Analysis of Life Insurance

The Case of Nile Insurance Company

Bachelor Thesis , 2008 , 38 Pages , Grade: A

Economics - Finance

Insurance business was introduced into Ethiopia based on mutual assistances and its modern form traces back to 1905, when bank of Abyssinia began to underwrite fire and marine insurance policy, as an agent to foreign insurance company. The general objective of the study was to analysis the insurance services in the Nile Insurance Company by giving special attention focusing on life insurance. Primary data were collected using a structured questionnaire. In addition, secondary data were extracted from relevant sources to supplement the data obtained from the survey.
The result of this study reveals that gross written premium and net written premium showed on increasing trend. But there is an ups and down of the percentage change because of unhealthy completion between non private and other private insurance companies. Secondly even if there are new classes of life insurance that was sold in Nile Insurance Company, the structure of life insurance in terms of diversification of the source of revenues is limited to small classes of the business. The amount of the premium collected and claims paid in these classes of the insurance is not proportionally distributed.
The end result of the data also shows that there is a direct correlation between premium collections and the claim payments i.e. the classes of life insurance which contributes the large amount of also incur higher claims (cost).

Inhaltsverzeichnis (Table of Contents)

• Acknowledgement
• Table of Contents
• List of Tables and Graphs
• Acronyms
• Abstract
• Chapter One
  • Introduction
    • Background
    • Scope of the study
    • Statement of the problem
    • Objectives of the study
    • Significance of the study
    • Organization of the study
• Chapter Two
  • Literature Review
    • Theory of Insurance
    • Types of Life Insurance
      • Ordinary life insurance
      • Industrial Life Insurance
      • Group Life Insurance
      • Credit Life Insurance
    • Supplementary Benefits (Riders)
      • Accidental Death Benefit (ADB)
      • Accidental Death and Dismemberment (AD&D)
      • Comprehensive Accidental Indemnities (CAI)
      • Accelerated Death Benefit
      • Health Insurance Rider
    • Underwriting
    • Sources of Underwriting Information
• Chapter Three
  • Methodology of the study
    • Data sources
    • Analysis of data
• Chapter Four
  • Data Presentation and Analysis
    • The Structure and Trend of Life Insurance
      • The Structure of Life Insurance Business in Terms of Market Share
      • The Performance of life Insurance in NIC in Term of sources of Revenue/Premium/
      • The Trend of Gross Written Premium in Life Insurance
    • The Trends of the Life Fund and Underwriting Performance
    • The Structure of Life Insurance in Terms of Cost or Claims Incurred
    • Performance Analysis of Life Insurance by Different Cost Ratio Mechanism
    • Factors that affects the growth of life insurance
      • Factors that affect the demand life insurance
      • Factors That Affect Supply of Life Insurance
    • Human Resource Development in NIC
• Chapter Five
  • Conclusion and Recommendations
    • Conclusions
    • Recommendations
• References

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to analyze the life insurance business of Nile Insurance Company (NIC) in Ethiopia. It examines the structure, performance, and trends of the life insurance market, focusing on the company's financial data and underwriting practices. The study also explores factors influencing the growth of life insurance in Ethiopia.

• Structure and Performance of Life Insurance in Ethiopia
• Financial Analysis of Nile Insurance Company
• Trends in Life Insurance Premium and Claims
• Factors Affecting the Growth of Life Insurance
• Human Resource Development in NIC

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter One introduces the study, outlining its background, scope, objectives, and significance. It also presents the research problem and the organization of the study.

Chapter Two provides a comprehensive literature review on the theory of insurance, types of life insurance, supplementary benefits, underwriting, and sources of underwriting information. It lays the theoretical foundation for the study.

Chapter Three details the methodology employed in the study, including data sources and analysis techniques. It explains how the data was collected and analyzed to address the research questions.

Chapter Four presents and analyzes the data collected from NIC. It examines the structure and trend of life insurance in Ethiopia, focusing on the company's market share, revenue, premium, life fund, underwriting performance, cost of claims, and factors affecting the growth of life insurance.

Schlüsselwörter (Keywords)

The keywords and focus themes of the text include life insurance, Nile Insurance Company, Ethiopia, financial analysis, underwriting, market share, premium, claims, growth factors, human resource development, and insurance industry.

• College: Addis Ababa University (Addis Ababa University School of Commerce)
• Grade: A
• Author: Urgessa Tilahun (Author)
• Publication Year: 2008
• Pages: 38
• Catalog Number: V279374
• ISBN (eBook): 9783656724216
• ISBN (Book): 9783656724148
• Language: English
• Tags: analysis, life, insurance, case, nile, company