Nghiên cứu: A Study On The Buying Behaviour Of Motor Insurance In Yangon

A Deep Dive into Motor Insurance Buying Behaviour in Yangon: An Academic Review

Introduction

This academic review delves into the research paper, “A Study on the Buying Behaviour of Motor Insurance in Yangon,” authored by Mya Pyie Sone and submitted to the Yangon University of Economics in March 2023. The study investigates the factors influencing consumers’ decisions when purchasing motor insurance within Yangon, Myanmar. This is a particularly relevant topic in a rapidly motorizing economy where road safety and financial security are growing concerns. The study utilizes a mixed-methods approach, combining descriptive statistics and a stimuli-response model to provide a holistic understanding of consumer behaviour in this specific market. This review will summarise the study’s methodology, findings, and implications for both public and private sector stakeholders in Myanmar’s developing insurance industry.

Insurance Fundamentals and Consumer Behaviour

Core Concepts of Insurance

The study correctly emphasizes that insurance functions by transferring risk from individuals to an insurance company, which pools premiums from many to cover the losses of a few. Insurance, at its core, is a risk management tool that mitigates the financial impact of unforeseen events (Outreville, 1998). As previously established, insurance transforms potential large, uncertain losses into smaller, predictable expenses (premiums).

Consumer Behaviour and Decision-Making Models

The research thoroughly discusses various traditional and contemporary consumer behaviour https://luanvanaz.com/khai-niem-hanh-vi.html models, demonstrating an understanding of the complex decision-making processes consumers undergo. The use of the stimuli-response model (also known as the “black box” model) is particularly pertinent to understanding how external factors (e.g., marketing, regulations) and internal factors (e.g., personal values, financial situation) interact to influence purchase decisions. This model aligns well with the study’s aim to identify the drivers behind motor insurance adoption in Yangon.

Overview of Myanmar’s Motor Insurance Market

Evolution of the Market

The historical context provided in the study is crucial for interpreting the survey results. Myanmar’s insurance sector has undergone significant changes in recent years, including the opening of the market to foreign investment and the development of new regulatory frameworks. This liberalization is creating a more competitive landscape and expanding the availability of motor insurance products.

Regulatory Landscape

The study adequately outlines the primary laws governing the insurance industry in Myanmar, including the Myanmar Insurance Law of 1993 and the Insurance Business Law of 1996 (as amended in 2015). These laws establish the regulatory framework for both state-owned and private insurance companies, covering aspects such as licensing, capital requirements, and claims handling. The research also mentions the Compulsory Motor Third-Party Liability (MTPL) Insurance Rules, highlighting the government’s efforts to ensure basic financial protection for road accident victims.

Challenges and Opportunities

The review notes that the COVID-19 pandemic had a significant impact on Myanmar’s insurance sector, leading to a decline in premium volumes. However, the study also points out the long-term growth potential of the market, driven by factors such as increasing motorization, rising incomes, and greater awareness of insurance benefits.

Analysis of Buying Behaviours

Demographic Profile of Respondents

The study uses a well-defined survey methodology and sampling technique https://luanvanaz.com/cac-phuong-phap-chon-mau-trong-qua-trinh-lam-luan-van.html to collect data from 321 respondents in Yangon. The demographic profile of the respondents reveals that the majority are male, married, and between the ages of 31 and 40, with a graduate-level education and a moderate to high monthly income. This demographic is reflective of Yangon’s urban population, where car ownership is more prevalent among middle-class and upper-class individuals.

Factors Influencing Purchase Decisions

The key findings of the survey reveal that the primary motivation for purchasing motor insurance in Yangon is to transfer the financial risks associated with traffic accidents. This suggests that consumers are increasingly aware of the potential financial burden of accidents and view insurance as a means of mitigating this risk. Furthermore, the study finds that the reputation of the insurance company and the service quality https://luanvanaz.com/mot-so-nhan-to-anh-huong-den-chat-luong-phuc-vu.html of its agents are highly influential factors in the purchase decision. This highlights the importance of trust and personal relationships in Myanmar’s insurance market, where consumers may rely more on word-of-mouth and agent interactions than on purely rational considerations such as price.

Comparative Analysis

The study also draws a comparison of these finding with the results of other related studies and research in the region, such as the one conducted by Warodom Techasurin, Chompu Nuangjamnong, and Kitikorn Dowpiset in Bangkok on factors influencing consumer decision to buy used car insurance in Bangkok

Conclusions and Recommendations

The research offers valuable insights into the buying behaviour of motor insurance consumers in Yangon, Myanmar. It underscores the importance of factors such as risk awareness, company reputation, and agent service quality in driving purchase decisions. The findings suggest that insurance companies should focus on building trust and providing personalized service to attract customers in this market.
In summary, the study conducted by Mya Pyie Sone has significant practical implications for stakeholders in Myanmar’s motor insurance industry. By understanding the key drivers behind consumer purchase decisions, insurance companies can develop targeted marketing strategies, improve service quality, and enhance their overall reputation.

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