IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v1y2021i9d10.1007_s43546-021-00121-1.html
   My bibliography  Save this article

To insure or not to insure—the role that government and insurance practice should play: a thematic comparison of the urban poor and the workers in the pensions and insurance industry

Author

Listed:
  • Chimuka Leo Haamukwanza

    (Mukuba Pension Trust)

Abstract

The insurance uptake in Zambia remains low. Research on the Insurance Purchase Decisions (IPD) has followed a quantitative orientation and showed varying results from one jurisdiction to another. This research sought to understand the role that government and insurance practice and management should play in increasing insurance consumption in Zambia through a thematic comparison of the perceptions of the Workers in the Pensions and Insurance Industry (WPII) and the Urban Poor (UP). This study was part of a larger mixed methods sequential explanatory study aimed at understanding the determinants of the insurance purchase decision-making in Zambia: particularly comparing how the WPII and the UP make their insurance purchase decisions. Data were collected through in-depth, semi structured interviews which lasted an average of 15–23 min. Thematic analysis (TA) was used in analysing the data to understand the role the government and insurance practice and management should play to enhance insurance consumption in Zambia. Three themes emerged as being the ones that government and insurance practice and management should undertake to promote insurance consumption: Financial literacy, service quality and regulation of the insurance industry. The research has highlighted that addressing these three components would have a positive effect on the consumption of insurance. The research has also highlighted that: (1) Insurance messages should be made simple enough for the population to understand. This will allow for accurate decision-making and the possible increases in financial literacy would have a positive impact towards insurance uptake; (2) There is need for the government to introduce incentives for insurance operators that set up operations in the rural areas; and (3) some insurance products should be subsidised so as to increase insurance consumption. Policy implications relate to the need to increase insurance consumption through addressing three key thematic areas: financial literacy, service quality and causing changes in the regulatory framework. This study deviated from the traditional quantitative analysis in insurance studies through using a qualitative orientation and thematic analysis, to compare the perceptions of two different populations.

Suggested Citation

  • Chimuka Leo Haamukwanza, 2021. "To insure or not to insure—the role that government and insurance practice should play: a thematic comparison of the urban poor and the workers in the pensions and insurance industry," SN Business & Economics, Springer, vol. 1(9), pages 1-20, September.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:9:d:10.1007_s43546-021-00121-1
    DOI: 10.1007/s43546-021-00121-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-021-00121-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-021-00121-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Feyen, Erik & Lester, Rodney & Rocha, Roberto, 2011. "What drives the development of the insurance sector ? an empirical analysis based on a panel of developed and developing countries," Policy Research Working Paper Series 5572, The World Bank.
    2. Adam Sliwinski & Tomasz Michalski & Malgorzata Roszkiewicz, 2013. "Demand for Life Insurance—An Empirical Analysis in the Case of Poland," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 38(1), pages 62-87, January.
    3. Simona Laura Dragoş & Codruţa Mare & Cristian Mihai Dragoş, 2019. "Institutional drivers of life insurance consumption: a dynamic panel approach for European countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 36-66, January.
    4. Ali al-Nowaihi & Sanjit Dhami, 2010. "The Behavioral Economics of Insurance," Discussion Papers in Economics 10/12, Division of Economics, School of Business, University of Leicester, revised Apr 2010.
    5. Park, Sojung Carol & Lemaire, Jean, 2012. "The Impact of Culture on the Demand for Non-Life Insurance," ASTIN Bulletin, Cambridge University Press, vol. 42(2), pages 501-527, November.
    6. Oscar Joseph Akotey & Kofi A. Osei & Albert Gemegah, 2011. "The demand for micro insurance in Ghana," Journal of Risk Finance, Emerald Group Publishing, vol. 12(3), pages 182-194, May.
    7. Dalila BENZIANE & Qasim SHAH, 2019. "Insurance consumption in the Maghreb countries (Algeria, Morocco and Tunisia): Financial and institutional determinants," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(620), A), pages 193-204, Autumn.
    8. Hui-Shan Lee & Kevin-Lock-Teng Low & Shyue-Chuan Chong & Bik-Kai Sia, 2018. "Influence of Secondary and Tertiary Literacy on Life Insurance Consumption: Case of Selected ASEAN Countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(1), pages 1-15, January.
    9. Rudolf Enz, 2000. "The S-Curve Relation Between Per-Capita Income and Insurance Penetration," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 25(3), pages 396-406, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rangan Gupta & Amine Lahiani & Chi-Chuan Lee & Chien-Chiang Lee, 2019. "Asymmetric dynamics of insurance premium: the impacts of output and economic policy uncertainty," Empirical Economics, Springer, vol. 57(6), pages 1959-1978, December.
    2. Relwendé Sawadogo, 2021. "The relationship between insurance and banking sectors in Sub-Saharan African: Does globalization matter?," Economic Change and Restructuring, Springer, vol. 54(1), pages 101-119, February.
    3. Relwende Sawadogo, Samuel Guerineau and Idrissa M. Ouedraogo, 2018. "Life Insurance Development and Economic Growth: Evidence from Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(2), pages 1-28, June.
    4. Elena Nebolsina, 2020. "The Impact of Demographic Burden on Insurance Density," SAGE Open, , vol. 10(4), pages 21582440209, December.
    5. Hui Shan Lee & Shyue Chuan Chong & Shen Yap & Bik Kai Sia & Ying Xi Chen, 2021. "Does Economic Freedom in Host Countries Lead to Increased Non-Life Insurance Development?," SAGE Open, , vol. 11(4), pages 21582440211, October.
    6. Samuel Guérineau & Relwende Sawadogo, 2015. "On the determinants of life insurance development in Sub-Saharan Africa: the role of the institutions quality in the effect of economic development," CERDI Working papers halshs-01178838, HAL.
    7. Nicola Ranger & Swenja Surminski, 2011. "A preliminary assessment of the impact of climate change on non-life insurance demand in the BRICS economies," GRI Working Papers 63, Grantham Research Institute on Climate Change and the Environment.
    8. Alhassan, Abdul Latif & Biekpe, Nicholas, 2016. "Determinants of life insurance consumption in Africa," Research in International Business and Finance, Elsevier, vol. 37(C), pages 17-27.
    9. Lee, Chien-Chiang & Chiu, Yi-Bin & Chang, Chi-Hung, 2013. "Insurance demand and country risks: A nonlinear panel data analysis," Journal of International Money and Finance, Elsevier, vol. 36(C), pages 68-85.
    10. Sisira Kumara NARADDA GAMAGE, & Li LIN, & Ihtisham ul HAQ, 2016. "Economic & Demographic Characterictics, Social Capital And Demand For Life Insurance: Evidence From Central Region Of Sri Lanka," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-9, July.
    11. Lee, Chien-Chiang & Lee, Chi-Chuan & Chiu, Yi-Bin, 2013. "The link between life insurance activities and economic growth: Some new evidence," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 405-427.
    12. Lee, Hui Shan & Cheng, Fan Fah & Chong, Shyue Chuan & Sia, Bik Kai, 2018. "Influence of Macroeconomics Factors and Legal Stability to the Insurance Growth in the ASEAN-5 Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 219-229.
    13. Rudra P. Pradhan, Mak B. Arvin, John H. Hall and Neville R. Norman, 2017. "Insurance Market Development and Macroeconomic Interactions in Twenty-Six Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(4), pages 23-57, December.
    14. Nicola Ranger & Andrew Williamson, 2011. "Forecasting non-life insurance demand in the BRICS economies: a preliminary evaluation of the impacts of income and climate change," GRI Working Papers 61, Grantham Research Institute on Climate Change and the Environment.
    15. Benlagha, Noureddine & Hemrit, Wael, 2020. "Internet use and insurance growth: evidence from a panel of OECD countries," Technology in Society, Elsevier, vol. 62(C).
    16. Markéta Arltová & Tomáš Kábrt, 2018. "Hlavní determinanty ovlivňující poptávku po životním pojištění v České republice [Analysis of Determinants, Influencing Life Insurance Demand in the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(3), pages 344-365.
    17. Nguyen Phuc Canh & Udomsak Wongchoti & Su Dinh Thanh, 2021. "Does economic policy uncertainty matter for insurance development? Evidence from 16 OECD countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(4), pages 614-648, October.
    18. Gabriela-Mihaela MURESAN, 2019. "Public Perception Of Insurance In Romania: A Survey Of Insurance Consumers And Non-Consumers," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(21), pages 1-5.
    19. Giovanni Millo & Gaetano Carmeci, 2011. "Non-life insurance consumption in Italy: a sub-regional panel data analysis," Journal of Geographical Systems, Springer, vol. 13(3), pages 273-298, September.
    20. Susannah Fisher & Swenja Surminski, 2012. "The roles of public and private actors in the governance of adaptation: the case of agricultural insurance in India," GRI Working Papers 89, Grantham Research Institute on Climate Change and the Environment.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:1:y:2021:i:9:d:10.1007_s43546-021-00121-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.