Factors Affecting Consumers‘ Attitude towards Purchase of Life Insurance Policy in Case of Ethiopian Insurance Industry in Addis Ababa

Abstract

Life insurance is an important aspect of the social-economic development of the country. Despite its importance the consumption of life insurance in Ethiopia is very low compared to other countries. The objective of this study was to examine factors affecting consumers’ attitude towards purchase of life insurance policy in Case of ten Ethiopian insurance industries in Addis Ababa. Based on the literatures reviewed religion Cultural beliefs, education and income level, social security and insurance awareness were identified. The study was employed both descriptive and explanatory research design. The population of the study comprises of individual customers and operational employees ten insurance industries those provide life insurance service .moreover, the study employed Non probability sampling method specifically convenience Sampling techniques. Descriptive statistics was used to summarize the respondents’ demographic characteristics. T test and one way ANOVA test were applied to test the mean difference of the respondents on the demographic variables and linear regression analysis used to analyze the relationship between predictors and dependent variable with consumers’ attitude towards purchase of life insurance. Then the primary data collected from the questionnaire was analyzed using SPSS software version 20 with descriptive statistics and more importantly, a multiple regression model were adopted on to show the relationship between the variables and their contribution to Consumers attitudes towards purchasing of Life policy. Finally the researcher made conclusion except Social security all the independent variables were positive and significantly effect on the dependent variable.