An assessment of Factors Affecting General Insurance Penetration in Lusaka District of Zambia

Background: Zambia's insurance industry faces challenges, as evidenced by low penetration rates and a 2019 report from the Insurance Association of Zambia. A 2020 Price Waterhouse Coopers survey highlighted issues such as premium debt recovery and a lack of understanding of insurance benefits among the population. This research aimed to investigate barriers to insurance awareness and uptake. Methods: A mixed-method approach combined quantitative and qualitative elements to assess insurance penetration in Lusaka District. Guided by pragmatism, the study utilized simple random and purposive sampling, collecting data through structured questionnaires (n=33) and in-depth interviews (n=5). Quantitative analysis employed various statistical techniques, while qualitative data were analyzed through Thematic Framework Analysis. Findings: Results indicated a high level of insurance awareness (mean score 3.9) with a significant association (p = 0.02) between awareness and uptake. Although insurance products were deemed suitable (mean score 3.9), no significant correlation with uptake was found (p = 0.67). Awareness and understanding were identified as key factors influencing insurance uptake, with an adjusted odds ratio of 3.7 (p = 0.04). Conclusion: Awareness and understanding are critical drivers of insurance uptake in the Lusaka District. Recommendations include enhancing educational campaigns, simplifying insurance products, tailoring marketing strategies, and improving regulatory support. Limitations of the study include reliance on self-reported data. Future research should examine how digital literacy affects insurance uptake among diverse demographic groups.