Assess factors affecting general insurance uptake among micro, small and medium enterprises in Kikuubo market: knowledge, attitude and practice

Abstract

The purpose of this study was to establish the factors that affect insurance uptake among small and medium enterprises. This was based on the following objectives; to establish how socio demographic factors relate to the levels of insurance uptake among traders in small and medium enterprises; to find out the extent to which the level of awareness influences the uptake of an insurance policy and to find out how the size of a business influences traders to take up an insurance policy. The research was descriptive in nature involving both qualitative and quantitative methods which were administered through the questionnaire. The sample comprised of 150 respondents from Kikuubo Market. Probability sampling was used where respondents had equal chances of being selected. Data Analysis was carried out using Chi-square, Analysis of variation and binary logistic Regression. Findings revealed that general insurance uptake has a higher likelihood among traders with very large business size and higher levels of education. It was also observed that Seminars and Classrooms are the most efficient ways through which information about insurance can be delivered to individuals. It was also established that the level of awareness possessed by an individual is highly related to the level of education, the source of insurance information and the business Size. It was therefore concluded that strengthening education system by the government and improving channels through which insurance companies reach out to different categories of individuals should be areas of major focus to increase the level of awareness among individuals since the level of awareness has a significant relationship with all these factors and more so a perfectly significant relationship (p=0.000) with the individuals’ interest in holding an insurance policy.