Hofstede's Cultural Dimensions and Number of Losses in Motor Third Party Liability insurance

Motor third party liability insurance has the highest losses among various insurance lines, due to the high number of car accidents. Individuals’ habits are the main factors in dangerous behaviors while driving and it directly relates with the number of car accidents. The main object of this paper is to study third party liability insurance policyholders’ habits and the number of car accident, using Hofstede’s cultural model. This study is a descriptive – survey research and it covers third party liability insurance policyholders of an insurance company. Simple random sampling method is used for sampling. In addition, descriptive statistics, K-S tests and Mann-Whitney U test are used. Our results show a meaningful difference between low-risk and high-risk policyholders’ habits at a 95% confidence level.