Assessment of Community Attitude Towards Insurance Service Purchase in the Case of Mizan Aman Town

Insurance plays a crucial role in providing financial protection against risks for individuals and businesses. However, consumer attitudes toward insurance in Ethiopia are shaped by factors such as cultural beliefs, financial literacy, prior experiences, and affordability. This study, conducted at Mizan Tepi University in southwestern Ethiopia, aimed to assess the attitudes of the Mizan Aman community toward purchasing insurance. Using a descriptive research design, primary data were collected through questionnaires from 398 selected policyholders aged 18-65 years, representing high and middle social classes, out of a total population of 91,437 active individual life policyholders. Secondary data from relevant literature provided contextual background on Ethiopia’s insurance sector. Data analysis using SPSS included descriptive statistics, factor analysis, Pearson correlation, and regression to examine the influence of variables such as income, age, family status, education, and cultural factors on insurance uptake. The findings reveal significant gaps in awareness, trust, and understanding of insurance among respondents. Many participants showed limited knowledge of insurance benefits, legal requirements, and policy details, which hindered their willingness to purchase insurance. Additionally, distrust in insurance companies and doubts about insurance’s role in economic stability and health crisis management further constrained engagement. Overall, the study highlights challenges related to limited awareness, mixed perceptions, and economic barriers affecting insurance adoption in Mizan Aman. The results suggest the need for strategic interventions focusing on community education, trust-building, and improving accessibility to insurance products. While providing useful insights, the study’s limitation to a single location and researcher calls for broader research across multiple sites to support comprehensive recommendations.