Zhou, X; Wang, Y and Gong, E (2025) Investigation of the factors driving engineering insurance consumption in china’s construction industry: A hybrid approach. Engineering, Construction and Architectural Management, 32(5), pp. 3236-3258. ISSN 0969-9988
Abstract
Purpose: Given the increasing importance of engineering insurance, it is still unclear which specific factors can enhance the role of engineering insurance as a risk transfer tool. This study aims to propose a hybrid approach to identify and analyze the key determinants influencing the consumption of engineering insurance in mainland China. Design/methodology/approach: The empirical analysis utilizes provincial data from mainland China from 2008 to 2019. The research framework is a novel amalgamation of the generalized method of moments (GMM) model, the quantile regression (QR) technique and the random forest (RF) algorithm. This innovative hybrid approach provides a comprehensive exploration of the driving factors while also allowing for an examination across different quantiles of insurance consumption. Findings: The study identifies several driving factors that significantly impact engineering insurance consumption. Income, financial development, inflation, price, risk aversion, market structure and the social security system have a positive and significant influence on engineering insurance consumption. However, urbanization exhibits a negative and significant effect on the consumption of engineering insurance. QR techniques reveal variations in the effects of these driving factors across different levels of engineering insurance consumption. Originality/value: This study extends the research on insurance consumption to the domain of the engineering business, making theoretical and practical contributions. The findings enrich the knowledge of insurance consumption by identifying the driving factors specific to engineering insurance for the first time. The research framework provides a novel and useful tool for examining the determinants of insurance consumption. Furthermore, the study offers insights into the engineering insurance market and its implications for policymakers and market participants.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction industry; driving factors; engineering insurance; insurance consumption; quantile regression; random forest |
| Index terms: | urbanization, investigation, income, insurance, construction industry, determinant, forest, exploration, methodology, inflation, variation, consumption, China |
| Subjects: | consumer economics, environmental science, economic analysis, urban planning, environmental resource management, Geography, research methods, risk assessment, data collection methods, contractual condition, industry analysis |
| Topics: | Business Strategy, Research Practice, Stakeholder Management, Governance, Contract Administration, Geographical Context, Risk Management, Sustainability |
| Descriptive scope: | 4 PCTA |
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