Title: Patronage of insurance products and financial literacy nexus: an emerging market perspective

Authors: Justice Boateng Dankwah; Abdul-Razak Abubakari; Skudjo Bunyanso

Addresses: Department of Entrepreneurship and Business Sciences, University of Energy and Natural Resources, P.O. Box 214, Sunyani, Ghana ORCID: https://orcid.org/0000-0002-8271-073X ' Department of Accountancy, Tamale Technical University, Tamale-Ghana, P. O. Box 3 N/R Tamale, Ghana ' Department of Finance, University of Cape Coast, P.O. Box 5007/PMB, Cape Coast, Ghana

Abstract: The study applies Ajzen's theory of planned behaviour (TPB) to examine financial literacy and its effect on insurance patronage in an emerging market context-Ghana. Adopting a quantitative research design, a convenience sampling technique was utilised to draw respondents. A sample size of 204 respondents was utilised. The chi-square test of association was used to examine the relationship between financial literacy and insurance patronage within a resource constrained context. The study found a significant and positive relationship between financial literacy and insurance patronage. The study concludes that inadequate or the lack of financial literacy results in poor insurance patronage and that, high levels of financial literacy could significantly increase insurance patronage. It is therefore recommended that in planning and executing an integrated marketing communication program for insurance companies, the massage execution strategy should be designed to inform/educate target customers on the need to patronise an insurance policy.

Keywords: financial literacy; patronage of insurance; theory of reasoned action; emerging market; insurance.

DOI: 10.1504/EMJM.2022.121933

EuroMed Journal of Management, 2022 Vol.4 No.2, pp.90 - 103

Received: 02 Jun 2021
Accepted: 18 Aug 2021
Published online: 07 Apr 2022 *

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