Influence of Cultural Factors and Regulatory Policies on Uptake of Life Assurance Products in Kenya

Abstract

Life assurance products have been used over the years as both an instrument of protection and a tool for investment. Cultural factors feature prominently among the factors that influence the uptake of Life assurance. This study sought to establish the influence of cultural factors on the uptake of Life assurance products in Kenya, moderated by Regulatory policies. The study was anchored on the Human Life Value Theory. The independent variables in the study were the Cultural factors, the dependent variable was the uptake of Life Assurance products, and the moderating variable was regulatory policies. The study employed a Descriptive survey research design and was quantitative in nature. The sample size of the study was 537 respondents calculated using the Taro Yamane (1970) formula from a study population of 6376 Public Primary school teachers in Kisumu County. The study used primary data, which was collected using a closed-ended questionnaire. The data was analyzed using descriptive statistics, correlation, and regression. The findings indicated that there is a significant relationship between Cultural factors and Life Assurance product uptake among policyholders in Kisumu County, where Cultural factors alone could explain 30.1 percent of the variance in the uptake of Life Assurance products. Equally, there is a strong relationship between Cultural factors, regulatory policies, and uptake of Life Assurance products. The study resolved inconsistencies in theory, policy, and practice, thereby bolstering the argument that insurance companies should consider Cultural factors that increase the use of life assurance products.