Economic, social, and regulatory influences on the uptake of life insurance in Zimbabwe: the mediating role of trust on culture, affordability and value for money

Purpose This paper assesses the influence of informal sector dynamics, economic conditions, social factors, and regulatory frameworks on the uptake of life insurance in Zimbabwe. Design/methodology/approach A quantitative methodology was utilised, employing a survey instrument that was distributed among 150 life insurance professionals from various departments. The survey utilised a five-point electronic Likert Scale questionnaire. The data analysis was performed using Partial Least Squares Structural Equation Modelling (PLS-SEM) in Smart PLS 4. Findings The study finds a negative correlation between the size of the informal sector and the uptake of life insurance, with the informal sector acting as a significant moderator in the relationship between perceived value for money and insurance uptake. Consumer perceptions of trust, affordability, and value for money emerged as important factors influencing life insurance adoption, with trust playing a mediating role between affordability and value for money. Furthermore, cultural factors positively influenced the adoption of funeral insurance products, whereas regulatory factors had no significant impact on life insurance uptake. Originality/value This study provides novel insights by advising insurers to diversify their product offerings in order to appeal to the large informal sector market. Leveraging cultural influences, particularly when promoting funeral products, provides an opportunity for insurers to broaden their market reach. Furthermore, investigating non-traditional distribution channels, such as mobile platforms, may improve access to insurance products, particularly among the informal sector demographic.