Insurance Inclusion in Uganda: Impact of Perceived Value, Insurance Literacy and Perceived Trust

Abstract

The study examined the impact of perceived value, insurance literacy and perceived trust on insurance inclusion in Uganda. The study employed a cross-sectional design to solicit responses from 400 individuals that voluntarily enrolled on an insurance programme. The study hypotheses were tested using Covariance-Based Structural Equation Modelling. The results showed that perceived value, insurance literacy and perceived trust have a significant and positive prediction of insurance inclusion in Uganda. However, perceived trust explained more of the variations in insurance inclusion than perceived value and insurance literacy. Overall, the predictor variables explained 63.2% of the variance in insurance inclusion. This study contributes to the limited nascent literature on insurance inclusion. The implication of this study is that insurance providers need to focus on trust and delivering value to customers in order to promote insurance inclusion. Further, the study proffers advice to policymakers to include insurance literacy in the national financial inclusion strategies to foster insurance inclusion.