An Analysis fo the Impact of COVID-19 on Whole Life Insurance Policy in Chipata and Petauke District of Eastern Province, Zambia

Abstract

The COVID-19 pandemic brought unprecedented challenges to various sectors, including the insurance industry. This dissertation investigated the impact of the pandemic on whole life insurance policies in Chipata and Petauke Districts, focusing on changes in demand, financial stability and claims experiences of policyholders, and adaptive strategies employed by insurance providers. Through a mixed-method approach integrating quantitative questionnaire responses and qualitative interview insights, this study provided a nuanced understanding of the implications of the pandemic on the insurance landscape. The findings revealed a nuanced pattern in the demand for whole life insurance policies, driven by economic uncertainties, heightened risk perceptions, and varying socioeconomic factors. Despite financial difficulties policyholders face, whole -life insurance policies emerge as crucial financial safeguards, providing stability and peace of mind during times of crisis. Insurance providers demonstrated agility and resilience in adapting their strategies, leveraging digitalization, product innovation, and customer-centric approaches to meet evolving customer needs and market demands. This study will undoubtedly contribute to the existing literature by integrating insights from behavioral economics, examining broader market dynamics, and considering policy implications. Recommendations are provided to enhance customer engagement, strengthen digital capabilities, foster product innovation, facilitate collaboration, and promote long-term sustainability within the insurance sector. By addressing the challenges and seizing opportunities presented by the pandemic, insurers can navigate uncertainties and contribute to the resilience and sustainability of the insurance landscape in Chipata and Petauke Districts and beyond.