| Abstract: | For insurance companies and other academics researching that particular topic, the growth of
the life insurance industry continues to be a problem. Although there has been a little
improvement in its growth in industrialized countries, it is still in its infancy in developing
nations like Ethiopia. The goal of this study was to identify and analyze those factors influencing
the expansion of Nile insurance companies’ life insurance market. Its main objective was to
increase the gross written premium of this firm. Various literatures were reviewed and analyzed
to determine those factors and to gain a better understanding of the relationship between those
factors and growth of premium. Census method was utilized in the research methodology to
choose respondents. The company’s sales staffs, senior underwriting/claim officers, branch
managers & department heads were chosen, becoming a total no of 34 respondents. A structured
survey questionnaire was prepared and administered by the researcher to the respondents, who
was required to complete them. Data was collected from those respondents and the collected
data was analyzed using descriptive & inferential statistics such as frequency, mean, standard
deviation, correlation & regression. The result of the descriptive analysis shows that each
variable believed to have an impact on the growth of premium except that of insurance
intermidieres.This is because most of the respondents didn’t have well-organized information
regarding that issue. On inferential analysis the researcher finds that product development,
marketing strategy & branch expansion of the company have a significant impact on the growth
of life insurance premium .The research tries to look the impacts of all above stated variables
and gives recommendation for the company & suggestions for future studies. The researcher
comes to the conclusion that the growth of life insurance gross written premium was significantly
impacted by product packaging (new product development), marketing and sales promotion of
life insurance products, and branch expansion, but not by level of profession and sales training
or insurance intermediaries. The researcher also conclude that growth of life insurance gross
written premium is not effective because management fails to apply check and balance in order
to improve gross written premium, promotes its service for customers’ regularly and miss much
of employee job assignment. |
