Factors which influence purchasing life insurance in South Africa

Abstract

In the context of an evolving and innovating financial sector globally, South Africa’s insurance market has shown resilient. However, its ability to maintain this resilience is a question that remains uncertain. in the face of growing innovations and products by big tech and fintech companies. This comparative advantage can be eroded especially with a dynamic consumer landscape. Based on the backdrop of the South African market, the study investigated the varying socio-demographic, social, economic and market motives to take up life insurance and/or cancel life insurance amongst various age groups with a focus on Gen Z consumers. Through an ANOVA analysis technique, the study finds that Gen Z consumers from the perspective of South Africa are motivated to use a product if the insurer demonstrates innovation and that the respective cohort is less sensitive price-sensitive than their counterparts. The result points to a need for insurance companies in South Africa to innovate their products and adequately use effective marketing techniques to attract these students