Factors Affecting the Performance of Insurance Companies of Ethiopia
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Date
2024-01-17
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A.A.U
Abstract
This study sought to determine the variables influencing the performance of selected insurance
companies in Ethiopia, Nyala Insurance Company S.C., and Abay Insurance Company S.C. In this
study, a descriptive and explanatory research design was used. A combination of qualitative and
quantitative research methods was applied. Participants' information was obtained through the use of
a questionnaire. Out of the 350 employees, 168 employees were chosen as a sample using Yamane’s
formula. The empirical data were analyzed using regression analysis and descriptive and inferential
statistics of correlation. An analysis was conducted on the quantitative data obtained via
questionnaires. Five questionnaires with a point Likert scale were used to gather primary data. 168
correctly completed and returned questionnaires were received. The results of the study showed that
the average customer satisfaction score for insurance companies. An excellent insurance company
demands error-free records. This suggested that there were issues with the implementation of
compensation and communication of the insurance's discussed variables. The increase in insurance
premiums had a negative impact on the performance of insurance companies. Based on statistical
analysis, it was found that operating methods have a significant positive relationship with the
performance of insurance companies in Ethiopia. All of the independent factors and the dependent
variable had positive relationships, according to the correlation. According to the regression
analysis's beta values, any increase in the independent variables will also likely result in a
commensurate change in the performance-affecting variables of three specific insurance companies in
Ethiopia (Nyala Insurance Company S.C., and Abay Insurance Company S.C.) Furthermore, it was
discovered that the independent variables influenced the dependent variable and some others expected
to be influenced by factors outside the scope of this investigation. Therefore, it is recommended that
the three insurance companies in Ethiopia (Nyala Insurance Company S.C., and Abay Insurance
Company S.C.) that were chosen for this purpose periodically evaluate their staffing practices. These
three companies were chosen because they demonstrated genuine interest in hiring quality employees.
As such, the chosen insurance companies Ethiopian Insurance Corporation, Nyala Insurance
Company S.C., and Abay Insurance Company S.C. must address client concerns; they must provide
exceptional, timely service; and their understanding of insurance companies needs to be enhanced in
order to address increasingly complex inquiries.
Keywords: Insurance, Factor, Performance