CONCEPT NOTE

Research Topic: - Factors Affecting Households Consumption of

Life Assurance:
In case of Ethiopian Insurance Corporation

Subject: To commence communication

I am working in Ethiopian Insurance Corporation especially in Life
sector for the last fifteen years and the reason why I am
interested to do research on this topic as life portfolio compares
with General insurance is insignificants.

Insurance products are categorized under unsought goods which

needs aggressive selling to make the society alert and allocate
their disposal income on purchasing life insurance. On the other
hand, the need and wants of the society has to be addressed
whenever the insurance companies develop new products. EIC is
currently selling those policies/products that were available on the
shelf during establishment of the company.

Life assurance means a contract whereby the insurer undertakes,

against payment of premium, to pay to the insured or to any
beneficiary a specified sum on certain conditions dependent up
on the life or death of the insured.

Concept Note Page 1

So I as the employee of the corporation triggered to search the
factors which hold back the potential customer to get life
Insurance coverage.

Despite the number of companies that transact life insurance

business are increasing, the consumption of life insurance
remains extremely low. Thus I as a researcher seek to find out
why life insurance consumption is very low by using some
identified factors.
The objectives of my thesis paper become to examine factors that
affect households consumption of life insurance in Ethiopia.

Method =Qualitative research conducting

Qualitative research is more subjective in nature than quantitative

research and involves examining and reflecting on the less
tangible aspects of a research subject; so to examine factors that
affect household`s consumption of life insurance become suitable.

Methodology= Surveys by filling questioner

Way of conducting quantitative research is using a survey.

Surveys usually involve filling in a questionnaire. The usefulness
of a survey is that the information I get is standardized because
each respondent the person who fills out the questionnaire is
answering the exact same questions. Once I have enough
responses to the questionnaire, I can then put the data together
and analyze it in a way that answers my research question or
what it is I want to know.

Concept Note Page 2

I want to make the study on Life insurance customers, employees
and Sales Agents those as population of my study and then I
classify then in strata and take sample from each stratum.

Different studies reflect the problem of Insurance industry in

general; they do not address specifically the low development of
households/individuals life insurance, this is the gap I in this study
will fill.

Concept Note Page 3