Assessment of Opportunities, Challenges, And Future Prospects of Life Insurance Services In Ethiopia

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Date

2024-04-23

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AAU

Abstract

This study assessed the opportunities, challenges, and prospects of life insurance services in Ethiopia. The research was conducted using mixed research approaches through a descriptive survey design. The study uses both primary and secondary data. Primary data was obtained from the employees of the life insurance department of the 12 insurance companies; secondary data was collected from published and unpublished, past research works. To collect qualitative data, interviewed six senior managers of the life insurance department and used the thematic analysis method to analyze the data. Quantitative data was collected using a seven-point Likert scale questionnaire and analyzed with the help of SPSS software. The total population of this study is 461; all are employed in the life department of twelve insurance companies, and out of these 461 employees, 210 samples are directly included in this study using the simple random sampling method, and the six senior managers are participated in the interviews. Interviewee are selected using the judgmental sampling method. Financial resources, administrative challenges, human resources, products, and services are the internal challenges of life insurance development. Sociodemographic challenges, economic challenges, technological challenges, and industrial challenges are major external challenges. The legal environment is a moderate challenge, and politics is not a challenge for life insurance development in Ethiopia. High market demand, administrative and policy amendments, the growth of commercial banks, and ICT infrastructure development are opportunities for the life insurance business. Employee skill development, introducing new products, focusing on innovation, budget improvement, and adoption of new technologies, accessibility, and expansion of services are internal opportunities for life insurance development. And also that the prospects of life insurance are bright and attractive. It has high market demand, business profit, economic growth, and population growth. Also, this study includes the researcher's recommendations.

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