Factors Affecting the Sales of Non-Life Insurance Policy in Awash Insurance
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Date
2023-07
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Addis Ababa University
Abstract
The purpose of this study was to investigate and asses the factors that influence the sale of non-life insurance policy in the case of Awash Insurance Head Office. Premium rate, process and procedure of claims settlement, sales agent of the company, underwriting process, and promotion or advertisement are assumed as independent variables, whereas, the sale of the non-life insurance policy of the company was assumed as dependent variable of this study. This study was based on an explanatory study design and a quantitative research approach. Respondents for this survey were selected using systematic random sampling from marketing directorate, claim directorate, underwriting Directorate and licensed sales agent of Awash Insurance at Head office. Accordingly, 152 were selected as the respondents of this study. The main finding of this study is that premium rates are the significant influence on sales of non-life insurance policy. It is recommended that insurance companies have to conduct awareness campaigns and explain their products and benefits if the level of sales is to be enhanced. While charging a lower premium can impact the insurer’s profitability, charging higher could result in losing applicants. Maintaining this balance becomes a crucial and challenging process. Thus, it is better to make premium affordable to the customers buying capability
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sales of non-life insurance policy