What Drives Consumers to Use InsurTech Apps? The Role of Insurance Literacy DOI: https://doi.org/10.33093/ijomfa.2026.7.2.3
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Abstract
Although financial technology has spread worldwide, the adoption of InsurTech in Malaysia is still low because of the knowledge-action gap, in which people continue to use traditional agents. This study examines the factors that determine behavioral intention to use InsurTech apps by incorporating the Unified Theory of Acceptance and Use of Technology (UTAUT) and including a novel insurance literacy factor. A cross-sectional quantitative research design was adopted, and 406 valid responses were gathered from 406 Malaysian Generation Z individuals and analyzed using partial least squares structural equation modelling (PLS-SEM). The findings indicate that the model explains 58% of the variance in behavioral intention, with trust as the best predictor, followed by insurance literacy, performance expectancy, information quality, and social influence. In contrast, effort expectancy and perceived risk were found to be insignificant. Rather than concentrating on technical features, this study demonstrates that individuals tend to use financial applications more when they are familiar with them. Such results provide guidance to insurers who create educational centers that simplify the language of insurance; hence, the divide between technological accessibility and real user behavior is reduced to increase financial resilience in emerging countries.
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