Factors affecting the Performance of Tanzania life insurance Companies:

Abstract

The general purpose of the study is to examine the factors affecting the performance of Tanzania life insurance companies: with a case study of Sanlam Arusha city branch, Tanzania. The primary population of study selected for this research is limited to Sanlam Insurance Company of Tanzania. The case study research design has been selected for this study, Sample size was 98 which has been selected through Stratified sampling and Data has been collected through questioner. The examination information has been broken down using Microsoft excel and Statistical Package for Social Sciences (SPSS) program and presented using tables and figures to give a clear picture of the research findings at a glance. Based on the analysis one of the main reasons for low development of life insurance is lack of awareness among the public. Several respondents agree that the emerging of other insurance companies that offered life insurance and the growing competitiveness of these companies didn’t contribute to this near to the ground performance. However, Lack of human resource and agent/broker development and giving low focus for life insurance when compared to non-life insurance is also another causes, Poor sales techniques of life insurance. Another aspect mentioned as a factor that contributes to low development of life insurance is marketing strategies. Based on the findings the study made the following recommendations; In view of the fact that income aspects affect the buying behaviour of the society & that of most people are not aware of the concept of life insurance, Sanlam has to take several tasks in creating awareness about life insurance among the public by giving information in the different benefits of insurance and the insurance products available in the market on a regular basis, not just when selling insurance. Given that of the poor filing system observed above, in order to increase its market share Sanlam should take corrective actions like improving its filing system and make a follow-up in order to compete with other insurance companies, maintain its existing customers and attract new business. The company has to give enough attention to life insurance in line with non-life insurance. The company has to have well-articulated marketing strategy and has to use aggressive marketing strategy like advertisements on different Broad casting Medias, social medias and distributing fliers that explains the benefits of life insurance and different products the company offer especially on offices which have large number of employees with a capacity to buy life insurance to reach more potential clients. This can help the company to increase the premium earned from the sector.