ASSESSMENT OF FACTORS THAT AFFECTING THE DEVELOPMENT OF NON-LIFE INSURANCE (CASE STUDY IN NIB INSURANCE CORPORATION WOLKITE BRANCH

Abstract

Insurance is a pooling of fortuitous losses by transfer of such risks to insurances, who agree to indemnity insured’s for such losses, to provide other pecuniary benefits on their occurrence, or to render services connected with the risk. Non-life insurance business typically consists of property and liability/casualty insurances. Property insurances indemnifies property owners against the loss or damage of real or personal property caused by various perils, such as fire, lightning, windstorm, or tornado. Liability insurance also covers the insured’s legal liabilities arising out of property damages or bodily insures to others; legal defense costs are also paid. In general all insurance contracts, except life and personal accident are contract of indemnity, Means the insured’s has against damages or losses. The studies would be focused to determine an assessment factors that affecting the development of non-life insurance in Nib insurance company of wolkite branch. The general objective of this study was to assess of the factors that affect the development of the non-life insurance in nib insurance corporation wolkite branch. The study adopted a descriptive research design and quantitative and qualitative analysis approaches whereas sample of 97 respondents were randomly selected using simple random sampling and data gather from primary sources. The primary data were collected through questionnaires and interview from employee of the company. The collected data was analyzed by using table, percentage. As the result outputs helps to notify the effects to develop non-life insurance and understanding of the society. This study concluded that, the factors that affect the development of nonlife insurance were lack of awareness and attitude of the society, income and wealth level of the society; high premium rate and the country socio-economic condition were the identified factor that affect the development of nonlife insurance in the company. The study recommended that a series of measures which could be taken by the company. The insurance company should build a culture of giving seminars to its customers in order to increase the society awareness attitude about insurance the importance of non-life insurance service.