Influence of Social and Institutional Factors on Life Insurance Purchase Decisions: Mediating Role of Agent Influence

Authors

DOI:

https://doi.org/10.58665/njiss.80

Keywords:

Agent influence, institutional factor, life insurance, policy purchase decision, social factors

Abstract

Purpose: This study aims to examine the influence of cultural perception (CP), peer influence (PI), and trust in institutions (TII) on agent influence (AI) and life insurance policy purchase decisions (PPD) among Nepalese consumers. Additionally, it investigates the mediating role of AI in translating these social and institutional factors into actual PPD.

Design/Methodology/Approach: An explanatory research design with a quantitative approach was employed. Cross-sectional data were collected from 385 life insurance policyholders purposively. Data analysis was conducted using SmartPLS 4.0.

Findings: The study revealed that AI significantly mediates the effects of CP, PI, and TII on PPD, with CP, PI, and TII exerting no direct impact but influencing PPD indirectly through AI.

Conclusion: The study validates a relational model of life insurance decision-making in which AI serves not merely as an intermediary but as a behavioral bridge that connects cultural, social, and institutional antecedents to policy adoption outcomes.

Implications: Practically, insurers should strengthen agent capacity, cultural alignment, and institutional credibility to improve uptake. The study contributes a socio-cognitive lens to understanding insurance adoption in emerging markets.

Originality/value: This study uniquely integrates social, cultural, and institutional perspectives to explore life insurance purchase behavior in Nepal, a context that remains under-researched in insurance literature.

JEL Classification: G22, D91, O17, Z13, C38

Author Biographies

Bhim Kumar Thapa, Faculty of Management, Public Youth Campus, Tribhuvan University, Nepal.

Bhim Kumar Thapa is an Assistant Professor at Public Youth Campus, FOM, Tribhuvan University, and a PhD scholar. He has over 20 years of experience teaching accounting and finance at various academic institutions. He has published more than 20 research papers in the field of management in national and international journals. His research focuses on digital financial knowledge, financial literacy, social influence, and financial inclusion in Nepal.

Ramesh Rasik Paudel, Faculty of Management, Public Youth Campus, Tribhuvan University, Nepal.

Ramesh Rasik Paudel is a dedicated academician serving as an Assistant Professor at Public Youth Campus, FOM, Tribhuvan University. He has more than 15 years of teaching experience. He has authored several books on Management and Accountancy. He has been involved in several research works and has published articles in national and international journals. His research focuses on the financial and managerial perspectives of Nepalese organizations.

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Published

2025-07-28

How to Cite

Thapa, B. K. ., & Paudel, R. R. . (2025). Influence of Social and Institutional Factors on Life Insurance Purchase Decisions: Mediating Role of Agent Influence. Nepalese Journal of Insurance and Social Security, 8(1), 64–74. https://doi.org/10.58665/njiss.80

Issue

Vol. 8 No. 1 (2025)

Section

Articles