Advances in Economics and Business Vol. 4(11), pp. 570 - 576
DOI: 10.13189/aeb.2016.041103
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An Analysis of Perception and Uptake of Insurance Products among Medium-low Income Earners in Kenya

Charles Okeyo Owuor ^*
School of Business and Economics, Faculty of Commerce, Kabarak University, Kenya

ABSTRACT

Although the insurance industry in Kenya has been growing in investment, there have been fundamental challenges in the number of new clients being recruited thus low penetration levels have been reported. The fast market growth notwithstanding, penetration rates remain low, at just 3% of GDP in 2013, 2014 and 2015 is still far below other developing economies. The high level of growth along low levels of penetration could lead the Kenyan insurance industry in crises in the near future. Therefore it is necessary to investigate into the trends in insurance uptake and the contributing factors. This study was designed to analyze perception and uptake of insurance products among medium-low income earners in Kenya on the basis that insurance penetration in Kenya is severely limited, which could have been as a result of the insured perception. The study was conducted using the explanatory research design. Primary data was collected using questionnaires administered to teachers using the drop and pick method. Quantitative data analysis was done using multiple response analysis techniques, mean, mode, standard deviation, percentages and frequencies. The study found out that perceptions on insurance played a key role in insurance uptake as the industry was marred by negative perceptions among potential customers hence low penetration. It is recommended that further research be conducted to evaluate customer experiences arising from insurance clients following the view held by majority insurance holders that they would not purchase insurance in the future.

KEYWORDS
Insurance Uptake, Perceptions, Teachers, Kenya

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Charles Okeyo Owuor , "An Analysis of Perception and Uptake of Insurance Products among Medium-low Income Earners in Kenya," Advances in Economics and Business, Vol. 4, No. 11, pp. 570 - 576, 2016. DOI: 10.13189/aeb.2016.041103.

(b). APA Format:
Charles Okeyo Owuor (2016). An Analysis of Perception and Uptake of Insurance Products among Medium-low Income Earners in Kenya. Advances in Economics and Business, 4(11), 570 - 576. DOI: 10.13189/aeb.2016.041103.