Factors That Influence the Purchase of Life Assurance by the Academic Staff of the University of Nairobi

Abstract

This study had one objective, which was to identify the factors that are important in influencing the University of Nairobi academic staff in their purchase of a life assurance policy. To do this, a survey was conducted on 93 academic staff members of the University of Nairobi using structured questionnaires with both close and open-ended questions. The data collected was presented using tables. The most important factors that influenced the purchase of life insurance to both the persons with and without life assurance policies were spouses, children, attitude towards insurance, perception towards insurance, amount of premium, reputation of the company, fast handling of claims, quality of customer service, benefits offered on maturity, other non-life insurance covers, and lifestyle while the least important factors were the societal or tribal norms, advertisement and members of the religion. The main factors used in the study were cross tabulated with the following variables namely, age, income groups, education level, designation, marital status, gender, number of children and colleges of the respondents. The results of the tabulations were that amount of premium, reputation of the company, fast handling of claims and quality of customer service were the most important factors. These factors were in relation to the activities of the insurance companies. The least important factors again were the societal or tribal norms, advertisement and members of the religion. The major difference that was noted between those who had life assurance policies and those who did not have was that those who did not have would be most influenced to purchase the same by the reputation of the company. There is opportunity for further research especially on other factors that can pressure decisions regarding the purchase of life assurance than the ones I came up with. Additional study can also be done on other reference groups and their influence on the life assurance purchase places and comparisons made. A correlated study could be carried out on organizations providing'tbe life assurance to identify the factors they think influence the purchase of life assurance.