CAUSAL SURVEY OF PURCHASE OF NON-LIFE INSURANCE PRODUCTS FOR LITHUANIAN CONSUMERS

On purpose to increase the demand for insurance services in Lithuania there still remains a problem of how consumers perceive this service as well as what components, influencing their decision to purchase non-life insurance products, they accentuate in the price of insurance service. Emphasizing the assumptions of sustainable economic development in Lithuania and attempting to form regional policy by means of research, the study was implemented in order to identify factors and causal relationships that determine non-life insurance product purchasing motives in Lithuania. The study conducted a survey of Klaipeda city residents who buy various insurance products in different insurance companies. In total 420 respondents participated in this survey. To verify the results of the research three tests were applied: Pearson‘s Chi-square test, Fisher test (Fisher’s exact) and Cramer’s V test. It was identified that friends’ recommendations do not affect consumer‘s choice for insurance products. Higher rates of benefits as well as flexible pricing policy were not important factors choosing an insurance company. High insurance product’s cost and unclear conditions set in the contracts do not encourage consumers to purchase them. In the course of the research significant relationships between the consumer’s choice to insure by specific insurance product and consumer’s discount-enhanced motivation to purchase insurance products were not observed. All measured insurance products did not reflect statistically significant correlations between the decision to get insured and the knowledge about the prices in other insurance companies.KEY WORDS: non-life insurance products, price, consumers’ perceived value.JEL CODES: C83; G 22; E30; L11; Y10; D46.DOI: http://dx.doi.org/10.15181/rfds.v14i3.86