BUYERS’ ATTITUDE TOWARDS LIFE INSURANCE PURCHASE IN THE CASE OF AWASH INSURANCE COMPANY S.C.

Abstract

The purpose of this research is to investigate the factors affecting buyers’ attitude towards life insurance purchase in the case of Awash Insurance Company S.C. The study is based on the fact that Life Insurance consumption in Ethiopia as a whole and in Awash Insurance Company S.C in particular is very low and tried to identify the main barriers in purchasing of life insurance. Primary data have been collected through questionnaire. Data were collected from 196 participants, tabulated, interpreted and analyzed. Questions that are much related to the insurance experience of the respondents have been prepared. There were also opinion survey type questions that help the participants to exhaustively provide their perception of Life Insurance experience. Statistical tools such as factor analysis represented by graphical measure and tabular presentations, mean and standard deviation are used for analysis. The demographic as well as socio-economic structures have been studied whether they affect the attitude of buyers in the purchase of life insurance. Income and educational status are found to have significant effect in decision making towards purchasing life insurance. In the same way, sex and marital status have also effect on consumption of life insurance. Factors such as premium charges, policy term, rider benefits are found to affect intention to life insurance purchase. Recommendation based on the analysis and conclusion has been provided. It is hoped that Awash Insurance Company uses this research based recommendations to improve the overall consumption of life insurance by its target population.