Evaluating access to insurance services by micro small and medium enterprises in Zambia: A case of MSMES in Lusaka district

This study aimed at assessing the availability and accessibility of insurance services for Micro, Small, and Medium Enterprises (MSMEs) in Lusaka District, Zambia, while identifying the challenges faced by these businesses in accessing such services. The research was guided by three main objectives: to ascertain MSMEs' perceptions regarding the importance of insurance for risk management, to evaluate the challenges faced by MSMEs in accessing insurance services and to develop strategies to enhance access to insurance services for MSMEs in Lusaka. A descriptive research design was employed, utilizing a stratified random sampling method to select a sample size of 80 MSME owners from key markets in Lusaka. Data was collected through self-administered questionnaires and analyzed using the Statistical Package for Social Sciences (SPSS). The coefficients in the model highlight the contributions of each predictor to access to insurance services. It indicates a baseline level of access (p = 0.028). Economic viability and knowledge levels are strong predictors, with significant positive relationships (B = 0.283, p = 0.000 and B = 0.060, p = 0.001, respectively), suggesting that both factors enhance access to insurance. Additionally, the availability of insurance products also plays a crucial role, with a positive coefficient (B = 0.242, p = 0.001), emphasizing its importance in facilitating access for MSMEs in Lusaka. These findings underscore the critical roles of economic viability, knowledge, and product availability in enhancing MSMEs' access to insurance in Lusaka. The study recommends enhancing educational initiatives to improve awareness and understanding of insurance products among MSMEs. Insurance companies should simplify their offerings and build trust through transparent communication. Additionally, tailored insurance products should be developed to meet the specific needs of MSMEs. Collaborative efforts between the government and insurance providers are essential to monitor and evaluate insurance uptake effectively.