Abraham Maslow's Concept Of The Hierarchy Of Needs

An enlightened consumer is an empowered consumer. An aware consumer not only protects himself from exploitation but induces efficiency, transparency and accountability in the entire insurance sector. In this regard, one cannot help thinking of Maslow's concept of the Hierarchy of Needs. Abraham Maslow, a psychologist, introduced this idea in his 1943 paper, A Theory of Human Motivation. The well-known theory lists human needs within a pyramidal structure to show how we prioritize certain basic needs before moving on to the next rung of needs. Starting from the base of the pyramid, the needs that motivate human behaviour, according to Maslow, are as follows:
1. Physiological
2. Safety
3. Belongingness and love
4. Esteem
5. Self-actualization and self-transcendence
The physiological needs represent the most basic needs that determine our survival- e.g. food, water, sleep, warmth, etc. The safety needs come next and include shelter, healthcare, a steady income, etc. These also represent survival needs, but are not as necessary to survival as are the physiological needs. Safety is followed by belongingness and love (social needs), esteem (the need for self-worth and

In view of the economic value of their contribution to the family, housewives too need insurance cover. Even children can be considered for insurance in view of their future income potential being at risk. So how does Malsow's theory translate into the realm of personal finance, particularly insurance? As you probably have surmised already, insurance represents the safety needs which make up the second-lowest rung on the Maslow needs pyramid. As soon as man has fulfilled his basic survival needs by gathering enough food, finding shelter from the elements, and so on, he will start looking at the next level of needs- safety and security; in other words, insurance. And the service value chain of insurance goes like