customer perception and uptake of insurance services in uganda: a case of statewide and uap old mutualinsurance companies

Description

The research explored the relationship between customer perception and uptake of insurance services in Uganda with focus on Statewide and UAP Old Mutual insurance companies. The study envisioned to: examine the relationship between consumer price perception and uptake of insurance services; examine the relationship between customer risk perception and uptake of insurance services; and examine the relationship between customer expectation-perception and uptake of insurance services. The study used a descriptive cross-sectional research design, employing both quantitative and qualitative approaches. The research involved a sample of 346 respondents. Stratified and simple random sampling techniques were used to select the respondents. Self-administered questionnaires and interviews were used in data collection. To determine whether there was relationship a linear relationship between customer perception and uptake of insurance services, Pearson’s correlation coefficient was used. As such, the study findings revealed that customer price perception, customer risk perception and customer expectations perception had a positive influence on the uptake of insurance services. The study concluded that extending insurance services at an affordable price, providing flexible premium payment options and reducing penalty charges on late premium payments could stir uptake of insurance services. In addition, study concluded that helping the public understand their risks or activities, developing insurance services that meet customers’ needs, providing insurance services to the insured as promised, having knowledgeable employees, enhancing technological capabilities, easing access to information in relation to insurance, update customers and having a well-structured procedure to resolve customers’ grievances are critical in increasing uptake of insurance services in Uganda. The study recommends that insurance industry charge customers reasonable premiums, reduce penalty charges and increase customer sensitisation.