Factors influencing the level of awareness of micro-insurance in the informal sector: a case study of Trans-Africa Assurance Company, Uganda

Abstract

The general objective of this study was to investigate the factors influencing the level of awareness of the Microinsurance in the informal sector. The study was guided by the following research questions: What is the relationship between socio-demographic characteristics and the level of awareness ; What is the relationship between people’s standards of living and the level of awareness ; What is the relationship of people’s localities and the level of awareness. The population of the study was the 200 respondents from the different regions in Uganda. The study also used secondary data from an insurance agent Mr. Kawuuzi Alex attached to Trans- Africa Assurance Company. The findings are presented using frequency tables and charts including the reports of the inferential statistics showing the regression and coefficient correlations analysis to test the association between the factors. Univariate analysis, cross tabulations and binary logistic regression analysis was used to show the relationship between independent and dependent variables. The results of the study revealed significant relationships between the level of awareness and various independent variables. These results show a statistically significant between level of awareness and age group (P= 0.002), level of education (P=0.017), job class (P=0.000), Policy holder (P=0.000). The results showed a model with a good fit (P=0.000). The research concluded that Socio-demographic factors also have an effect on the people’s level of awareness of micro-insurance. There was a signifcant relationship discovered in the variable agegroup. This meant that the level of awareness increased with the higher the age group was. It is also significant that the Socio-economic i.e. level of education can contribute heavily on one’s awareness about the micr-insurance and insurance as a whole. The research gave out various recommended insurance firms to organise ICT platforms where new technological innovations can be developed through brainstorming. Further insurance firms should adopt the use of SMS and mobile platforms to transact businesss to encourage motion of information to the public .This will increase the level of awareness of the public towards Micro- insurance