Decoding the Mind of Yangon Consumers: Boosting Life Insurance Adoption with Consumer Insights ??

This study, conducted in 2020, aimed to understand the impact of sociodemographic factors, trustful beliefs, perceived product benefits, perceived product risks and financial literacy on consumer attitudes and purchase intentions for life insurance in Yangon city. The low penetration rate of insurance in Myanmar, particularly for life insurance, presents opportunities for insurers. Therefore, by analyzing the factors influencing consumer attitudes and their impact on purchase intentions, this research intends to guide life insurance companies in developing effective marketing strategies to increase their customer base and contribute to the sector's growth in Myanmar's economy.

Background

• Myanmar's insurance market opened to foreign insurers in 2019, but life insurance penetration remains low.
• Preexisting attitudes, lack of awareness, and cultural beliefs hinder life insurance adoption.
• Understanding consumer attitudes is vital for shaping successful marketing strategies.
• This study aims to identify factors influencing attitudes and their connection to purchase intentions.
• Findings will benefit life insurance companies and academic research in consumer behavior.

Research Methodology

The research employed a deductive approach with a descriptive research design and a quantitative method. Primary data was collected from 623 respondents through survey questionnaires, and reliability testing was conducted using Cronbach's alpha. Descriptive analysis, Chi-Square test, and multiple regression analysis were used for data analysis.

Insights

Sociodemographic Factors

Gender, education level, marital status, number of dependents, and possibly age and occupation significantly influenced consumer attitudes. Monthly income, however, did not play a role in shaping attitudes.

Trustful Beliefs

Respondents showed higher trust in life insurance as a financial service and in life insurance companies and their agents. However, they expressed the least amount of trust in government regulations.

Perceived Product Benefits

Consumers perceived life insurance as providing security and peace of mind, but they did not recognize the tax-relief benefits to the same extent.

Perceived Product Risks

Respondents worried about encountering difficulties during the claims process and losing paid premiums in endowment policies.

Financial Literacy

While respondents demonstrated financial literacy, it did not significantly impact their attitude toward life insurance.

Relationship Between Attitude and Purchase Intention

The study revealed that consumer attitude toward life insurance strongly influences purchase intention. A positive change in attitude leads to more than three-fourths equivalent change in purchase intention, highlighting the importance of shaping a favorable attitude.

Suggestions and Recommendations

Clear Product Understanding

Life insurance companies should design products and marketing messages that clearly communicate the range of benefits. Emphasize security, protection, and the potential for reducing monthly income tax.

Building Trust

To enhance consumer trust, insurers must deliver on their commitments and train agents to prevent mis-selling and churning. Leveraging life insurance's credibility as a financial safety net is vital.

Addressing Perceived Risks

Companies should streamline claim processes and reassure customers about endowment product mechanisms to reduce worries about complications and loss of premiums.

Targeted Marketing

Take into account sociodemographic factors like gender, education, marital status, and dependents when creating customer personas for different life insurance products.

Encouraging Purchase Intention

Develop campaigns that effectively communicate the value of life insurance, as respondents show a high intention to purchase but are less likely to actively seek insurance.

Conclusion

This study provides valuable insights into influencing consumer attitudes and purchase intentions for life insurance. By understanding the impact of sociodemographic factors, trustful beliefs, and perceived product benefits, life insurers can tailor marketing strategies and product designs to foster a positive attitude and drive purchase intention. Building trust and addressing perceived risks are crucial steps to inspire confidence in life insurance among the general public in Yangon city.