Seong & Aye Aye Khin, 2019. "Factors Affecting the Consumer Acceptance towards Fintech Products and Services in Malaysia," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 59-65, January.
    19. Yang, Byunghwa & Kim, Youngchan & Yoo, Changjo, 2013. "The integrated mobile advertising model: The effects of technology- and emotion-based evaluations," Journal of Business Research, Elsevier, vol. 66(9), pages 1345-1352.
    20. Guych Nuryyev & Yu-Ping Wang & Jennet Achyldurdyyeva & Bih-Shiaw Jaw & Yi-Shien Yeh & Hsien-Tang Lin & Li-Fan Wu, 2020. "Blockchain Technology Adoption Behavior and Sustainability of the Business in Tourism and Hospitality SMEs: An Empirical Study," Sustainability, MDPI, vol. 12(3), pages 1-21, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:183:y:2022:i:c:s004016252200419x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.