A multi-level analysis of performance of the Ethiopian insurance industry

Abstract

The literature confirms that economic growth enhances the performance of an industry. However, that was not the case for the Ethiopian insurance industry. Thus, the research question is why does the Ethiopian insurance industry persistently underperform despite the high economic growth? The literature identifies the complex nature of industry performance and the factors that influence it. This creates a research gap that necessitates an analysis of the impact of the factors and the complex nature of the interaction among them on the underperformance of the Ethiopian insurance industry. The research employed a convergent mixed-methods approach, utilizing both quantitative and qualitative research designs. The study used secondary quantitative and primary quantitative and qualitative data to conduct the analysis. Further the research triangulates the results to explore a comprehensive understanding how the multiple factors interplay and impact performance of the industry. The results indicate disconnect between economic growth and industry performance, stemming from the industry's limited presence and limited affordability for the larger part of the economy to stimulate demand. The results also illuminate on how multitude of factors including economic growth, market structure, innovation, and value chain governance, interplay and contribute to the underperformance of the industry. The study offers valuable insights to policymakers, professionals, and researchers, enabling them to understand the complex nature and interactions of the factors and take actions to leverage opportunities for improving industry performance.