An Empirical Evaluation of the Technology Acceptance Model for Peer-to-Peer Insurance Adoption: Does Income Really Matter?

Abstract

One essential component of insurance technology (Insurtech) is peer-to-peer (P2P) insurance, which represents a transformative shift from conventional insurance to digital platforms by fostering community-based risk sharing. This study contributes to the body of knowledge by engaging the Technology Acceptance Model (TAM2) to explore how perceived usefulness, perceived ease of use, subjective norms, and perceived trust influence the adoption of P2P insurance, and the moderating influence of income on these relationships. This study used a self-administered survey questionnaire to collect data from short-term insurance clients in South Africa. The survey was analysed using the confirmatory factor analysis and structural equation modelling (SEM) approach. The findings demonstrate that perceived usefulness, ease of use, and subjective norms present a significant positive influence on the adoption of P2P insurance, underscoring the relevance of value, ease of use, and social influence in predicting the adoption of insurance technologies, particularly P2P insurance. However, perceived risk and trust exhibit a positive but statistically insignificant relationship. Additionally, this study reveals that income exerts a significant positive moderating influence on perceived usefulness, ease of use, and subjective norms in affecting P2P adoption, implying that individuals with higher incomes are responsive to these factors when considering P2P insurance. This study highlights the need for policies that support the development of digital infrastructure, as its accessibility and ease of use, including social norms, are predicted as essential drivers of P2P insurance adoption. Also, policymakers should focus on creating a regulatory environment that encourages accountability and openness to P2P insurance.