Topic: impact of herding behavior and availability heuristics on health insurance purchase decisions in Uganda

Purpose This paper examines the relationship between herding behavior, availability heuristics and purchase decisions of health insurance products in Uganda. Design/methodology/approach Data were collected from 324 health insurance policyholders in Uganda through a cross-sectional survey utilizing a structured questionnaire. Descriptive analysis was performed, and the hypothesized relationships between the constructs were examined using structural equation modeling. Findings The study findings indicate that both herding behavior and availability heuristics are significant predictors of purchase decisions for health insurance policies. Thus providing insight into the influence of herding behavior and availability heuristics on purchase decisions of health insurance products. Practical implications The study’s findings have significant implications for insurance practitioners. Incorporating aspects of herding behavior and availability heuristics could enhance health insurance adoption. However, recognizing that these biases may lead to suboptimal outcomes, insurers must address this by enhancing health insurance literacy, offering decision support systems and creating nudges and widely disseminating policy information. This proactive approach will foster informed decisions, encourage repeat purchases and establish a competitive market advantage. Originality/value This study is unique, being among the few exploring herding behavior and availability heuristics in insurance purchase decisions. Its originality lies in connecting these biases to health insurance purchase choices, particularly in a developing country like Uganda. To the author’s knowledge, no similar study exists in a developing Sub-Saharan African country. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2024-0614.