The effectiveness of agency force in financial institutions: the case of national Insurance Corporation of (t) limited (NIC)

This study investigated the effectiveness of agency force in financial institutions with specific reference to the National Insurance Corporation of Tanzania Limited (NIC) over the years the NIC has been using substantial amount of money and other resources on its agency force. Until now no research has been done to ascertain the effectiveness of the agency force. To achieve the objectives and questions raised in the research the study gathered a variety of data in the above mentioned aspects of agency force effectiveness. Data was collected through interview, observations, and questionnaires, NIC documents review, and newspapers. Likewise literature review and empirical research work were visited in order to establish concepts and theories pertaining to the study effectiveness. Data was collected through interview, observations, questionnaires, NIC documents review, and newspapers. Likewise literature review and empirical research work were visited in order to establish concepts and theories pertaining to the study. The findings show that the agency force contribution to NIC overall performance is not effective especially under the liberalized market. Following the Insurance Act of 1996, now there are 16 private insurance companies conducting insurance business in Tanzania. Factors that contributed to that situation are related to; NIC weakness, agency force and the existing regulatory mechanism. Thus the corporation is recommended to change its current organization structure, office layout, and system of recruiting and controlling agents, computerize business operations and adequately support its agents and more to finalize the privatization process.