Insurance for the Uninsured: Exploring Drivers of Life Insurance Intent in Ghana’s Informal Economy

Edna Yawa Akura-Asase; Mary Abra Amenuku; Bashiru Mohammed

doi:10.18535/ijsrm/v13i05.em03

Abstract

This study investigates the factors influencing life insurance purchase intention among informal sector workers in Ghana, a demographic that remains largely uninsured despite being financially vulnerable. Drawing on the Theory of Planned Behavior and Theory of Reasoned Action, the research explores how consumer insurance literacy, price of life insurance, and consumer confidence in insurance affect purchase intention, with attitude toward life insurance serving as a mediating variable. Using a cross-sectional survey design and Partial Least Square Structural Equation Modeling (PLS-SEM) on data collected from 560 informal workers using a questionnaire, the findings reveal that insurance literacy and consumer confidence positively and significantly influence purchase intention, while the price of life insurance exerts a negative effect. Attitude toward life insurance was found to partially mediate the relationships between all three independent variables and purchase intention. These results highlight the psychological and informational drivers behind insurance uptake decisions in underinsured populations. The study contributes to the behavioral finance literature by contextualizing insurance behavior in an informal economy and offers practical implications for insurers and policymakers aiming to expand life insurance coverage among low- to middle-income earners in emerging markets.

Keywords

Código Penal. Dosimetria da Pena. Proporcionalidade. Legalidade. Circunstâncias Judiciais.

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[refR-3] 3. Achmadi, H., Suk, K. S., Meranga, I., & Samuel, S. (2024). The Influence of Attitude, Perceived Behavior Control, Subjective Norms, Sex and Age to Intention to Purchase Healthcare Insurance. GATR Journal of Management and Marketing Review, 49–56. https://doi.org/10.35609/jmmr.2024.9.1(5)

[refR-4] 4. Afthanorhan, A., Ghazali, P. L., & Rashid, N. (2021). Discriminant Validity: A Comparison of CBSEM and Consistent PLS using Fornell & Larcker and HTMT Approaches. Journal of Physics: Conference Series, 1874(1), 012085. https://doi.org/10.1088/1742-6596/1874/1/012085

[refR-5] 5. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

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[refR-7] 7. Alagarsamy, S., Mehrolia, S., & Mathew, S. (2021). How Green Consumption Value Affects Green Consumer Behaviour: The Mediating Role of Consumer Attitudes Towards Sustainable Food Logistics Practices. Vision: The Journal of Business Perspective, 25(1), 65–76. https://doi.org/10.1177/0972262920977986

[refR-8] 8. Alareeni, B. A., & Hamdan, A. (2020). ESG impact on performance of US S&P 500-listed firms. Corporate Governance: The International Journal of Business in Society, 20(7), 1409–1428. https://doi.org/10.1108/CG-06-2020-0258

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Insurance for the Uninsured: Exploring Drivers of Life Insurance Intent in Ghana’s Informal Economy

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