Insurance and Business Insurance Products - Research Proposal Example

However, the decision for purchasing this financial product is not a random decision. Ensuring the decision of any business organization depends on various factors. Most of the large business houses purchase insurance as soon as they enter into the market or start their operation. However, for small and medium business enterprises (SMEs), non-insurance or under-insurance is a common phenomenon. The proposed study will try to find out the factors that play significant roles behind the making of an insurance decision for SMEs.

This study is mainly concerned with Australian SMEs and hence it will focus on insurance decision making of Australian small and medium business enterprise small scale business owners of Gold Coast and Brisbane district. This study will take into account small scale business owners of Gold Coast and Brisbane district. In order to conduct successful research, it is necessary to conduct a rigorous review of existing relevant literature. This review of literature will be helpful in constructing the theoretical framework for the proposed study as well as it will show the gap in the existing literature and will b helpful in providing justification for the proposed study.

Since the proposed study is concerned with the insurance decision making of SMEs, two types of literature will be reviewed. First of all, the focus will be placed on that literature which provides some theoretical explanations of insurance decision making under risk and uncertainty. Then focus will be shifted to the empirical findings of the existing literature relating to the operation of SMEs and their insurance decisions, primarily in the context of the Australian market.Risks and uncertainties have attracted attention of a large number of researchers as risks and uncertainties significantly influence the decision-making process of any individual or business organization.