The Significance of Personal Value, Risk Attitude and Trust on Life Insurance Ownership in the Northern Regions of Malaysia

Lim Chee Chee, Tan Suang Sin



This paper examines the relationships of life insurance ownership with personal value, risk attitude and trust among the individuals in the northern regions of Malaysia to enable the undertaking of appropriate actions in promoting life insurance ownership by individuals (residing in the northern regions of Malaysia) who have not owned life insurance yet. A structured questionnaire was used to collect data. Stratified random sampling method was used to approach respondents. The data were subject to binary logistic regression analysis. The major finding shows that only trust is found to have a (positive and) significant relationship with life insurance ownership. Thus, this paper proposes that life insurance agents are required to undergo professional trainings in life insurance selling to minimize the incidents of misconducts among agents. This can promote a greater trust among the prospects in agents and increase the likelihood of owning life insurance. In addition, directions for future research are also highlighted.

Keywords: Personal value; risk attitude; trust; life insurance ownership; Malaysia


Kertas ini mengkaji hubungan pemilikan insurans hayat dengan nilai peribadi, sikap terhadap risiko dan kesediaan mempercayai di kalangan individu di kawasan utara Malaysia supaya tindakan wajar boleh diambil untuk meningkatkan pemilikan insurans hayat di kalangan individu (yang tinggal di kawasan utara Malaysia) yang masih belum memiliki insurans hayat. Soal selidik yang berstruktur digunakan untuk mengutip data. Persampelan berstrata rambang digunakan untuk mendapatkan responden. Data dianalisa menggunakan analisis regresi logistik binar. Penemuan penting kajian menunjukkan hanya kesediaan mempercayai mempunyai hubungan (positif) yang ketara dengan pemilikan insurans hayat. Oleh itu, kertas ini mencadangkan ejen insurans hayat perlu menghadiri latihan profesional berhubung dengan penjualan insurans hayat supaya peristiwa salah laku di kalangan ejen boleh dikurangkan. Ini dapat meningkatkan kepercayaan prospek pada ejen dan meningkatkan pemilikan insurans hayat. Di samping itu, hala tuju untuk penyelidikan pada masa depan juga dicadangkan.

Kata kunci: Nilai peribadi; sikap terhadap risiko; kesediaan mempercayai; pemilikan insurans hayat; Malaysia


Psychographic factors; life insurance ownership; Malaysia; binary logistic regression analysis

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