The growth strategy of the insurance industry in the emerging market: A study of impact factors

Abstract

Financial inclusion can be defined as the delivery of financial services to the vast majority of low-income and disadvantaged groups at an affordable cost. Very preliminary studies have been conducted in South Africa to address the consumer populations’ perception of inclusive insurance and insurers’ view of actively selling inclusive insurance products to increase profit margins (Huneberg, 2021). The study explored the factors that influence the growth of the insurance industry in the emerging market. Using an approximate sample size of 120 insurers and 384 for the consumer population, 115 insurers completed the insurer survey while 375 consumers completed the survey. A quantitative research method was used in the form of two questionnaires, one for insurers and another for consumers. Data analysis revealed that more insurers would actively sell inclusive insurance products as a means to increasing revenues. More consumers are willing to purchase inclusive insurance products if given the option and proper information and education. Insurance companies should engage in marketing strategies that create awareness about the benefits of insurance products in the minds of consumers.