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Willingness to pay for travel insurance as a risk reduction behavior: health-related risk perception after the outbreak of COVID-19

Author

Listed:
  • Yeongbae Choe

    (Gachon University)

  • Hyesun Kim

    (Woosong University)

  • Youngjoon Choi

    (Ewha Womans University)

Abstract

This study aims to identify the effects of health-related risk perception and sociodemographic characteristics on the willingness to pay (WTP) for travel insurance as a risk reduction behavior following the outbreak of COVID-19. Through the application of a double-bounded dichotomous choice contingent valuation method, this study found several determinants for travel insurance price (i.e., risk perception toward traveling, perception about the influence of COVID-19, past travel insurance purchase experience, age, and education). The mean WTP was estimated to be approximately KRW 11,700 (USD 10.23). Several theoretical and managerial implications regarding risk perception and travel insurance are discussed.

Suggested Citation

  • Yeongbae Choe & Hyesun Kim & Youngjoon Choi, 2022. "Willingness to pay for travel insurance as a risk reduction behavior: health-related risk perception after the outbreak of COVID-19," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 445-467, September.
    • Handle: RePEc:spr:svcbiz:v:16:y:2022:i:3:d:10.1007_s11628-022-00479-8
    DOI: 10.1007/s11628-022-00479-8
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    References listed on IDEAS

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