Determinants of Buyers Attitude towards Life Insurance Policy Purchase : The Case of Ethiopian Insurance Corporation

This research studied the determinants of buyer’s attitude towards life insurance policy purchase in Ethiopian Insurance Corporation Dire Dawa branch. To achieve the objectives of this research, quantitative research method was used. Self-administered questionnaire was used and data were collected from 220 customers using questionnaire as instrument of data collection with five-point Likert scale. The respondents were selected using simple random samplings techniques. Statistical tools such as mean score, correlation and multiple regressions applied for analysis the data collected from the respondent via the software package for social science (SPSS V23). Both level of determinant factors and buyers attitude was at great extent, their mean score lay within the range of 3.42 - 4.21. In addition, the finding of this study indicated that customers were highly agreed on the determinant factors of income and level of education score (3.56) followed by health status (3.48), religion (3.47), premium and family size (3.44) and age (3.32). The correlation output revealed that all the determinant factors (income, level of education, age, premium, family size, health status and religion) had positive relationship with buyer’s attitude, where age and health status were highly correlated with buyers attitude compared to other determinant factors. In addition, the result of multiple regression indicated that, six of the determinant factors (income, level of education, age, premium, family size and health status) have positive and significant effect on buyers attitude. Furthermore, the determinant factors explained 88.9% of the variations in buyers attitude in Ethiopian Insurance Corporation Dire Dawa branch. Based on the findings of the study, the researcher recommended the company to develop policy options that benefit women so that they can be attracted towards getting life insurance policy and future researcher to examine the effect of institutional parameters on buyers attitude taking large number of respondents.