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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Factors Influencing Demand for Micro Insurance Services in the Insurance Industry in Kenya

Zulekha Ndurukia, Agnes W. Njeru, Esther Waiganjo

http://dx.doi.org/10.6007/IJARBSS/v7-i7/3092

Open access

This article assessed the factors influencing demand for micro insurance services in the insurance industry in Kenya. In research methodology, the study adopted cross sectional survey design. The target population was insurance service providers in Kenya licensed by the Insurance Regulatory Authority (IRA). Sampling technique was stratified random sampling. The research instrument was a questionnaire. Analysis of the data was done using (SPSS). Analysis of data was done using descriptive and inferential statistics. Regression and correlation analysis was done to test the relationship between the study variables. The study findings indicated that there was a positive and significant influence between factors and the demand for micro insurance. The study concluded that micro insurance demand is affected by economical and structural factors and that the potential is yet to be exploited. The study recommended that awareness and education be conducted to the intended mass; flexible and convenience payment option be availed; easy access to credit; the regulator to put in place a framework for micro insurance and the government to offer subsidies and incentives towards micro insurance services.

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