Insurance Literacy, Perception, And Insurance Uptake Among Small, And Medium Enterprises in Jinja City
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Date
2025-09-24
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Makerere University Business School
Abstract
This study investigates the relationship between insurance literacy, perception, and insurance uptake among small and medium enterprises (SMEs) in Jinja City, Uganda. It aims to explore how these factors influence the likelihood of SMEs obtaining insurance coverage, which is critical for their financial security and resilience against business risks. A cross-sectional survey design was employed, targeting a population of 77 registered SMEs with insurance coverage in Jinja City. Data was collected from a self-executed inquiry that assessed insurance literacy, perception, and uptake. The analysis included descriptive statistics, Pearson correlation, and multiple hierarchical regression to evaluate the relationships among the variables. The study found a significant positive relationship between insurance literacy and insurance uptake (r=0.507, p<0.01), indicating that increased knowledge, positive attitudes, and behaviors toward insurance correlate with higher uptake rates. Additionally, perception, particularly trust and quality of insurance products, was positively associated with insurance uptake (r=0.409, p<0.01). The combined influence of insurance literacy and perception explained 25.6% of the variance in insurance uptake among SMEs, suggesting that while both factors are important, insurance literacy is the stronger predictor. This research contributes to the limited empirical literature on insurance uptake among SMEs in Uganda, highlighting the critical role of insurance literacy and perception in enhancing insurance coverage. The findings underscore the necessity for targeted educational programs and transparency in insurance offerings to improve uptake, thereby fostering the resilience and sustainability of SMEs in developing economies. Future research is encouraged to explore additional factors influencing insurance uptake and to expand the geographical scope for broader comparative analysis.
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This is a master's thesis.
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Mugimba, M. (2025) Insurance Literacy, Perception, And Insurance Uptake Among Small, And Medium Enterprises in Jinja City. Makerere university business school, Kampala Uganda.