An Investigation on the Determinants of Life Assurance Products Uptake in Zimbabwe
Tendai Towo, Kosmas Njanike, Knowledge Jonasi
Journal Title:Journal of Economics and Finance
The insurance sector is becoming a more and more important component for economic and financial development. However, the consumption and the density, for both life and non-life insurances varies across countries. The study seeks to explore the determinants of uptake of life assurance products in Zimbabwe. Data from Finscope Survey 2014 was used to estimate probit models and for robustness check Linear Probability Models were used. Using these data, the socioeconomic factors influencing individuals in deciding whether or not to take up life assurance products in Zimbabwe was analysed. According to our analysis, the decision to take up insurance policies by individuals is influenced by education level, health status, salary (formal employment), income, financial advice and being head of the household. There is need to build inclusive financial systems through different policies by governments and central banks. Financial literacy education and campaigns are paramount in improving levels of insurance uptake.