Factors influencing the demand for life insurance services: the case of National Insurance Corporation of Tanzania

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Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
The study aimed at determining factors influencing demand for life insurance in Tanzania. In order to realize this goal, the study was further narrowed into three objectives that were intended to determine the influence of demographic characteristics, psychographic and economic characteristics on the demand for life insurance. The study was conducted in Dar es Salaam Region using NIC as the case study. Descriptive research design was used as a framework to organise the data into meaningful research input and obtain meaningful results. The study used non-probability sampling. A total of 80 NIC insured customers and 30 staffs from NIC were involved in the study. Data was collected through Interviews, questionnaires and documentary review methods. Large part of the study involved primary data collected from the field and secondary data were used to supplement the primary data. The data were then analyzed using descriptive statistics. Statistical Packages for Social Science software (SPSS version 22.00) was used to generate different Frequency tables, multiple frequency tables, cross tabulations and graphs to summarize the findings. Findings reveal that there is a significant association between the demand for life insurance and age, employment status, marital status, gender, required basic sum to be assured as well as education level. Majority of respondents were silent (Neutral) on whether Psychological factors influence demand for life insurance. The study concludes that the demand for life insurance is largely influenced by demographic factors. However, other factors can contribute to increasing demand for life insurance if sensitization campaign is intensified. The study recommend among others that, for introduction of compulsory Life Insurance Policy. NIC should be commercially focused; it should also strengthen marketing and public relations team, timely attending the customers’ complaints and use of modem technology to stimulate demand. Tanzania Insurance Regulatory Authority (TIRA) should establish effective mechanism for monitoring the life insurance sector in order to maintain maximum growth as well as setting reasonable charges that can be afforded by different social groups.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG9183.8.S94)
Keywords
National Insurance Corporation, life insurance services
Citation
Sylivery, D. (2017) Factors influencing the demand for life insurance services: the case of National Insurance Corporation of Tanzania. Master dissertation, University of Dar es Salaam. Dar es Salaam.