Identification And Analysis Of Determinant Factors For The Growth Of Nonlife Insurance Gross Written Premium In Ethiopian Insurance Industry In The Case Of Some Selected Insurance Companies
Executive Master Of Business Administration Project Topics
Insurance is one of the major risks mitigating mechanism in modern economy. In Ethiopianrninsurance industry the non-life insurance growth of gross written premium for the past 5 yearsrnhave been grown on the average of 17.5%. This is significantly above the economic growth of therncountry. Though there is a rapid growth rate in the sector as compared to other countries,rninsurance penetration rate and density is at infant and at the very low stage. For the yearrn2016/2017 Ethiopian insurance industry non life insurance premium penetration rate is belowrn1% and insurance density is birr 52.00. The objective of this study is to identify and analyze thernfactors that affect the growth of non life insurance gross written premium. In order to achievernthe objective both primary and secondary data were used. Primary data collected by means ofrnstructured questionnaires which were distributed to employees of some selected insurancerncompanies which were operated over 20 years. They were asked to rate their opinion accordingrnto a 5-point Likert scale ranging from strongly disagree to strongly agree levels. And Secondaryrndata were collected from the selected seven insurance companies of Ethiopia and from Nationalrnbank of Ethiopia. The result indicated that there was a statistically strong correlation betweenrnthe growth of non life insurance gross written premium and GDP agriculture, GDP service andrnGDP industry. And there was strong and statistically significant positive correlation betweenrnnon life insurance gross written premium and number of branches. Furthermore, the resultrnshowed that predictor variables, variables like, claims expense, operating expense, underwritingrnoperation, Intermediaries, GDP services, GDP agriculture, No. of branches, capital, and newrnproduct and NBE regulation made a statistically significant prediction in influencing/predictingrnthe dependent variable, non life insurance GWP. The results are presented using tables andrnfigures. Therefore, the finding of this thesis recommends that Government need to sustainrneconomic growth, insurance companies need to increase capital and expand branches (outlets).