| Abstract: | The purpose of this study was to empirically assess the effect of opportunities and
challenges on motor insurance portfolio of EIC. The sample consisted of 167 employees
of the corporation. A structured questionnaire, with a five-point Likert scale, was
used. As a result, government policy, the growth of import and export in the country
and future opening of reinsurance Company are identified as the main opportunities for
motor insurance sector. Claim expense, the future opening of global insurance
companies in the country and lack of awareness of customers about motor insurance are
found to be the main challenges faced the sector. Correlation and regression techniques
were used to examine the relationships between opportunity, challenges and motor
insurance development. Results of regression analysis show that opportunity and
challenge are significant in affecting the motor insurance. Moreover, the results
revealed that on the whole, the positive effect of opportunities is emerged as the most
significant factor than the impact of challenges on motor insurance. The implication
thus is EIC need to strive on utilizing the existing opportunities than focusing on
mitigating challenges in order to attain high growth in motor insurance. |
