| Abstract: | Motor insurance is the major class of business that contributes to the overall income of insurance industry. This being said, much of the prospects and challenges that faces the industry highly adhere to motor insurance and remain points of discussion persistently. Therefore, this research intends to focus on one of the recently established insurance company, Tsehay Insurance s.c, and strives to look at the challenges and prospects of motor insurance accordingly. In doing so it has used descriptive approach as its methodology while the population consisted of 101 employees of the company. A structured questionnaire, with a five-point Likert scale was used. whilst all respondents are professionals of the subject. The study selects critical variables a perspective to look at the challenges and prospects surrounding motor insurance. These are questions raised in relation to government policies, inflation, market& competition, traffic accidents, and economic developments. The study finds out that opening to international market, introduction of laws regarding motor, the continuous economic development attributed by investment, as a prospects while increasing traffic accidents, the ill capacity of local insurers and their slow growth to compete in the short term with international companies, the absences of local reinsurers, lack of professionals, and stiff market competition between insurers e.t.c as the major challenges. And in its conclusion, its Bolden the importance of communal exertion, in addition to the company’s sole effort, of industry’s stakeholders’ as much of challenges and prospects emanates externally. |
