Abstract:
The study assessed factors influencing growth of non-motor insurance business at Zanzibar Insurance
Company (ZIC).With the increasing demand of customers, insurance sector has become competitive.
Customers are being increasing aware of their expectations and demand high standard of services as
technology is enabling them to make comparisons quickly and accurately. However, despite of all the
challenges facing the insurance companies, the non-motor insurance business in insurance companies is
growing day to day as indicated by the Tanzania Insurance Report (2016) and Ngaruko and Mathee
(2014).This prompted the researchers to conduct this research study with a view to assess the factors
influencing growth of non-motor insurance business at Zanzibar Insurance Corporation (ZIC).The study
adopted the descriptive survey research design and the mixed research approach. The theory of insurance
demand guided the study. Data were collected through questionnaires and interviews.A total of 30
questionnaire forms were distributed and all were filled and returned. Analysis of questionnaire data was
done on SPSS version 20 by descriptive statistics such as frequencies, percentages, mean and standard
deviation for qualitative data while content analysis was done for qualitative data. Findings revealed that the
introduction of non-motor insurance products in an insurance company was influenced by the customer’s
awareness about the product. Findings also revealed that affordable pricing and competitive pricing were
influencing the growth of non-motor insurance business in an insurance company. Finally, findings reported
that promotion influenced the growth of non-motor insurance business. Recommendations were made that
awareness on the essential of non-motor insurance business among community members should be
strengthened. This will help in changing the customer’s mind-set thus growing the non-motor insurance
business. The government should continue regulating the policies and price of non-motor insurance
business to make sure community members with all levels of economy be able to afford. This is because
nowadays the price of non-insurance is expensive. The insurance companies should use the social media
platforms to promote non motor insurance since they are used by the majority. This should go hand in hand
with using other promotion strategies.
