Abstract:
This study was about challenges and prospects of the property insurance, taking the case of
Welikite town as the focus of the study. The study employed descriptive survey research design,
because the main purpose of the researcher was to describe and examine what the sample
respondents think and feel about the existing challenges and prospects against the effective
execution of property insurance in the target area. The study emphasized on challenges and
prospects of property insurance from the aspects of both the insurers and the insured. Since the
insurer organizations were very limited in the study area, the researcher had planned to draw
samples from two groups, insurance companies’ employees and the insurance service customers.
Ethiopian Insurance corporation and National Insurance corporation staffs and their customers
were the focus of this study. By using Non random sampling method, the researcher gathered the
available data about challenges and prospects of property insurance from all the managements
of the insurers and their employees. Since the population of the insurer companies was limited,
purposeful sampling was found convenient to include all the personnel in the data climate. On
the other hand, the clients that were currently receiving insurance service packages from the two
insurers are totally 390. Therefore, this researcher preferred to employ purposive sampling
method together with snowball method. Primary data was generally obtained from executives,
personnel staffs and clients of the insurance companies through questionnaires and interviews.
Most critical challenges were evident towards materializing property insurance especially in:
carefully choosing smart and presentable personnel who will be faithfully interacting with the
clients; in utilizing heavy informative advertisement to show how the service can be better
implemented; in terms of maintaining good technology-job fit; towards manipulating better
employee-job fit; in developing perceptions of superior quality service congruent with customers'
expectations; and implementing data analytics for competitive advantages. Eventually, some
feasible recommendations, such as: employees’ empowerment, Focus on core competency areas
of property insurance marketing, introduction of new products with skillful agents, delivering
reliable insurance service with cost effective strategy, awareness of effectiveness and excellence
in the insurance industry, and the need for updating with technology were suggested towards the
end.