Assessing the Relationship between Awareness and Uptake of Insurance Products in Kenya

Abstract

Insurance Regulatory Authority report in Kenya reveals that in the informal sector, players had no sufficient information on insurance to enable them purchase insurance for their businesses. The aim of this study was to assess the relationship between awareness and uptake of insurance products in Kenya. Target population for the study comprised of 1124 teachers in public primary schools in Nakuru Sub-County from which a sample of 92 teachers was drawn using simple random sampling technique. Primary data was elicited from teachers using questionnaires that were administered to teachers using the drop and pick method. Validity in the study was determined using expert opinions while reliability of instruments was determined by computing the Cronbach reliability coefficient from pilot questionnaires. Data analysis was done using descriptive statistics and linear regression done to assess the relationship between insurance awareness and uptake of insurance products. Hypothesis testing was done. The tests were done at a significance level of P= 0.05. The study found out that the level of awareness on insurance significantly influenced its uptake therefore wrong information translated to low insurance uptake. The insurance regulatory authority together with other players in the insurance industry should come up with more robust and reliable mechanisms for disseminating correct insurance information to the public. This would ensure that people make the right choices on insurance, thus enhance insurance uptake