Examining the influence of the treating customers fairly concept on consumers’ purchase intention for non-life insurance products

Purpose This study aims to examine the influence of Treating Customers Fairly (TCF) on consumers’ purchase intention for non-life insurance products in South Africa. Design/methodology/approach A quantitative, cross-sectional research design was used, using an online survey distributed through social media platforms. A total of 241 valid responses were analysed using structural equation modelling (SEM). Findings The study revealed contrasting effects of TCF standards on non-life insurance purchase intentions. Consumer willingness to acquire supplementary coverage increased by the first three TCF principles: organisational culture and governance structures, appropriateness of product offerings, and transparency in communications. These principles reduce perceived risk and uncertainty, thereby enhancing their confidence and willingness to proceed with a purchase. In doing so, they create favourable conditions that actively encourage consumers to make purchase decisions. Conversely, purchase intentions diminished when influenced by the following principles: advisory quality concerns, service delivery expectations, and post-purchase accessibility limitations. While these principles are essential, the observed decline in purchase intentions may potentially be explained by slower decision-making processes, increased perceived costs or psychological resistance arising from their stringent application. Practical implications The study suggests that implementing the first three principles fosters an environment of customer satisfaction and trust, which are associated with stronger purchase intention. This highlights the importance of aligning business practices with customer-centric values to strengthen customer relationships and support long-term organisational success. Originality/value To the best of the authors’ knowledge, this study is among the first to explore how the TCFs influence consumers’ purchase intention, following recent regulatory changes within South Africa’s financial sector.