WHAT DRIVES TRUST IN INSURANCE IN AFRICA’S EMERGING INSURANCE MARKET

WHAT DRIVES TRUST IN
INSURANCE IN AFRICA’S
EMERGING INSURANCE MARKET
Nelson N. Nkwor b & Nnachi Egwu
Onuoha c
Department of Accountancy/ Banking &
Finance
Alex Ekwueme Federal University, Ndufu-

Alike, Ebonyi State, Nigeria
b
nelsonnkwor@ymail.com, ennacix@yahoo.com,
ABSTRACT
Trust does not only reduce transaction costs
in business transactions generally, but
induces uptake in insurance markets, by
reducing customers’ sensitivity to pricing as
their propensity for excessive discounting
and/or preference for today’s money over
protection financing.
Empirical insight into what drives trust in
insurance in emerging insurance markets
remains blurred. Using Africa’s emerging
insurance market context, this study
empirically investigates factors that influence
trust in insurance in emerging markets. While
data for trust, the dependent variable are
drawn from the World Values Survey (WVS),
data for independent variables are sourced
from various international reliable databases.
The study finds that drivers of trust in Africa’s
insurance market range from industry-
specific, institutional, economic to socio
demographic. The implication of the results is
need for a comprehensive trust enhancing
policies and reforms to foster Africa emerging
insurance markets development. The
outcome of the study provides further insight
on development trajectories of emerging
insurance markets as well as contributes to
extant literature on trust financial exchange

nexus. The study is relevant to insurance
market stakeholders in policymaking for
enhanced insurance demand in emerging.
Keywords: Trust in insurance, Emerging
markets, Financial exchange, Insurance
penetration

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