Investigating factors that encumber old mutual protect covers in South Africa

Abstract

This study examines the obstacles to the adoption of Old Mutual Protect Covers in South Africa through a quantitative methodology.  The study seeks to ascertain critical variables—namely income level, education level, and faith in insurance companies—that affect the probability of acquiring certain insurance products.  Data was gathered via a structured survey of 500 South African people and analysed utilising SPSS version 29.0, focussing on Pearson correlation and regression analysis.  The results indicate substantial favourable correlations among income level, education level, and faith in insurance firms with the use of Old Mutual Protect Covers.  These findings indicate that socio-economic considerations and customer confidence are pivotal in the acquisition of insurance.  The report continues with recommendations for Old Mutual to improve awareness and trust among lower-income and less-educated demographics to boost the adoption of their Protect Covers.  The study's limitations and recommendations for future research are also addressed.

Keywords: {'name': 'Old Mutual Protect Covers'}, {'name': 'Insurance adoption'}, {'name': 'Income level'}, {'name': 'Education level'}, {'name': 'Trust in insurance'}, {'name': 'South Africa'}, {'name': 'Quantitative analysis'}

Authors & affiliations

Reginald M. Ndwamai
Affiliation not supplied

Ndivhuwo Sirembe
Affiliation not supplied

Ambani Tshikovhi
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1016/0749-5978(91)90020-T

Ajzen, I., & Fishbein, M. (2005). The influence of attitudes on behavior. In D. Albarracín, B. T. Johnson, & M. P. Zanna (Eds.), The handbook of attitudes (pp. 173–221). Lawrence Erlbaum Associates.

DOI: 10.1093/wber/lhn020

Bongomin, G. O. C., Ntayi, J. M., Munene, J. C., & Nabeta, I. N. (2016). Financial literacy in emerging economies: Do all components matter for financial inclusion of poor households in rural Uganda? Managerial Finance, 42(7), 731–753.

Chitimira, H., & Ncube, M. (2021). Financial inclusion and consumer protection in the South African financial market. Law, Democracy & Development, 25, 177–194.

DOI: 10.1596/1813-9450-6546

DOI: 10.1111/j.1559-1816.1998.tb01685.x

DOI: 10.1111/j.1745-6606.2010.01170.x

Jones, M., & Woolley, T. (2019). The financial risk of underinsurance: A global perspective. Journal of Risk and Insurance, 86(4), 123–145.

Kumar, S., & Tiwari, A. (2020). Life insurance adoption in emerging markets: An empirical study. International Journal of Business and Management, 15(5), 45–59.

Liedtke, P. (2017). The role of insurance in economic development in Africa. African Development Review, 29(2), 25–38.

DOI: 10.1257/jel.52.1.5

Mago, S., & Hofisi, C. (2020). Informal financial support systems in South Africa: An analysis. African Journal of Business Management, 14(3), 98–106.

Masemola, T. (2018). Cultural influences on insurance adoption in South Africa. South African Journal of Economic and Management Sciences, 21(1), 1–10.

Mhlanga, D., & Sibanda, K. (2020). Challenges in insurance penetration among youth in South Africa. Journal of Economics and Financial Sciences, 13(2), 34–52.

Mhlongo, Z. (2021). Financial literacy and insurance uptake among South African youth. Journal of Consumer Education, 35(1), 78–94.

Morduch, J. (2019). Income inequality and insurance adoption: A review of evidence. Development Policy Review, 37(2), 177–195.

Naidoo, S., & Botha, F. (2021). Financial decision-making among South African millennials: An exploratory study. Journal of Family and Economic Issues, 42(4), 634–646.

Ntuli, M., & Mankayi, N. (2020). Barriers to financial services access in South Africa: A focus on the youth. South African Journal of Economics, 88(3), 271–288.

Old Mutual. (2022). Annual financial report. Old Mutual South Africa.

Old Mutual. (2022). Old Mutual Protect: Comprehensive coverage for South Africans. Old Mutual Insurance Report.

Pérez-Macías, N., & Mendieta-Izquierdo, G. (2019). The role of perceived behavioural control in life insurance purchase decisions. Journal of Behavioral Finance, 20(2), 165–180.

DOI: 10.1016/j.jretconser.2017.06.004

Smith, R., & Couch, R. (2017). Insurance behavior in emerging markets: A case study of South Africa. Journal of Insurance Regulation, 36(1), 43–67.

Stats SA. (2021). Quarterly labour force survey. Statistics South Africa.

Truong, Y. (2014). A cross-country study of consumer sustainable purchase intentions: The effect of ecological knowledge and perceived consumer effectiveness. International Journal of Consumer Studies, 38(3), 260–268.

DOI: 10.1596/1813-9450-6107

DOI: 10.1108/10662241111104884