Browsing by Author "Getachew, Legesse"

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    Identification and Analysis of Determinant Factors for the Growth of Non–life Insurance Gross Written Premium in Ethiopian Insurance Industry, in the Case of some Selected Insurance Companies
    (A.A.U., 2019-06) Getachew, Legesse; Zewdie, Shibre(Dr.)
    Insurance is one of the major risks mitigating mechanism in modern economy. In Ethiopian insurance industry the non-life insurance growth of gross written premium for the past 5 years have been grown on the average of 17.5%. This is significantly above the economic growth of the country. Though there is a rapid growth rate in the sector as compared to other countries, insurance penetration rate and density is at infant and at the very low stage. For the year 2016/2017 Ethiopian insurance industry non life insurance premium penetration rate is below 1% and insurance density is birr 52.00. The objective of this study is to identify and analyze the factors that affect the growth of non life insurance gross written premium. In order to achieve the objective both primary and secondary data were used. Primary data collected by means of structured questionnaires which were distributed to employees of some selected insurance companies which were operated over 20 years. They were asked to rate their opinion according to a 5-point Likert scale ranging from strongly disagree to strongly agree levels. And Secondary data were collected from the selected seven insurance companies of Ethiopia and from National bank of Ethiopia. The result indicated that there was a statistically strong correlation between the growth of non life insurance gross written premium and GDP agriculture, GDP service and GDP industry. And there was strong and statistically significant positive correlation between non life insurance gross written premium and number of branches. Furthermore, the result showed that predictor variables, variables like, claims expense, operating expense, underwriting operation, Intermediaries, GDP services, GDP agriculture, No. of branches, capital, and new product and NBE regulation made a statistically significant prediction in influencing/predicting the dependent variable, non life insurance GWP. The results are presented using tables and figures. Therefore, the finding of this thesis recommends that Government need to sustain economic growth, insurance companies need to increase capital and expand branches (outlets).