Assessment of the marketability of micro-insurance products by insurance sales agents

Abstract

The objective of the study was to examine the marketability of micro-insurance products under insurance agents. Primary data was obtained from respondents in Central region, Kampala. This quantitative cross-sectional study involved distribution of 100 sets of questionnaires to respondents who were licensed by IRA and registered as insurance agents for the different insurance companies operating in Uganda. Frequency tables, cross tabulations and multinominal logistic regression were performed on the variables in the study using STATA 15.0. In the univariate analysis, slightly over half of the respondents were aged 25 and below (51.4%), The age range of 35-40 had the smallest percentage of respondents (5.4%). Slightly over half of the respondents (56.8%) were male. Almost all the respondents (91.9%) had attained tertiary level of education. Over half of the respondents agreed that clients were not willing and able to pay for micro-insurance (54.1%). Majority of the respondents agreed with micro-insurance serving as a factor for increase in insurance uptake (97.2%). In the bivariate analysis, there was a relative significant relationship between gender, age, percentage of policies sold in rural areas compared to urban areas, group micro-insurance a better cover option for people with similar needs and marketability of micro-insurance products. In the multi-variate analysis, marketability of micro-insurance products was directly influenced by age and gender (OR= 2.2 and OR=1.7) respectively. The insurance companies should ensure proper sales promotion and pricing of micro-insurance products for value maximization to their policyholders and potential clients. All industry players should organize education to members of the public to demystify people’s perception about micro-insurance policies and compensation. The Insurance Regulatory Authority (IRA) should enforce regulations on compensation to create public confidence about micro-insurance services. Proper regulation of the sector would ensure a level playing field and rid the industry of unethical practices.