Browsing by Author "Adonay Gebrehiwot Gebreegziabher"

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    The Influence of Innovative Strategies on Insurance Penetration in Ethiopia: The Case of Nyala Insurance S.C
    (AAU, 2024-03-14) Adonay Gebrehiwot Gebreegziabher; Mesfin Fikre (PhD)
    Insurance drives economic growth by managing risk and channeling funds, insurance companies fuel development in every economy. The insurance industry in Ethiopia suffers from a severely low insurance penetration. The penetration rate of insurance in Ethiopia is estimated at 0.32% which is very low compared to other countries. The study was undertaken to investigate the influence of innovative strategies on insurance penetration in Ethiopia. To foster a better understanding of the study variables the evolutionary theory of economic change was utilized. The study used a mixed research methodology and employed a correlational research design to achieve the research objectives. The study evaluated the influence of innovative strategies on insurance penetration in Ethiopia by measuring the level of implementation of innovative strategies. The study chose to focus on the Nyala Insurance S.C. a consistently high performing insurance company located in Ethiopia. The sampling frame of the study consisted 207 insurance professionals; while the sample was 106 individuals drawn from four departments: claims, finance, marketing, and underwriting department. Data was collected through the use of closed-ended questionnaires. Out of the 106 questionnaires disseminated 102 were duly filled and returned. The various demographic features and results obtained were presented using tables. The data collected was then analyzed and simple linear regression analysis was used to show the relationship between the independent and dependent variable. The findings of the descriptive statistics revealed that the level of implementation of innovative strategies is high but leaves room for more to be desired. The inferential analysis evidenced that innovative strategies have a significant positive influence on insurance penetration. The research delivers clear conclusions, actionable recommendations for future research, and insights for key players like insurance firms, investors, and policymakers in Ethiopia.