The Mauritanian insurance industry has significantly changed over the last few decennaries with the outgrowth of many new houses. Vittas ( 2003 ) describes the Mauritanian insurance industry as one which is comparatively well-developed and whose success underscores the benefits of operating in an environment of macroeconomic stableness and sound ordinance, free from the permeant premium, merchandise, investing and reinsurance controls that have bedevilled the insurance markets of so many developing states around the universe.Though being a little island, Mauritius includes a big figure of insurance companies which are either local or international 1s.
Harmonizing to the African Fixed Income Guide Book ( 2006 ) , around 22 insurance companies operate in the state. Some illustrations include Mauritanian Eagle Insurance, Albatross Insurance, Life Insurance Corporation of India amongst others. Vittas ( 2003 ) points out that, despite the big figure of insurance companies in Mauritius, the sector is characterised by a extremely oligopolistic construction with a few companies keeping the king of beasts ‘s portion of the market. The three largest groups incorporate SICOM, Swan/Anglo Mauritius and BAI, stand foring around two-thirds of entire industry assets, with SICOM being a state-owned company ( afdb.org, 2006 ) .Furthermore, insurance companies are major participants in the contractual nest egg market. As noted by Vittas ( 2003 ) , Mauritius belongs to a choice group of developing states where contractual nest eggs ( i.e.
, nest eggs with insurance companies and pension financess ) exceed 40 per centum of GDP and stand for a major possible force in the local fiscal system. Despite being claimed as extremely concentrated, the insurance industry is a competitory one, runing with high efficiency and sensible profitableness. Vittas adds that the profitableness of the insurance sector is healthy, but non inordinate.
Although the Mauritanian insurance sector is seen as being well-regulated and policyholders feel that their money is in safe custodies ( Jagoo, 2011 ) ; this industry suffers from considerable cyclicality which is linked to the impact of cyclones, the conditions predominating in fiscal markets and other cause of big but infrequent losingss ( Vittas, 2003 ) . However, Vittas argues that reasonable usage of reinsurance installations may protect local companies from this job. It is of import to advert here that the insurance companies are regulated and supervised by the Financial Services Commission ( FSC ) through the Insurance ( Amendment ) Act 2007.The services provided by the Mauritanian insurance companies are life insurance, personal insurance, motor insurance and general insurance. The figure below shows the different insurance policies in Mauritius.
Breakdown on general insurance policies by category
Beginning: FSC, 2009Info2Finance ( 2010 ) states that the most important insurance in Mauritius is motor insurance and adds that life insurance is favoured by revenue enhancement inducements.
Consumer Buying Behaviour of Insurance
Consumer behavior refers to how persons make determinations to pass their available resources ( clip, attempt, money ) on consumption-related points ( Schiffman and Kanuk, 2006 ) .
It besides includes the survey of what persons buy, why they buy, when they buy, where they buy, how frequently they buy and the usage frequence. Peter, Olson and Grunert ( 1999 ) stated that consumer behavior is dynamic which involves exchange and interaction between affect and knowledge, and behavior and environmental events.There are fundamentally four types of purchasing behavior which is determined by the degree of engagement in the purchase determinations ; and the importance and strength of involvement in a merchandise in a peculiar state of affairs: Routinised Response Behaviour, Limited Problem Solving, Extended Problem Solving and Impulse Buying. The purchasing behavior faced by insurance clients are extended job work outing as buying this merchandise requires important information and a great trade of witting attempt.It is critical to advert about consumer behavior as Hawkins and Mothersbaugh ( 2007 ) argue that all selling determinations are based on premises and cognition of consumer behavior. Furthermore, understanding consumer behavior is critical to sellers as it helps in supplying value and client satisfaction ; sectioning the markets consequently ; efficaciously mark clients ; place the merchandise ; create competitory advantage ; and bettering selling schemes to invent new merchandise or better an bing one ( MarketingTeacher.com, 2011 ) .
To better understand consumer behavior, it is of import to see how consumers go about in their purchase behavior as illustrated below.Harmonizing to Rohan ( 2010 ) , there are three types of influences of consumer behavior viz. :
Pascale et Al.
( 2007 ) suggest that consumers behave otherwise depending on state of affairs and situational influences are categorised into five dimensions: Purchase Task, Temporal Effects, Antecedent State, Physical and Social Surroundings.
Psychological influences, termed as inferred internal influences, are factors within the persons on which companies have no control. The psychological factors comprise of motive, perceptual experience, personality, life style and acquisition.
Rashotte ( 2008 ) defines societal influence as alteration in an person ‘s ideas, feelings, attitudes, or behavior that consequence from interaction with another person or a group. Rashotte farther concurs that societal influence is the procedure by which persons make existent alterations to their feelings and behavior as a consequence of interaction with others who are perceived to be similar, desirable, or expert. Social influences include factors like mention group, societal category, household, function and position, and civilization.