Behavioural economic perspectives in insurance purchase decisions

Abstract

Choosing insurance coverage is a multifaceted and intricate process crucial for protecting individuals and businesses from unexpected risks. This research delved into how people in South Africa make these insurance coverage purchase decisions, particularly considering the uneven nature of coverage available. Using qualitative methods, the research thoroughly investigated the factors influencing insurance choices in the South African context. Examining behavioral economics and where and how consumers get their insurance information, the study uncovered how these elements interact in shaping insurance decisions in South Africa. The insights gained are valuable for insurance companies and policymakers, offering guidance on tailoring insurance products to better suit the diverse needs and preferences of the South African market. Furthermore, the research contributes to the broader understanding of decision-making in insurance, within an emerging market perspective in creating insurance products and regulations. Understanding how individuals in South Africa choose their insurance coverage is not just academically important but also holds practical implications for improving the accessibility and effectiveness of insurance products. This, in turn, promotes greater financial security and risk management within the country.