Challenges and Prospects of Property Insurance: A Study on Selected Six Insurance Companies in Jimma Town.

Abstract

This study investigates challenges and prospects of the property insurance in Jimma Town. Employing descriptive survey research design, quantitative and qualitative research approaches of the study, by using census sampling to select 7 insurance managers from 6 insurance firms; purposive sampling method in order to draw 21 representative sample personnel staffs and applying snowball method with purposive to determine 64 customer samples from the insurance Companies, relevant data were gathered. The instruments used for data collection were employee-questionnaire, customer- questionnaire and management interview. Findings showed that the extent of effectiveness ofinsurers in Jimma Town in terms of materializing property insurance was leveled only to a ‘’satisfactory’’ value; findings suggest in that the human resource, the customers’ aspects were full of challenges as far as the organizational capacity, competition and motivational factors are concerned. Prospect wise, the next few years will be much critical for all the insurance companies, if the insurers are critically poised for higher growth. While the insurers will be endeavoring to protect their market share, the new entrants will be vigorously aiming to further improve their market standing. Each company in the industry will have to focus on harnessing its strengths and improving its competitive position. Towards the end, some contextual and relevant remedial points were recommended as to improve the challenges of property insurance business and to strengthen the companies’ scope on prospective dimensions.