The influence of perceived social norms and the availability heuristic on consumer insurance decisions

Abstract

Understanding the factors influencing consumers’ insurance decisions is still crucial in a time of persistent underinsurance. This research investigates the understated cognitive factors that influence South African customers’ insurance decisions, placing emphasis on the way availability heuristics (rapid judgements drawn from vivid recollection) and perceived social norms steer purchase intentions. This study employed a quantitative cross-sectional framework with 162 participants, challenging conventional assumptions about rational insurance-related decisions. The results show that availability heuristics had a strong influence on individuals purchase intention. This reflects the inclination by consumers to be swayed by a vivid personal recollection above pages full of detached numerical probabilities. Perceived social norms likewise showed a meaningful influence on purchase intention, yet this effect manifested independently and did not amplify availability heuristics. These disclosures have significant implications for the insurance sector, which is experiencing significant changes. Behavioural science offers unique insights for improving product design and marketing strategies as the insurance industry struggles with economic pressures, climate-driven disasters, and rapid digital transformations. The research findings guide practitioners to use social norms to influence choices through conformity dynamics. Practitioners may use emotionally charged media coverage to boost insurance adoption rather than complex statistical presentations.