A study of consumer attitudes and perception of motor insurance in Malta

Abstract

This dissertation examines the consumer attitudes and perceptions which Maltese consumers have towards motor insurance in Malta, as well as analyses which factors play a role in the buying decision of Maltese consumers. As the use of private motor vehicles in Malta increases, the number of traffic accidents being experienced also increases as a consequence. Therefore, this in turn also rises the demand for motor insurance cover. For the purpose of this study quantitative research was carried out, this was done by conducting a survey which was addressed to the consumers of the motor insurance service in Malta. This was done with the aim of determining which factors have the most impact on consumer buying behaviour, and to determine how Maltese motor insurance consumers perceive the service and what their attitudes towards it is. This study shows that the factor which has the most impact on Maltese consumers when buying motor insurance is that of price. Additionally, Maltese consumers are likely to purchase higher levels of protection cover. Furthermore, reference groups play a very important role in the decision-making process, with the majority of consumers choosing the service of an insurance provider which was recommended to them by a member of their reference group. This study also shows that Maltese consumers are loyal towards their insurance provider, and also have a high level of trust for their insurance provider. Hence, this means that Maltese consumers have a good perception of motor insurance. However, attitudes towards the service are rather mixed, with the main issue uncovered being that the claims process is too long. In view of this, various suggestions have been made on how the motor insurance service in Malta can be improved further so that such attitudes can be improved.