“Factors Influencing Growth of Non Motor Insurance business.

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.