Abstract:
This study explored customer perceived value of life insurance in South Africa in order to unpack customer value drivers in this context and the resulting likelihood of disruption.
A qualitative approach unpacked customer perceptions of what was valuable to them for life insurance and their perceptions of disruption within this context. HolbrookÕs Typology of Consumer Value was used as a base to test applicability for life insurance deductively. The model was then adapted inductively for application in the life insurance industry, and the likelihood of disruption as a result of perceived value was assessed accordingly.
Economic and hedonic value dimensions were found to have the biggest impact on value in life insurance, with trust dimensions being hedonically relevant. Phenomenological and psychological hedonic value dimensions emerged from the study, both with a marked impact on value. Disruption was found to be likely in the industry due to perceived value gaps, although disruption may be slowed due to mistrust for smaller unknown insurers, and a low willingness of customers to be first-movers in this industry. It was found that even if the industry is not disrupted, disruptive players will likely influence established insurers to bridge the current value gaps to stay competitive.
