TITLE:
Competitive Strategy Alighnment in Enhancing Insurance Uptake: An Evaluation of Life Insurance Products in Uganda
AUTHORS:
Olobo Maurice, Gerald Kagambirwe Karyeija, Protazio Sande, Ronald Regan Okello
KEYWORDS:
Completive Strategies, Differentiation, Cost Leadership, Distribution Channel and Life Insurance Uptake
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.11 No.2,
April
6,
2022
ABSTRACT: The study examined the effect of competitive strategies on life insurance
uptake in Uganda using Kampala Central Business District as a case study.
Specifically, the study examined the extent to which differentiation strategy,
cost leadership strategy and distribution channel affect life insurance uptake
in Uganda. A cross-sectional research design was used with a mixed research approach
employing both qualitative and quantitative methods of data collection and
analysis. A sample size of 306
respondents was selected from a study population of 1500 using of
Krejcie & Morgan’s table. Data was analyzed using mean and standard deviation for descriptive analysis. Pearson’s correlation and regression
analysis were also used to analyze the relationship between competitive
strategies and life insurance uptake, and to determine the most significant
predicator variable among the independent variables respectively. At bivariate
level, differentiation strategy, cost leadership strategy and distribution
channels had a significant positive relationship with life insurance uptake.
The multiple regressions established that differentiation strategy, cost
leadership strategy and distribution channels had a significant influence on
life insurance uptake. The researchers recommend
that there should be more differentiation of life insurance products and
services offering, as this will enable companies to experience growth in the
areas of premium volumes, market share, and profitability. The researchers also
recommend that life insurance companies should design low insurance premium and
product to allow even low income earners afford life insurance policies; and
that there should be diversified product distribution channels such that
customers are able to access reliable products and services at very competitive
prices.