Sustaining an Effective Marketing Approach in the Micro-Insurance Sector of Ghana: A Case of Unique Life Assurance Company Ltd

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This Study investigates the reasons for which most Informal Sector workers of Ghana’s initially sign on to micro-insurance products but are unable to continue payment of premiums till maturity, retirement or till the events insured against actually do occur and how this phenomenon is negating against calls for more of the target market to get insured. The study focused on policyholders of insurance companies offering micro-insurance products to the Informal Sector segment of Ghana. A questionnaire was employed to collect data from micro-insurance policyholders of Unique Life Assurance Company Ltd (ULife). A sample of 60 policyholders was taken and 50 useable ones were analysed. The study was to establish the fact that policyholders are unable to continue paying premiums because of eviction resulting in market relocation and PIA’s abandoning them, use of appropriate delivery channels and measures to arrest the high rate of traders and artisans’ inability to continue with the policy as a result. The results also indicated that the insurance awareness level in the target market is not enough hence the general perception that insurance Companies are only there to swindle traders.In an attempt at improving the performance of the micro-insurance sector through increasing knowledge in marketing of its products, the study suggests that insurers should not rely only on direct sales executives or PIA’s but complement this with the involvement of various local cooperative union executives and market queens in collecting premiums and in claims payment as well to reinforce the existing distribution channels and sale of micro-insurance products to the vulnerable poor. The associated prospects and challenges of rolling out micro-insurance products were also brought to the fore which revealed the perceived risks, benefits and criticisms of this micro-insurance concept.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration,