IDEAS home Printed from https://ideas.repec.org/a/ids/ijpman/v20y2024i3p302-330.html
   My bibliography  Save this article

Antecedents of hidden action problems in the Egyptian automobile insurance market: buyer-supplier relationship perspective

Author

Listed:
  • Eslam Thabet
  • Nazaré Rego
  • Arnt Buvik

Abstract

This paper explores the impact of asymmetric information in an exchange relationship involving pre-screening by insurers, trust, and self-protection provided by different kinds of contracts on hidden action problems in the Egyptian automobile insurance market from two major theoretical perspectives: principle-agent theory and relational-contracting theory. Survey data on 63 relationships between insurers and business policyholders were analysed, demonstrating that asymmetric information is one of the main antecedents of hidden action problems by policyholders. The level of trust between insurers and policyholders, and the level of pre-screening of insurers attenuate hidden action problems by policyholders. Moreover, the study reveals that self-protection attenuates hidden actions more effectively if a co-payment automobile insurance contract is at stake than if a deductible contract was signed. Finally, revealing the dark side of buyer-supplier relationships in insurance confirms the necessity for policyholders to disclose the information of whether they engage in self-protecting actions or not.

Suggested Citation

  • Eslam Thabet & Nazaré Rego & Arnt Buvik, 2024. "Antecedents of hidden action problems in the Egyptian automobile insurance market: buyer-supplier relationship perspective," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 20(3), pages 302-330.
    • Handle: RePEc:ids:ijpman:v:20:y:2024:i:3:p:302-330
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=138968
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    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:ids:ijpman:v:20:y:2024:i:3:p:302-330. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=255 .

    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.