Herd behaviour and health insurance demand in Uganda
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Date
2025-02-26
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Insurance Training College
Abstract
This study explores the impact of herd behavior on health insurance purchasing decisions in Uganda. Using a convergent parallel mixed-methods design, the study integrates qualitative and quantitative data to examine the relationship between herd behavior and insurance demand, as well as its key determinants. A sample of 399 policyholders, drawn from Uganda’s eight licensed life insurance companies, was analyzed using surveys and interviews. Findings reveal that policyholders heavily rely on peers, family, and personal doctors when selecting health insurance, driven by social validation and a lack of confidence in independent decision-making. While herding can boost insurance uptake, it may lead to suboptimal choices affecting financial planning and satisfaction. The findings highlight the need for behaviorally informed insurance products and contribute to theoretical discussions on social influence in insurance markets.
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Keywords
• Herd Behaviour, • Social Influence, • Behavioural Economics, • Risk Perception, • Health Insurance Uptake, • Insurance Awareness