Factors Affecting Kenyan Farmers` Decision to Purchase Micro-Insurance
Date
2012-10-02
Authors
Forichi, Lovemore
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Abstract
The objective of this research was to establish factors that affect the decision by
farmers in the purchase micro-insurance, with the ultimate goal of making
agricultural micro-insurance providers increase their product uptake among
farmers.
The research was performed in the Narok District of Kenya, which is the bread
basket of Kenyan agriculture. Literature review identified 13 key attributes that
then formed the composition of the proposition. The focus group method was
chosen as the most appropriate research instrument. Focus Group discussions
were held and key outcomes were in line with the literature review findings, but
with different weights attached to the attributes.
The key recommendations are in the majority external influence factors that
include: the need for agricultural micro-insurance providers to build trust among
their target segment; the need to engage the government institutions as they
are the trusted source by the target segment; and the need to tailor make the
insurance product and make the price affordable. The individual influences
include: the need for enhancement of product knowledge among the target
segment; the need to build familiarity with insurance products in general and the
need to simplify product offering.
The key message is that the farmers in Kenya would like to have an agricultural
micro-insurance product that they understand, is reasonably priced, is easily
accessible and is distributed by trusted sources.
Description
MBA thesis - WBS
Keywords
Micro-insurance, Insurance, Agriculture, Kenya