The impact of social media on insurance services in Uganda; A case study of CIC Insurance Company

Abstract

The major aim of this study is establish the impact of social media on insurance in Uganda using a case study of CIC insurance company. The study uses primary data collected by the researcher purposely to answer the research questions of the present study. The data are collected from employees of CIC insurance company from all the departments of the company. The data is collected using a structured questionnaire which is self-administered from 66 respondents. We generate various statistics such as frequency, percentages, mean and Spearman’s correlation coefficient using SPSS to analyse the impact of social media on insurance in Uganda. The findings of the study indicate that social media plat forms such as Facebook, Twitter, WhatsApp, YouTube, Google+ and Instagram have positively contributed to the growth of insurance sector in Uganda by increasing its marketability through spread of information to the clients. This was revealed by Spearman’s rank correlation coefficient which was positive and statistically significant in addition to the perceptions of the respondents who strongly agreed that the growth of social media has made them to know and appreciate the existence of insurance services in Uganda. Basing on the above findings, the study recommends that insurance companies increase the use of the social media to disseminate information to their potential clients since it is clear from the study findings that the use of social media will increase their market base. This is due to the fact that social media sites have become the quickest source of information to the people on those sites. Once the information is shared on a given social media cite, it spreads like hot fire out there to the potential consumers. And what is interesting is that even other clients share the information on their pages further spreading the information across the country.