An investigation on the factors influencing the motor claim rate of insurance benefits in general insurance

Abstract

The major objective of the study was to investigate the factors influencing the motor insurance claim rate in general insurance in Uganda. Secondary data was used and it was gotten from the website kaggle.com. Analysis of data was done using Stata which involved the use of frequency tables, statistical tests like chi squared and multinomial logistic regression model. Participants who were the majority were those aged between 38-60, those whose car age is between 0-10 and participants who had zero number of kids driving. The females were also slightly more than the males. The variables that are significant to the study include number of kids driving, education level, age and marital status. Gender and car age were insignificant to the study. It is important that stakeholders and respective enforcers put more emphasis on the factors that influence motor insurance claims in general insurance because through that they will be able to predict the number of insured who are more likely to make motor insurance claims and plan finances accordingly. I recommend insurance companies to put into consideration the factors that were proven significant according to the study because they affect the number of claims that will come in the company and the company will be able to handle them as planned.