Determinants of Life Insurance Buying Behaviour in Malta
Purpose: This study aims to examine consumer behavior in the life insurance market, focusing on the factors influencing the selection of life insurance providers, pricing preferences, and the role of external recommendations and cross-selling practices. Design/Methodology/Approach: A quantitative research strategy was adopted, drawing on the methodological approaches of Attard (2019) and Guan et al. (2020). Data were collected using a structured questionnaire administered to individuals who currently own life insurance policies. The target population comprised financially protected individuals who hold life insurance policies guaranteeing beneficiary compensation in the event of death, in line with MFSA (2023) definitions. Descriptive and inferential statistical techniques were employed to analyze the data. Findings: The results indicate that Company A was the most commonly selected life insurance provider, with the majority of respondents paying an average annual premium between €201 and €400. Respondents reported an average income slightly below €19,501. The influence of external recommendations on life insurance choice was relatively limited, with a mean score of 8.24 out of 25 and a standard deviation of 2.11, indicating moderate variability among respondents. In terms of cross-selling behavior, findings reveal that customers were more likely to purchase additional products through their existing banking institution rather than acquiring multiple insurance products from the same insurance provider. Practical Implications: The findings provide valuable insights for insurance companies and financial institutions seeking to refine their marketing, pricing, and cross-selling strategies. Emphasizing bank–insurance partnerships and targeted pricing strategies may enhance customer acquisition and retention. Originality/Value: This study contributes to the limited empirical literature on life insurance consumer behavior by offering evidence-based insights into pricing sensitivity, recommendation influence, and cross-selling tendencies. It provides practical guidance for insurers and policymakers aiming to improve product design.