Baseline Assessment of the Microinsurance Needs of Informal Traders in Uganda’s Markets

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    While the benefits of microinsurance products are generally accepted, the microinsurance market in Uganda remains small. As of June 2022, there were only two microinsurance firms in Uganda, one of which is yet to provide microinsurance products. Traditional insurance providers have also claimed a lack of knowledge and data necessary to develop microinsurance products that meet the needs of the population. This study, therefore, attempts to fill this gap by conducting research on the microinsurance needs of the informal economy in Uganda.

    The study focuses on market vendors in seven markets in Kampala as proxy for the informal economy. It sought to answer five research questions:

      • What are the main risks (frequency & impact) that affect market vendors in selected markets?
      • What is the level of willingness to insure against those risks and preferred mode of payment by market vendors?
      • What are the factors that influence decisions to subscribe to microinsurance products?
      • Which additional features (value addition) of an insurance product would informal market vendors be interested in?
      • What are the barriers to microinsurance demand (adoption and usage) among market vendors?

    A mixed methodology was used in which a survey was distributed to four market vendors and a chairperson in seven markets: Nakasero, Wandegeya, Kalerwe, Kasubi, Kamwokya, St. Balikuddembe (Owino) and Kikuubo.

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