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How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa
The study explores the impact of information asymmetry and intermediation on the uptake of life insurance in low-income communities in South Africa. The study was motivated by the significantly high penetration of funeral cover in low-income communities with a relatively low adoption of life insuran...
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| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2024
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| _version_ | 1867613246456856576 |
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| access_status_str | Open Access |
| author | Nwadeyi, Prince |
| author2 | Luiz, John |
| author_browse | Luiz, John Nwadeyi, Prince |
| author_facet | Luiz, John Nwadeyi, Prince |
| author_sort | Nwadeyi, Prince |
| collection | Thesis |
| description | The study explores the impact of information asymmetry and intermediation on the uptake of life insurance in low-income communities in South Africa. The study was motivated by the significantly high penetration of funeral cover in low-income communities with a relatively low adoption of life insurance in these same communities. The literature highlights, in particular, the importance of intermediary incentives, intentions and motives, and how these contribute to the advancement of institutional work in dualistically structured markets. The main research question was, “How do intermediaries engage in institutional work to address information asymmetries in the uptake of life insurance in the South African low-income market?” The theoretical lens applied in this study is that of institutional work. To answer the research question, the researcher adopted a single instrumental case study methodology, specifically focusing on a medium-sized insurance company with a long history in South Africa. Semi-structured interviews based on a questionnaire were used to engage with relevant insurance personnel, intermediaries and consumers. The findings showed that information asymmetry persists because of intermediation and other consumer-specific dynamics which remain, owing to the absence of financial knowledge in low-income communities. The contribution of this thesis is the introduction of a model that has the potential to drive disintermediation and enable innovative access to life insurance in low-income communities in South Africa. The theoretical contribution of this study is to create awareness about the voids in dualistically structured markets, which result in information asymmetry partly as a result of the actions of intermediating actors who are dominant players in the insurance industry. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/39855 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:05.164Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/39855 How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa Nwadeyi, Prince Luiz, John Inclusive Innovation The study explores the impact of information asymmetry and intermediation on the uptake of life insurance in low-income communities in South Africa. The study was motivated by the significantly high penetration of funeral cover in low-income communities with a relatively low adoption of life insurance in these same communities. The literature highlights, in particular, the importance of intermediary incentives, intentions and motives, and how these contribute to the advancement of institutional work in dualistically structured markets. The main research question was, “How do intermediaries engage in institutional work to address information asymmetries in the uptake of life insurance in the South African low-income market?” The theoretical lens applied in this study is that of institutional work. To answer the research question, the researcher adopted a single instrumental case study methodology, specifically focusing on a medium-sized insurance company with a long history in South Africa. Semi-structured interviews based on a questionnaire were used to engage with relevant insurance personnel, intermediaries and consumers. The findings showed that information asymmetry persists because of intermediation and other consumer-specific dynamics which remain, owing to the absence of financial knowledge in low-income communities. The contribution of this thesis is the introduction of a model that has the potential to drive disintermediation and enable innovative access to life insurance in low-income communities in South Africa. The theoretical contribution of this study is to create awareness about the voids in dualistically structured markets, which result in information asymmetry partly as a result of the actions of intermediating actors who are dominant players in the insurance industry. 2024-06-05T10:11:42Z 2024-06-05T10:11:42Z 2023 2024-06-05T10:07:05Z Thesis / Dissertation Masters MPhil http://hdl.handle.net/11427/39855 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Inclusive Innovation Nwadeyi, Prince How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa |
| thesis_degree_str | Master's |
| title | How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa |
| title_full | How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa |
| title_fullStr | How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa |
| title_full_unstemmed | How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa |
| title_short | How financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in South Africa |
| title_sort | how financial intermediation affects information asymmetry and the uptake of life insurance in marginalized communities in south africa |
| topic | Inclusive Innovation |
| url | http://hdl.handle.net/11427/39855 |
| work_keys_str_mv | AT nwadeyiprince howfinancialintermediationaffectsinformationasymmetryandtheuptakeoflifeinsuranceinmarginalizedcommunitiesinsouthafrica |