How Does Insurer's Mobile Application Sales Strategy Perform?

29 Pages Posted: 20 Dec 2021 Last revised: 6 May 2022

See all articles by An Chen

An Chen

Ulm University - Institute of Insurance Science

Yusha Chen

Ulm University - Department of Mathematics and Economics

Finbarr Murphy

University of Limerick - Kemmy Business School

Wei Xu

University of Limerick - Kemmy Business School

Xian Xu

Fudan University - School of Economics

Date Written: May 6, 2022

Abstract

The mobile Internet has profoundly changed people’s lifestyles. While the contribution of the Internet sales strategy to the sales performance of physical goods has been well studied in the retailing and marketing fields, there is little academic research investigating the impact of the mobile application sales strategy on insurance sales performance. Based on a unique data set from a life insurer in China, we examine the effects of implementing this strategy on insurance purchases. Significant growth is observed in both insurance purchase quantities and premiums received from new policies (PRNP) for term life insurance, which is partly owing to the channel accessibility. We find that the increase in PRNP is less substantial due to the reduction in unit price. Further, we observe that this strategy mitigates impulsive purchases, and reduces offline purchase quantities in the short run. In the short term, it can also produce negative effects such as cannibalization.

Keywords: Mobile Internet, Mobile Application, Insurance Marketing

JEL Classification: G22, D12

Suggested Citation

Chen, An and Chen, Yusha and Murphy, Finbarr and Xu, Wei and Xu, Xian, How Does Insurer's Mobile Application Sales Strategy Perform? (May 6, 2022). Available at SSRN: https://ssrn.com/abstract=3985977 or http://dx.doi.org/10.2139/ssrn.3985977

An Chen

Ulm University - Institute of Insurance Science ( email )

Ulm, 89081
Germany

HOME PAGE: http://www.uni-ulm.de/mawi/ivw/team

Yusha Chen (Contact Author)

Ulm University - Department of Mathematics and Economics ( email )

Helmholzstrasse
Ulm, D-89081
Germany

HOME PAGE: http://https://www.uni-ulm.de/mawi/ivw/institut/team/yusha-chen/

Finbarr Murphy

University of Limerick - Kemmy Business School ( email )

Limerick
Ireland

Wei Xu

University of Limerick - Kemmy Business School ( email )

Limerick
Ireland

Xian Xu

Fudan University - School of Economics ( email )

600 GuoQuan Road
Shanghai, 200433
China

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