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.
Ackah, C. & Owusu, A. (2012). Assessing the knowledge of and attitude towards insurance in Ghana. Paper presented in Research Conference on Microinsurance, Twente.
Akotey, O.J., Osei K.A & Gemegah A. (2011). The demand for micro insurance in Ghana. Journal of Risk
Finance. 12(3), 182-194.
Akter, S. (2012). The role of micro insurance as a safety net against environmental risk in Bangladesh.
Journal of Environment and Development, 21(2): 263-280.
Akter, S., Brouwer, R., Beukering, P.Van., Silver, E., Frech, L., Choudhury, S. and Aziz, S. (2011). Exploring
the Feasibility of Private Micro Flood Insurance Provision in Bangladesh, Disasters, 35(2): 287-307.
Aliero, H.M & Ibrahim, S.S (2011). An Analytical study of the Determinants of Insurance in Rural Areas of Nigeria. In Book of readings Dept of Economics, University of Abuja, forth coming.
Arrow, K.J. (1963). Uncertainty and the welfare economics of medical care. American. Economic Review,
53: 941-973.
Arrow, K.J. (1964). The role of Securities in the Optimal Allocation of Risk bearing. Review of Economic
Studies; 31: 91-96.
Arun, T., Bendig, M., & Arun, S. (2012). Bequest motives and determinants of micro life insurance in
Sri Lanka. World development 40 (8): 1700-1711.
Bardhan, P., Bowles, S., & Gintis, H. (2000). Wealth Inequality, wealth constraints and economic
performance. Handbook of Income distribution, 1, 541-603.
Barone, L.R. (2011). Exploring Household Microfinance Decisions: An Econometric assessment for the
case of Ghana. Georgetown University.
Bauchet, J. (2013). Essays on financial access in developing countries. New York University.
Beenstock, M., Dickinson, G. & Khajuria, S. (1986). The determination of life premiums: An international cross-section analysis 1970-1981. Insurance: Mathematics and Economics, 5(4), 261-270.
Bendig, M., & Arun, T. (2011). Enrolment in Micro Life and Health Insurance: Evidences from Sri Lanka.
Beiner, C. (2011). Pricing in Microinsurance Markets (Working Papers on Risk Management and
Insurance No. 106). St. Gallen, Switzerland: Institute of Insurance Economics, University of St.
Galle.
Bhat, R. & Jain, N. (2006). Factoring affecting the demand for health insurance in a micro insurance
scheme. Journal Institute of Management, Ahmedabad
Browne, M. J., & Kim, K. (1993). An international analysis of life insurance demand. Journal of Risk and
Insurance, 616-634.
Cameron A. C., Trivedi, P. K., Milne, F., & Piggott, J. (1988). A micro econometric model of the demand
for health care and health insurance in Australia. The Review of economic studies 55(1) 85–106.
Carter, M.R., & Barrett, C.B. (2006). The economics of poverty traps and persistent poverty: An asset-
based approach. The Journal of Development Studies, 42 (2), 178-199.
Carter, M. R., Cheng, L., & Sarris, A. (2011). The impact of interlinked index insurance and credit
contracts on financial market deepening and small farm productivity. In Annual Meeting of the
American Applied Economics Association, Pittsburg PA, July (pp. 24-26)
Cenfri: Kenya micro insurance landscape (2010), Market regulatory analysis, Cenfri, Stellenbosch
Chankova, S., Sulzbach, S., and Diop, F. (2008). Impact of mutual health organizations: evidence from
West Africa. Health Policy and Planning, 23(4), 264-276
Chen, K., Hu, W., Xiao, C., and Xing, L. (2013). Smallholder participation in hog insurance and willingness
to pay for improved policies: Evidence from Sichuan province in China. ILO Microinsurance
Innovation Facility Research Paper, (28).
Chummum, Z. B. (2012). Evaluating Business Success in the Micro Insurance Industry in South Africa. Unpublished, Doctoral dissertation, North-West University.
Churchill, C., & Matul, M. (2006). Protecting the poor. A micro insurance compendium, Genf: International Labour Organisation.
Clarke, D., & Kalani, G. (2011). Micro insurance Decisions:
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode