Supply-side factors and uptake of insurance products among Ghanaian households

Abstract

This study examines the influence of supply-side factors on uptake of insurance, as well the moderating effect of sales agent effectiveness on the interactions. A survey research design was adopted following a quantitative approach. The target population of this study comprised Ghanaian households of income earning groups (earning less than US$190; earning between US$191 and US$1,000; as well as earning US$1,000). Using a cross-sectional survey, a structured questionnaire was administered to 520 households that participated in the survey following a convenience sampling technique in line with the ethical considerations in social science research. The formulated hypotheses were tested using hierarchical regression analyses for the direct and moderating relationships. The results show that three supply-side factors influencing insurance uptake are insurance product design, customer service, and market positioning. The relationships between insurance product design, customer service, market positioning, and insurance uptake become stronger with higher levels of sales agent effectiveness. The implications for practice point to the need for a concerted effort on development of insurance products across the income brackets, offering insurance product cost suitable for each income group and providing adequate awareness to enhance uptake of insurance products.