Effect of Relational Capital, Structural Capital, and Human Capital on the Performance of Insurance Brokers in Zambia

This paper seeks to determine whether relational capital, structural capital, and human capital have positive effects on the performance of insurance brokers in Zambia. The authors use data gathered from chief executive officers by way of a structured survey. The target population of interest are insurance brokers that have operated for at least three consecutive years (i.e., 2019, 2020, and 2021). A review shows that only 45 insurance brokers meet this criterion. The results indicated that relational capital and human capital have positive effects on insurance brokers’ performance in Zambia, whereas structural capital has a negative effect on the performance of insurance brokers in Zambia. The research recommends that insurance brokers should employ qualified staff whom they will later invest in through training and development programs to enhance productivity. The research also recommends that insurance brokers should form partnerships, alliances, mergers, etc., among themselves to compete effectively with the market leaders or form partnerships with other reputable institutions and non-broking entities, such as banks and mobile network operators that cover a wide geographical area and use advanced distribution channels. This paper is unique as it is the first to address the effect of relational capital, structural capital as well as human capital on the performance of insurance brokers in Zambia and highlights areas insurance brokers can work on to improve their performance.