Executive Master of Business Administration

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Browsing Executive Master of Business Administration by Author "Abdi, Bulti"

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    Factors influencing penetration of micro-insurance in Ethiopia
    (Addis Ababa University, 2018-06) Abdi, Bulti; Yitbarek, Takele (PhD)
    The purpose of this study is to identify the factors influencing penetration of micro-insurance in Ethiopian insurance companies. The study adopts a cross-sectional quantitative technique with descriptive and analytical design based on primary data sampled using non probability sampling from 110 executive managements of five insurance companies providing microinsurance and nine years data from the same companies. Five (5) key factors affecting microinsurance penetration in Ethiopia are identified. The Multiple Linear regression model was used for analyising regression results and all relevant diagnostic tests were conducted to validate results. Empirical investigation using the Multiple Linear regression model indicates client awareness, income Level and trust having positive and significant impact on microinsurance penetration rate. Whereas product Price of microinsurance have negative and significant impact on microinsurance penetration rate. The study therefore recommends, amongst other things, intensive awareness creation campaign by all stakeholders about microinsurance product and its benefit among low income people, setting price that does not compromise the ability of clients to pay for essential items such as food and shelter, build trust and provide incentive like tax exemption on microinsurance transaction for provider and put coercive low for non provider to participate in providing microinsurance products taking in to consideration the double advantages that it has in protecting the poor from unexpected loss and alleviating poverty. In addition the government must integrate micro insurance program into its grand strategy in poverty reduction and Growth and transformation plan in striving to become middle income country by 2025.