Analysis of the variables influencing insurance adoption and usability by wholesale and retail businesses in Uganda: a case study of Nakivubo Market Center

Abstract

The purpose of this study was to establish the factors that affect insurance adaptation and usability among whole sale and retail enterprises. This was based on the following objectives; to establish how socio demographic factors relate to the levels of insurance adaptation and usability among traders in wholesale and retail enterprises; to find out the extent to which the level of awareness influences the adaptation and usability 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 102 respondents nikuvbo Market center. Systematic sampling technique was used for respondents to be selected to the questionnaire. Data Analysis was carried out using frequency tables, Chi-square, Analysis of variation and binary logistic Regression. Findings revealed that general insurance adaptation and usability has a higher likelihood among traders with very large business size (between $15,000,001 and $30,000,000. and above $30,000,000) and higher levels of education with a percentage (92.2%) as those adopt insurance. It was also observed that traders with higher of education which is 35.3% of the respondents were the most that understood insurance. It was also established that the level of awareness possessed by an individual is highly related to the level of education, and the business Size as those with high level of awareness are the most with insurance (74.0% and 48.6%). 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 taking up an insurance policy.