The study examines how market intermediaries engage in institutional work in addressing information asymmetries in the marketing of life insurance at the base of the pyramid (BoP).
The research employs a case study methodology to analyse the marketing and uptake of life insurance in the South African BoP market and the effects that intermediaries have on product uptake in this marketplace.
Information asymmetries are apparent at the level of the consumer and insurer, resulting in funeral policies being pushed at the expense of comprehensive assessments of consumer needs. Large insurers have a limited understanding of this BoP market and therefore rely on intermediaries to advise on such knowledge gaps. Intermediaries have a vested interest in maintaining the status quo and therefore inclusive product innovation is stifled. The result is that consumers at the BoP lack agency and become dependent on the intermediaries, often being sold products unsuitable to their needs.
It enhances understanding of how market actors operate in emerging markets and advances discussions on market development, consumer agency and financial inclusion – especially within dualistic environments where end consumers frequently have limited agency. It carries implications for how global firms tailor their market engagement strategies in BoP contexts across regions with differing institutional logics and cultural frameworks.
It provides insight into the motivations and intentionality of various stakeholders in this market. It contributes towards an understanding of institutional work and maintenance within the BoP marketing. It indicates why the institutional status quo persists and the incentives for intermediaries to engage in institutional maintenance often at the expense of the principles – consumers and insurers in this case.
