FACTORS AFFECTING MARKETING OF INSURANCE SERVICE IN ADDIS ABEBA

Abstract

The aim of this study is to assess the challenges faced in insurance while marketing their products. Insurance companies encounter challenges in marketing their products due to different factors. The study tries to answer what factors are affecting the insurance market and how they are affecting. Regarding the research methodology, non probability sampling technique was used in selecting the respondents. Study has been obtained from bothprimary and secondary sources. A questioner was administered by the researcher. Data collected from respondents is analyzed using descriptive statistics. From the findings high number of respondents believe that competition and lack of proper advertisement.The study concluded that complex procedures in claims management, failure to adopt information technology strategy affected the marketing of the insurance service and mistrust in insurance relationships between insurance competition is also the major factor affecting the insurance marketing because the competition in the insurance industry is based on price reduction rather than service quality. The study recommends Insurance companies need to select efficiency channel of advertisement and improve on delivery of quality of insurance services, they can do this by advertising over and over again in a creative, memorable and catchy way to attract more customers.Insurance companies should avoid the existing price war and unfair competition among them