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The South African Insurance Industry Survey 2016 | 33

There are many factors that adversely impact the insurance
market. How are these factors impacting human behaviours
that drive the insurance market?

At what point does the insurance industry penetrate the
market? At what income level will a person seek to obtain
insurance?
Maslow’s hierarchy of needs is a basic representation of the
needs of human beings. These needs start from the bottom
upward and dictate human behaviour.

The need for safety and security only arises when physiological Self-actualization: Self-fulfillment Flow of needs
needs have been met. To estimate at what income point this achieveing one's needs
is we can look at the cost of living per country. When the full potential, including
income per capita crosses the cost of living by a fair margin, creative acitivities Psychological
physiological needs will have been met and inhabitants will needs
start to strive for safety and security. One way of obtaining Esteem needs:
safety and security is by getting insurance. The preference of prestige and feeling
insurance over other means of obtaining safety and security of accomplishment
will be determined by the reliance that can be placed on the
financial services industry. Belongingness and love needs:
intimate relationships, friends
The impact of insurance might even impact needs further up
the pyramid. For example, life insurance being driven by self- Safety needs: Basic Need for
actualization - the legacy left behind. Regardless, insurance security, safety needs insurance arises
will only be sought once physiological needs are met. The
attainment of safety and security and the profound impact on Physiological needs:
human behaviour can be clearly seen in the research done food, water, warmth, rest
represented to the right.

In a workshop to develop an impact monitoring system, a field
worker gave as an indicator “having a lock on the door”. She
explained that the member had bought a lock for her house
as a result of the loan. Before the loan she had felt “less than
human” - she was not a person that anyone would think of
robbing. Now, although still not having anything worth stealing
she felt a part of the community and could assert her identity
and sense of worth by locking her house.4

It is also a good illustrator of how the needs work. She met her
safety and security needs through the lock. Her needs then
shifted to the next level where she wanted to belong to the
community.

4 Participatory monitoring for poverty reduction and women’s empowerment: small enterprise foundation, South Africa - linda mayoux with Anton Simanowitz