Factors influencing the uptake of insurance services among youths in Uganda: a case study of School of Statistics and Planning, Makerere University

Abstract

This study investigates the factors influencing the uptake of insurance services among youths in Uganda. A descriptive cross-sectional study with 100 youths explored social demographic factors, attitudes towards insurance products, and service-related factors on the decision-making process. Findings reveal a notable gender disparity in the sample, with 75% of respondents being male, and a concentration of participants within the 21-25 age group. A majority of respondents hold a University Degree, reflecting a high level of educational attainment. The study identifies education as a significant predictor, with higher educational attainment linked to a greater likelihood of considering insurance. Employment status emerges as a key factor, with employed individuals demonstrating a lower inclination towards insurance coverage. In terms of product-related factors, positive sentiments are predominant, with a substantial percentage expressing agreement on the clarity of insurance product features, transparency in pricing, and regular product design updates. Dissenting opinions highlight areas for improvement, suggesting the need for insurers to address concerns and refine their offerings. The study underscores the importance of tailored marketing strategies that consider gender, educational backgrounds, and employment status to enhance engagement and appeal. Furthermore, the research examines service-related factors, revealing positive perceptions of communication channels, marketing strategies, and prompt services. Areas for improvement, such as customer query responses, are identified, emphasizing the need for enhanced customer service training. Bivariate and logistic regression analyses provide statistical insights into the associations between demographic variables and the likelihood of insurance uptake, highlighting the significance of factors such as gender, age, education, health challenges, and disability status. The study concludes with a set of strategic recommendations for insurance firms, including the development of inclusive marketing strategies, targeted educational initiatives, and tailored approaches for diverse employment scenarios. Addressing dissatisfaction concerns and leveraging positive perceptions in marketing activities are crucial for enhancing overall customer satisfaction and engagement. These findings contribute to the understanding of the complex decision-making process among youths regarding insurance uptake and provide actionable insights for industry stakeholders.