FACTORS AFFECTING SALES PERFORMANCE OF CROP INSURANCE AT ETHIOPIAN INSURANCE CORPORATION

Abstract

This study had examined factors within insurance institutional and personal framework that affect sales performance of crop insurance at Ethiopian Insurance Corporation. Primary data were collected using interview from the top management of the corporation to find out the factors behind the poor performance of crop insurance and then collected using questionnaires from 204 respondents consisting of the corporation’s management staff and commercial farmers who were chosen using a combination of census, stratified and simple random methods. The data collected were carefully edited, coded, encoded using spreadsheet, and analyzed by using latest SPSS i.e. version 20. The results of the analyses revealed that awareness, accessibility and prompt service, professional activities by those selling insurance, premium and scope of policy cover were identified by the top management as key factors determining the sales performance of crop insurance. In accordance with existing empirical literature the results of the present study have supported the established relationship between sales performance of crop insurance and institutional and personal factors. The result of the regression analysis showed that the identified factors (Awareness, Accessibility & prompt service, Professionalism, Premium and Scope of cover) have significant relationship with sales performance of crop insurance. According to their respective magnitude, awareness level of commercial farmers have the strongest positive relationship and scope of policy cover have relatively lower positive impact on sales performance of crop insurance. Premium is the only factor with a negative relationship with the sales performance of crop insurance. With these findings, the study provides many implications to boost the sales performance of crop insurance. It shows that if these factors are taken in to consideration by EIC and other insurance companies, sales performance of crop insurance can be significantly improved.