A CONCEPTUAL FRAMEWORK ON MOTIVATION TO INSURE AGAINST FLOOD PERIL AND THE MODERATING ROLE OF CHARITY HAZARD
DOI:
https://doi.org/10.35631/AIJBES.828006Keywords:
Charity Hazard, Coping Appraisal, Flood Insurance, Protection Motivation Theory, Self-Efficacy, Threat AppraisalAbstract
The increasing frequency and severity of flash flood disasters in Malaysia, particularly in states such as Selangor, Kelantan, and Pahang, has exposed a reality that despite the increasing risk of flood disasters, 74% of homeowners still do not have flood insurance coverage. Moreover, the mind-sets that “floods happen, but it won’t happen to me” indicates that risk perception alone is insufficient to drive protective action. Therefore, a study is essential to investigate the behavioural factors that influence individuals’ motivation to adopt insurance as a protective measure. This paper aims to propose a conceptual framework based on Protection Motivation Theory (PMT) to identify the main factors influencing individuals’ motivation to purchase flood peril cover. Additionally, this paper operationalizes protection motivation variables in the context of insurance purchase motivation This framework developed on two main cognitive appraisals namely threat appraisal and coping appraisal. The uniqueness of this framework lies in the integration of "charity hazard" as a moderator variable to test the extent to which reliance on government assistance weakens the relationship between cognitive appraisal and protection motivation. Theoretically, this study refined the application of PMT by adding moderating effects of charity hazards. Data analysis is proposed through PLS-SEM 3.0 to simultaneously examine direct relationships and for precise moderation analysis. Practically, this framework provides valuable insights to Ministry of Finance, NADMA, insurance companies, NGO’s and communities in designing more effective strategies to reduce household vulnerability through insurance.
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