Factors affecting insurance awareness and uptake among students of Makerere University

Abstract

This study examined the factors affecting insurance awareness and uptake among undergraduate students at Makerere University. The study was conducted in response to the increasing financial risks faced by students, including illness, accidents, theft, and other emergencies, and the growing need for financial protection mechanisms among young adults. A cross-sectional survey design was employed, and data were collected from a sample of 384 students selected through stratified random sampling. However, 82 valid responses were received, representing a response rate of 21.4%. This low response rate is acknowledged as a significant limitation of the study, raising concerns about non-response bias and limiting the generalizability of findings. Data analysis involved univariate, bivariate, and multivariate techniques using STATA version 15 and Microsoft Excel. The study established that insurance awareness among students was very high, with 98.8% having heard about insurance services and 91.5% understanding how insurance works. However, only 46.3% of the students had insurance coverage, while 53.7% did not. The main reason for not having insurance was lack of income to afford premiums. Demographic characteristics such as age, gender, year of study, college, and place of residence were found to have no significant influence on insurance uptake. However, economic factors, particularly monthly income and source of income, were significant, with students having higher income and those with independent sources of income such as business or self-employment showing higher insurance uptake. Social and attitudinal factors emerged as the strongest determinants of insurance uptake. Insurance knowledge, friends influence, parents encouragement, trust in insurance companies, and willingness to enroll in the future were significantly associated with student insurance uptake. Students with high insurance knowledge were more likely to have insurance, and those whose friends or parents encouraged them were also more likely to be insured. Trust in insurance companies was also found to be a critical factor in determining insurance uptake. The study concludes that while insurance awareness among Makerere University students is high, uptake remains low due to affordability constraints and limited trust. Economic factors and social influences play a greater role in determining insurance uptake compared to demographic characteristics. The study recommends that universities should partner with insurance companies to develop affordable student-friendly insurance packages with lower premiums and flexible payment options. Insurance education should be integrated into the curriculum for all students to improve knowledge and understanding. Peer-led campaigns and mentorship programs should be promoted to encourage uptake, and insurance companies should build trust through transparency and campus-based sensitization. Universities should also consider including a low-cost health insurance scheme in tuition fees to ensure universal coverage at an affordable cost.