Investigating Factors Influencing Attitude of Life Insurance Customers: The Case of Ethiopian Insurance Corporation (EIC)
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Date
2015-06
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Addis Ababa University
Abstract
This research is designed to investigate factors influencing buyers’ attitudes towards life insurance policy purchase in Ethiopian Insurance Corporation (EIC) and which factors significantly affect buyers’ attitude to the purchase of life insurance policy.
Primary data was collected through structured questionnaires. The questionnaires were distributed to a sample of 377 buyers of life insurance policy from EIC. These questionnaires were distributed to active policy holders of residents of Addis Ababa. To this end, non- random convenience sampling has been undertaken. Meanwhile, out of the distributed questionnaires 345 were returned.
Data collected is coded, cleaned and analyzed using Statistical Package for Social Sciences (SPSS) version 16.0.Statistics used in the data analysis includes, frequency counts and percentages; spearman correlation analysis technique was also used to test for the strength of the relationships.
The study revealed that on the basis of the data obtained from the respondents and results of the tests, age, number of dependents, and affordability of the premium all have a strong impact of varying degrees on attitudes towards life insurance purchase. However, sex, religion income level ,method used by sales agents, efficiency of claim handling all have proved not to have a significant impact on life insurance purchase attitude of buyers.
The conclusion for the result described above is that among the variables which have been analyzed deeply age, number of dependents, and affordability of premium have showed a strong association or dependence in a positive direction with the variable attitude of buyers. Therefore if sufficient efforts, marketing budgets are allocated according to their Age, Number of dependents they have and the level of price (premium Sensitivity) of the potential customers, the research result suggests that EIC life insurance profit and market share portfolio can improve significantly.
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Ethiopian Insurance Corporation, life insurance policy, buyers’ attitudes