A study on the determinants of demand for travel insurance

Abstract

The market for travel insurance is expanding and will keep on doing so in the near future. In view of this, it is essential to understand the primary factors that influence customer demand for travel insurance. This dissertation will therefore seek to analyse the key determinants of demand for travel insurance among Maltese residents given that this study was based in Malta, which is significant considering the country’s expanding tourism sector. Insight into the factors that influence travel insurance demand in the Maltese market will thus be provided, attempting to fill the gap in literature with regards to travel insurance demand and perceptions of travel insurance in Malta. Apart from this, this dissertation also seeks to examine the apprehensions and attitudes towards travel insurance in the Maltese society and the effect of COVID-19 on the demand for travel insurance. The author collected primary data by means of a self-administered online questionnaire given that there is limited data regarding the determinants of travel insurance demand in Malta. Maltese individuals over the age of 18 were asked to complete a questionnaire which required perspectives from individuals with different backgrounds, demographic and socioeconomic variables. The general findings of this study are that firstly, the majority of Maltese citizens regard travel insurance to be much more useful and common nowadays and consider it worth buying. Another interesting finding was that gender does not have a bearing on how much an individual is willing to pay for travel insurance. Furthermore, the likelihood of obtaining travel insurance following COVID-19 is the same across different employment status groups and the amount of premium willing to be paid is also the same across all employment status groups. Age and Educational Level Achieved were found to be significant determinants of travel insurance demand in Malta. Finally, it was found that following the COVID-19 outbreak, people are more likely to obtain a travel insurance policy, implying that COVID-19 is also a driver of travel insurance purchase amongst the Maltese