Image of Insurance Industry in Society in Ethiopia

Abstract

: This paper attempts to assess the image of insurance industry in society through a sample of 109 customers of insurance companies operating in Debre Birhan and Addis Ababa Metropolis. The study was a cross-sectional survey that used self-administered structured questionnaire to the target population, both customers and staff of insurance companies in Ethiopia. The responses obtained from the data collection were cross tabulated and subjected to descriptive analysis. The study revealed that insurance companies find it difficult to settle claim payment and subject customers to long processing period, high premium and unsatisfactory performance. Besides, unethical practices increased the rate of dissatisfaction. In addition, lack of insurance culture, awareness and attitude of our people contributed to their poor image subsequently leading to low patronage by the public. These insurance companies however collect their premium promptly. In an effort to repositioning the industry for effective and efficient performance, the paper proposes from the public relative perspective a number of strategies such as prompt and accurate claims payment, automation of operation, good customer relationship management, and the good code of ethics as strategies for repositioning the insurance industry in Ethiopia.

Keywords

• insurance
• image
• claim
• culture