Determinants of micro-insurance subscription amongst households in the tamale metropolis

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In Ghana, the level of demand for microinsurance is low with about 1.6% patronage as against about 5% in Ivory Coast, 8%in Namibia, and 16% in South Africa (National Insurance Commission, 2008). The study generally examines the determinants of the household's subscription for microinsurance products in the Tamale metropolis. Specifically, the study investigates the level of awareness of microinsurance to households and the factors influencing household’s subscription to microinsurance. The study adopts a survey research design with a multistage sampling procedure to collect data on 399 households in the Tamale metropolis. The collected data were analyzed using Excel and descriptive statistics. The result showed that most households were aware of microinsurance and its products. It found out that households received information about microinsurance and its schemes mostly through microinsurance agents and family and friends respectively. The study also revealed, investment, savings mobilization, and risk aversion predominantly influence microinsurance scheme subscriptions positively. However, knowledge, trust, the process of claiming benefits were found to negatively affect household subscriptions to microinsurance schemes. Also, the study revealed that product accessibility and the narrowness of service coverage did not influence microinsurance demand. Therefore, the study recommends that microinsurance companies should increase and prioritize microinsurance education radio/ TV and internet advertisement. Also, training staffs most especially the company's agents in marketing and/or communication.
A thesis submitted to the department of accounting and finance College of humanities and social sciences in partial fulfilment of the requirement for the award of the degree of Msc accounting and finance