Exploring Factors that Affect the Performance of Financial Intermediaries in the Insurance Sector

Cedrick Mathisa ORCID iD   & Bibi Z. Chummun ORCID iD  

Issue: Vol.5  No.13 Issue Article 26 pp.2344-2361
DOI: https://doi.org/10.38159/ehass.202451326 | Published online 31st October, 2024
© 2024 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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This article evaluates the prominent factors affecting financial intermediaries’ performance in the insurance industry. It is widely accepted that the performance of financial intermediaries in the insurance industry contributes to both industrial expansion and an increase in the market value of financial service providers. Surprisingly, there is not much research on financial intermediaries’ ability to identify obstacles that hinder their effectiveness. This study thus sought to provide strategies for financial services providers, insurance conglomerates, and senior management to gain a broad understanding and thorough review of the important influential factors that should be considered to enhance the performance of financial intermediaries in the insurance sector.  To investigate the factors that enhance the performance of financial intermediaries, a close-ended questionnaire was developed in which 300 responses were collected at a market conduct authority. A quantitative approach was judiciously selected to analyse the data and identify the relationship between several factors. Using logistic regression models, key socioeconomic characteristics impacting the performance of financial intermediaries were identified including organisation, gender, education, level of education, and experience. By examining the interplay of regulatory frameworks, market conditions, and managerial practices, the study identified key drivers and barriers to success in this industry. It is recommended that future researchers adopt the strategies to further explore the complexities surrounding hedge funds and collective investment schemes. The findings of the study may aid in the development of future innovative product designs for financial intermediaries in the insurance sector.

Keywords: Financial Intermediaries, Financial Intermediation, Financial Sector, Financial Services Providers

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Professor Bibi Chummun is an Associate Professor who teaches Strategic Marketing in the Postgraduate Diploma and MBA programmes at the Graduate School of Business and Leadership, University of KwaZulu-Natal. She obtained her undergraduate degree from Glasgow Caledonian University in the United Kingdom, her MBA from Nelson Mandela Metropolitan University, and her PhD from North-West University in South Africa. Prof. Chummun has authored several papers in collaboration with other academics and students and independently in business science, problem analysis, and solving, specifically in strategic marketing and insurance field. Currently, she is supervising Masters and doctorate students in those fields. She is a member of the Chartered Insurance Institute in the United Kingdom and has also worked in the corporate industry.

Mr. Cedrick Mathisa is currently a PhD student at the Graduate School of Business and Leadership, University of KwaZulu-Natal under the supervision of Prof BZ Chummun, waiting for his exams results soon. Mr. Mathisa is currently working at the Financial Sector Conduct Authority (FSCA), formerly known as the FSB of South Africa and has acquired several years of working experience in the sector.

Mathisa, Cedrick & Bibi Z. Chummun. “Exploring Factors that Affect the Performance of Financial Intermediaries in the Insurance Sector,” E-Journal of Humanities, Arts and Social Sciences 5, no.13 (2024):2344-2361. https://doi.org/10.38159/ehass.202451326

© 2024 The Author(s). Published and Maintained by Noyam Journals. This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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