The determinants of Motor Insurance Profitability in the Ethiopian Insurance Industry
| dc.contributor.advisor | Assefa, Teklegiorgis (Assistant Professor) | |
| dc.contributor.author | Ayehu, Desalegn | |
| dc.date.accessioned | 2022-11-21T06:03:15Z | |
| dc.date.accessioned | 2023-11-04T13:49:12Z | |
| dc.date.available | 2022-11-21T06:03:15Z | |
| dc.date.available | 2023-11-04T13:49:12Z | |
| dc.date.issued | 2022-06 | |
| dc.description.abstract | The purpose of this study was to analyze the determinants of motor insurance profitability in the Ethiopian insurance industry. The study used longitudinal panel data which encompasses both cross-sectional and time-series data. The total population of the study was 18 insurance companies operating in Ethiopia. Panel data for six consecutive fiscal years from 2015/16 to 2020/21 from six insurance firms were collected. Purposive sampling was used by selecting those insurance firms which separately publish motor insurance data on their annual reports. The dependent variable was Return on Assets (ROA) which measures the profitability of Insurance firms. The independent variables were loss ratio, motor premium growth, age of the firm, and size of the firm. A quantitative research approach was applied. Multiple panel regression analysis was applied. Generalized Least Square (GLS) regression was also applied to get the best estimates. Data were processed using STATA 15. The findings of the study indicated that the loss ratio showed a negative significant effect on motor insurance profitability at a 5% significant level. But the age of the firm showed a positive effect on motor insurance profitability but at a 10% significance level. The rest independent variables size of the firm and the motor premium growth rate showed an insignificant effect on motor insurance profitability. Based on the findings of the study the researcher recommended that the management of insurance firms should control their loss ratio by designing stringent follow-up of the claim department and devising better risk management techniques to get better profitability | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/32654 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Profitability | en_US |
| dc.subject | Motor Insurance | en_US |
| dc.subject | Insurance Industry | en_US |
| dc.title | The determinants of Motor Insurance Profitability in the Ethiopian Insurance Industry | en_US |
| dc.type | Thesis | en_US |