IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/110406.html
   My bibliography  Save this paper

The impact of trust in the developing sector of microinsurance in South Africa

Author

Listed:
  • Mathithibane, Mpho Steve

Abstract

The aim of this paper is to investigates the influence of trust on insurance penetration in the developing Microinsurance sector of South Africa. Legacy issues and deeply rooted structural and institutional frailties have resulted in substandard levels of financial inclusion for low-income earners in the country. This segment of consumers is highly vulnerable to social, economic and as the covid-19 pandemic has proved, health shocks. Microinsurance has often been touted as a solution to improve resilience and turn the tide of significant adverse economic outcomes for the low-income segment. This paper explores the role of trust as a key construct for business success in the microinsurance sector. The study findings indicate that creation of trust and reassurance that claims will be honored when liability occurs are the main elements valued by prospective and existing microinsurance consumers. These findings contribute to advancing knowledge within the microinsurance segment, in particular, key traits needed in constructing a successful insurance programme as well as the messaging and serving element that needs to be placed at the forefront of product design and marketing in order to build trust.

Suggested Citation

  • Mathithibane, Mpho Steve, 2021. "The impact of trust in the developing sector of microinsurance in South Africa," MPRA Paper 110406, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110406
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/110406/1/MPRA_paper_110406.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. R. Chumpitaz & N. Paparoidamis, 2007. "Service quality, relationship satisfaction, trust, commitment, and business-to-business loyalty," Post-Print hal-00199063, HAL.
    2. Bibi Z. Chummun, 2017. "Mobile Microinsurance and Financial Inclusion: The Case of Developing African Countries," Africagrowth Agenda, Africagrowth Institute, vol. 14(3), pages 12-16.
    3. Dong, Hengjin & De Allegri, Manuela & Gnawali, Devendra & Souares, Aurélia & Sauerborn, Rainer, 2009. "Drop-out analysis of community-based health insurance membership at Nouna, Burkina Faso," Health Policy, Elsevier, vol. 92(2-3), pages 174-179, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi Mei & Xiaoyan Xu & Xiaodong Li, 2020. "Encouraging Patient Engagement Behaviors from the Perspective of Functional Quality," IJERPH, MDPI, vol. 17(22), pages 1-15, November.
    2. Nshakira-Rukundo, Emmanuel & Mussa, Essa Chanie & Gerber, Nicolas & von Braun, Joachim, 2020. "Impact of voluntary community-based health insurance on child stunting: Evidence from rural Uganda," Social Science & Medicine, Elsevier, vol. 245(C).
    3. Simona-Mihaela TRIF, 2012. "Antecedents and consequences of relationship quality. A case study of banking sector in Romania," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 5(18), pages 253-271.
    4. Sara Parry & Paul Westhead, 2016. "Mobilizing relationship marketing to ensure venture development in a rural resource-constrained bilingual context: The case of Draig Technology Limited," Working Papers 16002, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    5. Yihan Huang & Daehwan Kim, 2023. "How Does Service Quality Improve Consumer Loyalty in Sports Fitness Centers? The Moderating Role of Sport Involvement," Sustainability, MDPI, vol. 15(17), pages 1-24, August.
    6. Eymann, Torsten (Ed.), 2009. "Tagungsband zum Doctoral Consortium der WI 2009 [WI2009 Doctoral Consortium Proceedings]," Bayreuth Reports on Information Systems Management 40, University of Bayreuth, Chair of Information Systems Management.
    7. Panda, P. & Chakraborty, A. & Raza, W.A. & Bedi, A.S., 2015. "Renewing membership in three community-based health insurance schemes in rural India," ISS Working Papers - General Series 608, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. Erdogan, Murside Rabia & Camgoz, Selin Metin & Karan, Mehmet Baha & Berument, M. Hakan, 2022. "The switching behavior of large-scale electricity consumers in The Turkish electricity retail market," Energy Policy, Elsevier, vol. 160(C).
    9. Ye Sang & Eunkyoung Han, 2023. "A win‐win way for corporate and stakeholders to achieve sustainable development: Corporate social responsibility value co‐creation scale development and validation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1177-1190, May.
    10. Zemzem Shigute & Anagaw D. Mebratie & Robert Sparrow & Getnet Alemu & Arjun S. Bedi, 2020. "The Effect of Ethiopia’s Community-Based Health Insurance Scheme on Revenues and Quality of Care," IJERPH, MDPI, vol. 17(22), pages 1-17, November.
    11. Chen Qian & Stefan Seuring & Ralf Wagner, 2021. "Reviewing interfirm relationship quality from a supply chain management perspective," Management Review Quarterly, Springer, vol. 71(3), pages 625-650, July.
    12. Munawwer Husain, 2015. "The Role of Brand Loyalty: The Case Study of Telekom Malaysia," International Review of Management and Marketing, Econjournals, vol. 5(3), pages 173-179.
    13. Bocoum, Fadima & Grimm, Michael & Hartwig, Renate & Zongo, Nathalie, 2019. "Can information increase the understanding and uptake of insurance? Lessons from a randomized experiment in rural Burkina Faso," Social Science & Medicine, Elsevier, vol. 220(C), pages 102-111.
    14. Ming-Chih Tsai & Rico Merkert & Jiana-Fu Wang, 2021. "What drives freight transportation customer loyalty? Diverging marketing approaches for the air freight express industry," Transportation, Springer, vol. 48(3), pages 1503-1521, June.
    15. Song Bee Lian & Liew Chee Yoong, 2017. "The Effectiveness of Strategic Relationship Marketing: Exploring Relationship Quality towards Customer Loyalty," International Business Research, Canadian Center of Science and Education, vol. 10(12), pages 159-166, December.
    16. Boniface, Bonaventure & Gyau, Amos & Stringer, Randy & Umberger, Wendy J., 2010. "Building producer loyalty in Malaysia's fresh milk supply chain," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 18, pages 1-19.
    17. Yaoguang Zhong & Ivan Ka Wai Lai & Fangfang Guo & Huajun Tang, 2020. "Effects of Partnership Quality and Information Sharing on Express Delivery Service Performance in the E-commerce Industry," Sustainability, MDPI, vol. 12(20), pages 1-19, October.
    18. Dube, Thulani & Chummun, Bibi Zaheenah, 2019. "Mobile Money access and usage among the rural communities in Zimbabwe," MPRA Paper 97578, University Library of Munich, Germany, revised 05 Dec 2019.
    19. David Mark Dror, 2018. "What Factors Affect Voluntary Uptake of Community-based Health Insurance Schemes in Lowand Middle-Income Countries? A Systematic Review and Meta-Analysis," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 14, pages 271-306, World Scientific Publishing Co. Pte. Ltd..
    20. Daniel Martínez Cevallos & Mario Alguacil & Ferran Calabuig Moreno, 2020. "Influence of Brand Image of a Sports Event on the Recommendation of Its Participants," Sustainability, MDPI, vol. 12(12), pages 1-13, June.

    More about this item

    Keywords

    Microinsurance; low-income market; South Africa;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:110406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.