ASSESSMENT OF RISK MANAGEMENT PRACTICE OF INSURANCE COMPANIES IN ETHIOPIA

Abstract

This paper sought to assess the risk management practice of insurance companies in Ethiopia. The researcher used descriptive quantitative design. A purposive random sampling technique was used to select employees from risk management and underwriting departments. The total population of the study is 85. 85 questionnaires were distributed to the respondents. The main instrument for collecting primary data was questionnaire. The data was analyzed using both descriptive statistical like mean, standard deviation and narrative methods. Narrative analysis was used to explain the qualitative results of the survey. The findings of the study were that insurances has risk management practice in terms of the setting risk-related objective and risk identification, risk assessment, risk response and risk control, communication and monitoring. The insurances were in moderate extent practice of risk management which means the respondent was in neutral agreement about practice of risk management. The study point out the insurances should give attention on providing information to their employees as well as to their customers through different mechanism in order to maintain effective risk management practice