Assessments of Insurance Firms’ Productivity: The Case of Ethiopian Insurance Corporation

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Addis Ababa University


The purpose of this study is to assess the productivity of insurance firms, the case of Ethiopian Insurance Corporation. Insurance is one of the major risks mitigating mechanism in modern economy. The existence and survival of financially strong Insurance Companies is therefore inevitable. For Insurers to be reliable and financially sound, their being productive and most importantly knowing what factors makes them productive is very crucial objective. Productivity is a summary measure of the quantity and quality of work performance with resource utilization considered. Regardless of the type of production, the basic concept is always the relationship between the quality and quantity of goods or service produced and the quantity of resource used to produce them. Ethiopian Insurance Corporation was chosen as main area of focus to explore factors influencing productivity so that it can be enhanced by managing these factors. To this end a mixed type of research method was applied to this study. Secondary data was obtained from financial statements. Primary data collection instrument that was employed was structured questionnaire. The questionnaires were distributed to 82 employees of EIC and only 60 were completed and returned. The subjects of the research were identified through sampling of 60 employees working in Ethiopian Insurance Corporation Head office by considering the organizations‟ size, availability of necessary information and their role in their respective sector. The study used regression analysis technique and used STATA SE V14.2 software. The study finding revealed that labor, capital and management practice are positively and significantly affecting productivity in EIC whereas ICT, competition and market positively but insignificantly related. Hence the organization needs to understand and develop mechanism in this regard to increase productivity in the company.


A thesis submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance


Capital, Insurance, Labor, Management Practice