ASSESSEMENT OF LQUIDITY IN CASE OF SELECTED INSURANCE COMPANIES OF ETHIOPIA

Abstract

The purpose of this study is to assess the liquidity in Ethiopian insurance companies. In this study, fifty employees and five general managers of the companies were involved. The major instruments used in this study were questionnaire, interview and document analysis and the study is conduct descriptive technique for data analysis. The questionnaires were administered for both employees and the managers. The questionnaire contained 15 items both open and closed ended questions to consolidate the information obtained from it. A key finding related to liquidity management, the majority of respondents responded that there is a gap in liquidity management processes. Additionally, the study includes secondary data and has conduct different ratio to assess the liquidity of insurance company in Ethiopian like current ratio, quick ratio and cash ratio. Based on the results of the study, the researcher recommended possible solutions regarding the liquidity management process in selected Ethiopian insurance companie