“FACTORS THAT AFFECT THE DEVELOPMENT OF

PROPERTY INSURANCE IN JIMMA TOWN GINJO

GUDURU KEBELE”

A RESEARCH PAPER SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR BACHELOR
OF ART (BA) DEGREE IN BANKING AND FINANCE

SUBMITTED BY:- ELIAS MESFIN

ADVISOR:- MUHAMMED. K (MSC)

JIMMA UNVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF BANKING AND FINANCE

JUNE, 2023 GC

JIMMA, ETHIOPIA.
 Abstract

The study will focus on this kebele in particular the factor that affect the development of property
insurance in Ginjo Guduru kebele. The objective of the study will the factor that affect the
development of property insurance and to identify measure to reduce the factors of development

of property insurance. The study will be both primary and secondary source of data. Mainly
based on primary data.. The primary data will be collected through interview and open and close
ended questionnaires. The secondary source will be obtained from referring Ginjo Guduru
property insurance written material and documents.

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 Acknowledgement

First of all I would like to thank Allah for endowing me endurance and courage
of going through to reach at this point. Then I would like to give my deepest
gratitude to my Advisor Mr MUHAMMEDNUR.K for his constructive comment,
technical and professional guidance in writing this research proposal paper.

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Table of Contents
Abstract...................................................................................................................................................i

Acknowledgement.................................................................................................................................ii

CHAPTER ONE......................................................................................................3

1. Introduction.................................................................................................................................3

1.1. Background of the study.....................................................................................................3

1.2. Statement of the problem....................................................................................................5

1.3 Objectives of the study.............................................................................................................6

1.2.1. General Objective...........................................................................................................6

1.3.2. Specific Objective.......................................................................................................................7

1.4. Significant of the Study.....................................................................................................................7

1.5 Scope of the study.............................................................................................................................8

1.6. Limitations of the study....................................................................................................................8

CHAPTER TWO..................................................................................................10

2. Literature review...............................................................................................................................10

General Insurance Service................................................................................................................11

Motor....................................................................................................................................................11

2.3. Insurance company operations......................................................................................................16

CHAPTER THREE.................................................................................................20

3. Methodology....................................................................................................................................20

3.1. Source of data.............................................................................................................................20

3.2. Method of data collection...........................................................................................................20

3.3. Method of sampling.....................................................................................................................20

3.4. Method of data analysis.............................................................................................................21

CHAPTER FOUR..................................................................................................22
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4. Data analysis and discussion.............................................................................22

Table 4.1. Study the method those people protect their properties from risk loss...............................23

Table 4.2. Study the way of getting insurance services contract of the insured from insurance
companies.............................................................................................................................................24

Table 4.3. Study the know how of people about property insurance....................................................24

Table 4.4. Studying the insured evaluation of their insurers in the premium settlement, reduction of
uncertainty finical stabilization and reduction......................................................................................25

CHAPTER FIVE....................................................................................................28

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS........................................................28

5.1. Summary of the finding...............................................................................................................28

5.2. Conclusions..................................................................................................................................29

5.3. Recommendations......................................................................................................................30

Questionnaire........................................................................................................................................31

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CHAPTER ONE

1. Introduction

1.1. Background of the study

Insurance is the poling of fortuitous losses by transfer of such risk to insurers,
who agree to indemnify insured for such losses to provide other pecuniary
benefits on their accordance or to render services connected with the risk.
Insurance is always socially productive, since neither the insurer is paced in
apposition where the rain of the insured comes at the expense of the insured.
( Tekilegiorgis Assefa (2004), risk management and insurance)

Property insurance is a type of insurance coverage that provides financial

protection against damages or losses to an individual's property, like buildings,
personal belongings, or structures. This insurance has played a vital role in
safeguarding the assets and investments of property owners, enabling them to
mitigate risks and uncertainties associated with natural disasters, theft, fire, or
other perils.

Several factors have been identified as key contributors to the growth and
development of property insurance. These factors range from external elements
such as macroeconomic conditions, technological advancements, and
environmental changes to internal factors like insurance companies' strategies
and regulatory frameworks. Some of the major aspects to be considered in this
research are:

1. Macroeconomic Factors: Economic conditions play a crucial role in shaping

the property insurance market. Factors like GDP growth, inflation, and
employment rates directly influence disposable income levels and the demand

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for property insurance. Understanding the effect of these factors can provide
insights into future insurance market developments.

2. Regulatory Frameworks: Insurance regulations dictate the terms and

conditions of policy offerings and ensure adequate consumer protection. The
study will explore the impact of regulatory frameworks on the accessibility and
affordability of property insurance products.

3. Environmental and Climatic Factors: The increasing occurrence of natural

disasters and climate change-related events have led to high demand for
property insurance. These occurrences also contribute to the rising cost of
insuring properties due to higher claims payouts. Analyzing the
interrelationship between these environmental factors and the property
insurance market is essential to understanding the long-term viability of the
industry.

4. Technological Advancements: Innovations in technology, such as improved

methods of risk assessment and smart home systems, have allowed insurance
companies to offer better-tailored products and services to customers. The
research will examine the role of technology in the growth and development of
the property insurance market.

5. Consumer Behavior and Preferences: Understanding the preferences and

needs of consumers is essential for insurance companies to design products
and services that cater to their needs. Factors such as demographic changes,
increasing urbanization, and evolving expectations could impact the
development of property insurance.

6. Competition and Market Structures: The level of competition among

insurance providers can affect the availability and affordability of property
insurance products. Examining the state of competition and the impact of

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mergers and acquisitions on the property insurance market will provide
insights into how market structures influence the industry.

(multi-al by cryptoal)

The services of property insurance are started in Jimma town during the
history of different bank services entered in the society. After entering the bank
service those provides observed the people to wards the demand of insurance
services then they immediately diversified services in multidirectional such as
bank and insurance. After that different private insurance companies are
started their business by providing different type of coverage’s in the society for
example nice insurance company in 1994 in the town know the some
insurance companies are existed in insurance market in Jimma society. Ginjo
Guduru Keble.

In conclusion, this research will explore the factors affecting the development
of property insurance comprehensively by analyzing their interdependencies
and implications on the insurance market. This study aims to provide valuable
insights and recommendations for policymakers, insurance providers, and
potential investors to make informed decisions in the rapidly evolving property
insurance landscape.

1.2. Statement of the problem

Insurance services are much more important in day to day activity of the
owners and individual person to perform their activity without a fear of risk
loss. But many people consider an insurance contract to be a waste of money
unless the loss occurred and indemnity is received. It is true that most
property owners do not purchase insurance policy, so this and other problem
that affect the development of property insurance in the Ethiopia in general in
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particular Jimma town. The people of the society are also do not know the
importance of the insurance that covered different types of properties.
Therefore, this study helps to answer the following questions related to those
factor affected the development of property insurance in Jimma town. Ginjo
Guduru kebele.

1. What are the attitude of property owners towards the property insurance
in Jimma town Ginjo Guduru kebele?

2. What are the factor that affect the payment of fair premium for property
insurance in Jimma town Ginjo Guduru kebele?

3. What are the role of insurance companies for the development of

property insurance in Jimma town Ginjo Guduru kebele?

4. What are the measure to reduce the problem of development of property

insurance in Jimma town Ginjo Guduru kebele?

1.3 Objectives of the study

Now a days purchasing of insurance policy is very important in the world
to be productive. Because it reduces uncertainty which permits the firm
to Lengthen its planning horizon worry and fear are reduced for
managers and employees, which should improve their performance and
productivity.

1.2.1. General Objective

The main objective of this study is to identify factors that affects the
development of property insurance in Jimma society and also to give
suggested solution for those problem.

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 1.3.2. Specific Objective

 To identify the attitudes of property owners on the coverage of such

risks in the town as well as in the kebele.

 To evaluate factor that affect the payment of fair premium for

property insurance

 To identify measures to reduce the problem of development of

property insurance

 To give some suggestions to improve this types of insurance

1.4. Significant of the Study

The study is helps to know about the importance of property insurance in

order to know, why and how it reduces the uncertainty of properly increase
the productivity. Also it helps to know the problems affecting the
development of property insurance in Jimma society. Ginjo Guduru Keble.

Understanding the factors that influence the growth and sustainability of

property insurance can help insurance companies and policymakers make
informed decisions about their business strategies and policies.

Property insurance is an essential component of risk management for

property owners, and a better understanding of the factors that affect its
development can help property owners make more informed decisions about
their insurance needs.

The study can also help identify potential barriers to the development of
property insurance in certain regions or markets, which can inform efforts
to expand access to insurance coverage.

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 By identifying the factors that contribute to the growth of property
insurance, the study can help promote greater financial stability and
resilience in communities by ensuring that property owners have access to
the resources they need to recover from disasters and other unexpected
events.

Overall, the study on the factors affecting the development of property

insurance is significant because it can help promote greater understanding,
access, and utilization of this critical form of risk management.

The study is also important for someone to know the essential of property
insurance and to protect the problems that affect the companies also to
improve the performance of premium determination in different cases of
attracting customers in the consumption of property insurance in the Keble.
Thus the study believed to sign is; cant in collecting and documenting
valuable data for future researchers, more over the study is willing to
forward some essential recommendations in the area of property insurance
in the society.

1.5 Scope of the study

If this research study is going to be conducted at all societies of the
country. It was more interesting and effective in order to come up with
the real understanding for the use of property insurance. But due to time
and cost constraint the researcher is forced to undertake this study only
in Jimma town Ginjo Guduru kebele .

1.6. Limitations of the study

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Researcher often does not finish his/her research without limitation. Thus
while conducting the study will be certain problem.

 Respondent may hesitate to give accurate data if they assume that it

affect them indirectly.

 Time and cost constraint may be faced

 The data collection process may not be carried out as per the
schedule.

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CHAPTER TWO

2. Literature review

Insurance is a tool by which totalities of a small number are compensated

out of funds (premium payment) collected from plenteous. Insurance
companies pay back for financial losses arising out occurrence of insured
events.

Insurance companies collect premium to provide security for the purpose,

as loss is paid out of the premium collected from the insuring public and
the insurance companies act as trusts to the amount so collected.
Insurance companies have standard proposal forms. Which are to be filed
up giving the details of insurance required and presented to insurance
company? Different insurers provide different types of services in their loss
presentation activities.

The property insurance is a one type of the service in which people

purchase in order to protect their property from any damage.

Loss presentation in properly insurance.

Insurance companies are activity involved in numerous loss prevention

programs and also employ a wide variety of loss prevention personals
including safety engineers and specialists in fire presentation occupational
safety and health and products liability. Some important loss preventions

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 activities that property and liability insures strongly support include the
following property loss presentations.

General Insurance Service

1. Fire and Lighting
Provides cover for damage caused to property by Fire and lighting. The caller
can extended by endorsement to caller damage caused by storm, Flood burs
pipes, earth quake, air draft, not, civil commotion, malicious damage,
subsidence and or collages etc.

 Daily completed claim notification form

 Outstanding premium should be settled

 Police report and fire brigade report.

 Stock declaration and ownership evidence

 Books of accounts, sales and purchase involves

 Clearance from mortgager.

Motor
 Third party only: - provides covers in respect of liability incurred
through death or injury to a third party of damage to third party
property.

 Third party Fire and theft: - provides the above cover and in
addition including cover for damage to the vehicle from fire or theft.

 Comprehensive: - provides cover as above and in addition including

cover for accident loss of, or damage to the vehicle itself. The cover
can be extended by endorsement and extension to cover passenger
accident benefit. Passenger’s legal liability, territorial limit, malicious
damage etc.

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Documents and conditions to be full filled for prompt claim
settlements including.

 Daly completed claim notification form

 Outstanding premium should be settled

 Excess must be paid

 Copy of driving license of the driver

 Police report.

Marine

Provided all risk cover for a cargo being transited against loss, Fire, theft,
collision and a wide range of other perils. The cover can be extended by
endorsement to cover damage caused by was strike riot etc.

Types of coverage’s related to property insurance

The types of property coverage’s are considered as the coverage of in

different classes, those classified as under the home owners policies and
home owners policy sections. The home owners instance, if Frequently
referred to as package policy or called a multiple line policy. Separate
coverage’s in to one policy prior to the introduction of home owners
insurance in the 1950’s property and insurance an a private dwelling and
personal property theft coverage and personal liability insurance could not
be obtained on one policy. And also those home owners forms are classifieds
in to two sections of coverage. They said to be section I and section II those
section covered insured own property like dwelling other structure, personal
property. But section II provides liability and medical payment coverage’s.

Personal property

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Personal property owned and used by insured is covered anywhere in the
world. This provision also includes borrowed property. In addition after a loss
and the named insured request, the insurance can be (Rijida).

Extended to cover the personal property of a request or resident employee while

the property is in any resident occupied by an insured. The amount of
insurance on personal property is equal 50 percent of insurance in the
dwelling. That amount can be increased. Example

e.g. Desta home is insured $200,000 an additional $100,000 of insurance

applies to personal property the full amount of insurance on personal property
applies both on and of the premises anywhere in the world. (Rijda 111-116)

Personal property not covered

 Article separately described and specifically insured

 Pets (Animal, birds, and Fish

 Motor vehicles add motorized and conveyances

 Air craft and parts

 Property nested or held for rental to others off the residence premises.

 Property recovers, boarders and other tenants

 Business recodes

Perils insured against personal property

Personal property is covered on a named perils business the policy pays for
a direct physical loss to the property form the following perils.

 Fire or lighting

 Windstorm or hail

 Explosion

 Riot civil commotion

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  Air craft

 Vehicles

 Smoke

Loss settlement under personal property

After different approvals and assessments the value of damage properties

are settled by insurance company those companies have their own settling
methods. Covered losses to personal proper are paid on the basis of actual
cash value at the time of loss but not to exceed the amount necessary to
repair or replace the property and different set of fur is applies if the
amount of insurance is less than 80 percent of the replacement cost at the
time of loss stated simply if the insurance earned is less than 80 percent of
the replacement cost at the time of loss stated simply. If the insurance
earned is less than 80 percent of the replacement cost, the insured receives
the larger of the following two amount.

 Actual cash value of that part of the building damaged or

 Amount of insurance carried x loss

80% X replacement cost

Property owners

Property owners have a legal obligation to protect other from harm,

however the standard of care owned to other depends up on the situation.

There groups, traditionally have been recognized

 Trespasser

 Licensee

 Invitee

However, as will be discussed latter, a number of jurisdictions have abolished

or modified these common low classification.
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 Commercial property insurance

Protecting the company assets in the event of a loss is a key function of the
risk managers job. Commercial property insurance is the primary technique
for financing the risks associate with damage or destruction of these assets
(Rebecca A. me Quade, director of risk management PACCAie).

Under the commercial package policy (Cpp) has replaced the order special
multimedia policy (SMP) that was used earlier to business firms. This
commercial package policy used to insured different properties like motels
hotels apartment house, office buildings, retail stores, institutions such as
Church as and schools, processing firms such as dry cleaners, manufacturing
firms and similarly commercial firms.

Covered property

 Building

 Business personal property of the insured

 Personal property of other

Property not covered under commercial property insurance

 Accounts, bill currency deeds and evidences of debt, money or securities.

 Animals

 Automobiles held for sale

 Bridges, road ways or other powd surface

 Contra band or property in the course of illegal transportation or trade

 Land, water, growing crops or Lawns (etc)

Personal property of other

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Is in the care, custody or custody or control of insured is also covered example
if a fourfold destroys a machine shop and equipment, belonging to customer is
damage the loss would be covered.

Under additional coverage’s

 Debris removal

 Prevention of property

 Fire department service charge

 Pollutant clean up and removal

2.3. Insurance company operations

The most important insurance company operations consist of the following

 Rate making

 Under writing

 Production

 Claim settlement

 Re insurance

 Investments

Rate making

Rate making refers to the pricing of insurance. Insurance pricing differs

considerably from the pricing of other products. When other products are
sold the company generally knows on advance what its costs of production
are, so that aprice can be established to cover all costs and yield profit.
However, the insurance company does not know in advance what it’s
actual costs are going to be.

The premium charged for the insurance may be inadequate for paying all
claims and expenses during the policy period. It is only after the period of

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protection has expired that in insurer can determine its actual losses and
expenses and yield a profit.

The person who determine the rates is known as an actuary. An actuary is

a highly skilled mathematician who is involved in all phases of insurance
company operations, including pricing and research. In life insurance, the
actually studies important statically data on birth, deaths. Marriages.
Based on this information, the actuary determines the rates for life and
health insurance policies. The objectives are to calculate premiums that
will make the business profitable, enable the company to compete
effectively with other insurers, and allow the company to pay claims and
expenses as they occur. A life insurance actually must also determine the
legal reserves a company needs for future obligations.

Under writing

Refers to the process of selection and classifying applicant for insurance.

The under writer is the person who decides to accept or reject an
application. The fundamental objective of under writer constantly strives to
select certain types of applicants and to reject others so as to obtain a
portfolio of insurable risks.

Statement of underwriting policy

Under writing starts with a clear statement of under writing policy. An

insurer must establish an under writing policy that is consistent with
company objectives.

The objective may be a large volume of business with law unit profit.
Classes of business that are acceptable border line or prohibited must be
clearly started. The amounts of insurance that can be written on acceptable
and border line business that are acceptable, borderline, or prohibited

17
must be clearly stated. The amounts of insurance that can be written on
acceptable and border line business must also be determined.

The insures underwriting policy is determined by top level management in

charge of under writing.

The line under writers: - persons who make daily decisions concerning the
acceptance or rejection of business are expected to follow official company
policy. The underwriting policy is stated in detail in an underwriting guide
that specifies the lines of insurance to be written, territories to be used,
acceptable, border line and prohibited business, amount of insurance to be
written, business that reveres approval by a senior under writer, and other
under writing details.

Production

The term productions refers to the sales and marketing activities of insures.
Agents who sell insurance are Frequently referred to as produces. This
word is used b/c an insurance company can be legally chartered, personnel
can be hired, and policy forms printed but nothing is produced until a
policy is sold. The key to the insurers financial success is an effective sales
force.

Claim settlement

Every insurance company has a claims division or department for setting

claims ,This section examines the basic objectives in setlines claim, the
different types of claim advisors, and the various steps in the claim
settlement process. Basic objectives in claim settlement form the insures
view point, there are several basic objectives in settling claims.

 Verification of a covered loss

 Fair and prompt payment of claims

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  Personal assistance to the insured.

Loss worry and fear

A second benefit of insurance is that worry and fear are reduced. This is
turn both before and after a loss. For example if family heads have
adequate amounts of life insurance, they are less likely to worry about the
financial security of their dependents in the event of premature death
personal insured for long term disability do not have to worry about the
loss of earnings if a serious illness or accident occurs and property owners
who are insured enjoy greater peace of wind because they know they are
covered if a loss occurs. Worry and fear are also reduced after a loss
owners. Because the insured know that they have insurance that will pay
for the loss.

Source of investments funds

The insurance industry is an important source of funds for capital

investment and accumulation premiums are collected in advance of the
loss and funds not needed to pay immediate losses and expenses can be
loaned to business firms. These funds typically are invested in shopping
centers, hospitals, factories, housing developments, and new machinery
and equipment. The investments increase societies stock of capital goods
and promote economic growth and full employment. Insures also invest in
social investments such as housing, nursing homes and economic
development projects. In addition because the total supply of loan able
funds in increased by the advance payment of insurance premiums, the
cost.

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CHAPTER THREE
3. Methodology
3.1. Source of data
For this research study, primary data was collected primary data of firsthand
information was collected from the property owners.

3.2. Method of data collection

In order to obtain tangible out come for the study relevant data should be
collected. As a result both quantitative and qualitative data was used primary
data was collected through questioner and interviews. The questionnaire
includes both close ended and open ended. Open ended questionnaire was
used so as to get recusants information from the respondents. Qualitative data
was also be included in the research by carefully observing. The technique,
view points and opinioned of the respondents secondary data was collected
from documents. Consisted in insurance companies.

3.3. Method of sampling

To make census study on all exiting property owners of the kebele, it is
too difficult with it’s very large number of people due to time and cost
constraints. Researcher uses judgmental sampling method by considering the
following.

 The source of data’s for this study’s are primary & secondary

 Small number of respondents enables to save time and cost

 Small number of interview carry satisfy the demand of primary data.

Therefore the researcher was Judged from the total population the target group
is a 10% of respondent in the total population.

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3.4. Method of data analysis
The collected raw data was processed by edition coding and classifying
based on each class or group for the purpose of better analysis. After the data
process the next step was been data analysis. Due to the qualitative nature of
the data to be collected descriptive analysis method is used to analyze the data.

Due to data analysis both tabulation and percentage teqneques is uses,

once the data is analyzed using tables & percentage the interpretations was
made carefully in order to avoid the prevalence of misinterpretation and
misunderstanding

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CHAPTER FOUR

4. Data analysis and discussion

This chapter tries to analyze the researcher is primary data available from the
target group through questionnaire distribution to the people of Jimma Town
in Ginjo Gudru kebele and the secondary data available from different written
materials.

The analysis and interpretation of this paper also presented based on

descriptive analysis method.

In this case the researcher takes as from the total population 5660 peoples of
the target area, he judged for taking of rest ten percent (10%) of respondents.

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Table 4.1. Study the method those people protect their properties from risk
loss.
From did you protect Method of protection No of Percentage
your property from users
risk loss

Purchasing insurance 200 35.7%

Accumulation lump sum 120 21.4%

in packet

Engaging edir and equb 160 28.6%

Installing protection 80 14.3%

device

Total number (%) 560 100%

The above table shows that from the total (5660) respondent, 200 (35.7%) of
respondents protect their properties risk loss by purchasing the policies, 120
(21.4%) of the respondents also protect by accumulation of lump sum in paeres
and 160(28.6%) of respondent protected by engaging edir and equb and also
80(14.3%) of respondent protected by using installing protection device.

There fore the researcher conclude that the customer by purchasing insurance
contract by the. Insurance company.

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Table 4.2. Study the way of getting insurance services contract of the
insured from insurance companies.
How did you made a contract Way of getting No of percentage
with insurance companies insurance services respondent

Bank request 140 70%

Family /Friend 45 22.5%

action

Sales person of - -
insurance campany

Self requirement 15 7.5%

Total respondent (%) 200 100%

The above table show that the total respondents which have insurance polices
in what way they made insurance contract with their insurers, so from the
total insured, 140 (70%) of the respondents made the contract by bank
requests, 45(22.5%) of the respondent made by family (friend action) and
15(7.5%) of the respondent made by self requirement. But there is no
respondents made by sales person.

From this the researcher conclude that most customer made the contract by a
bank request. Therefore, the banks are other markets of insurance polices.

Table 4.3. Study the know how of people about property insurance.
Can you say I have Respondents
know about property
Total No % Yes % No %

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 insurance 560 10% 100 179% 460 82.1%

The table indicates that from 560 respondents, 100 (17.9%) of the respondents
have enough knowledge about the insurance concepts and 460 (82.1%) of the
respondents have to enough knowledge about property insurance.

From this the researcher came up the result more people do not have the
knowledge of insurance service, concepts.

The researcher requirement from the insurer is to give a continuous education

about other coverage’s and to settled comfortable premium in order to attract
more customer as well as develop the provident of prosperity insurance service
in the kebele as well as in the town.

Table 4.4. Studying the insured evaluation of their insurers in the

premium settlement, reduction of uncertainty finical stabilization and
reduction.
Item Respondents

No of respondents In percentage

What is your property insurers

premium settlement

Attractive 40 20%

Moderate 135 67.5%

No attractive 25 12.5%

Total respondent (%) 200 100%

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 How do you evaluate the services
of property insurance in worry
and uncertainty reduction in No of Respondent In percentage
financial stabilization?

Completely satisfied - -

Fairly satisfied 115 57.5%

Vary satisfied 65 32.5%

Un satisfied 20 10%

Total number (%) 200 100%

The above table shows the two study questionnaires concept those are
settlement of premium and evaluation of respondents in service of insurance.

Based on this from the total sample size of insured’s 40(202) of the respondent
said that the property insures premium settlement is attractive, and
135(67.5%) of the respondent said that it is moderate and also 25(12.5%) of the
respondent are said it is not attractive.

From this discussion the researcher comes up with the result more respondent
are categorized to moderate.

And the above table also shows that 115(57.5%), 65(32.5%), and 20(10%) of the
respondents said that the services of property insurance in reducing of worry
and uncertainty is fairly satisfied, very satisfied, and unsatisfied respectively.
Therefore the researcher came to after discussion and this analysis more
respondents are fairly satisfied by the insurers by the service of the companies.

The last study of the researcher is to knowing the general understanding and
attitudes of peoples in Ginjo Gudru kebele area about the service of insurance,
this is because of taking care in the factors affecting the development of
property insurance service. Therefore the researcher analyzed by using
unstructured questioner in this case most people in the area are given the

26
same answer from starting the definition up to the usage of service. Most said
that insurance service gives us the advantage by indemnifying their properties
and reducing owners in this discussion and analysis the researcher come up
the result, in the area the insurance companies does not work in the attitudes
of peoples with regarded to insurance service.

After the analyzing of the primary data the researcher again collected different
written materials with related to the service of propriety insurance service in
the kebele.

And the kebele has the total population is 5660 peoples. Those peoples live in
by participating in different economic activates and they have different life
standard based on there income. Therefore in related to this condition the
customers of insurance services is up and down different insurance companies
around the kebeles.

From the total population of the kebele the user of the services is not more
than 200 peoples when the researcher sees that is around (35.7%). From the
total population. Therefore, the researcher con concludes that the result even
though the benefit of the services is very essential for those people but it is the
number of customer is very small.

27
 CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1. Summary of the finding

 The research was conducted on problems that affect the Development of
property insurance in Jimma town Ginjo Guduru kebele.
 The research are primary data in order & obtain primary data the
researcher used questionnaires that contain both open ended and close
ended questions.
 Property insurance is an insurance in which people are purchase it in
order to protect their property from any damaged.
 The services of property insurance are started in Jimma town during the
history of different bank services enter in the society.
 The people of the society are also do not know the important of the
insurance that covered different types of properties.
 Most of the people living the kebeles are not the user of the insurance
service because they do not know the important of the services, by this
cause most of respondents use other protective devices.
 On the time of getting insurance service the most customers are saying
that by bank request therefore banks are other markets of insurance
service.
 The settlement of premium in those insurance companies around the
kebele are moderate this moderate settlement is attractive for customers
and all are satisfied by their insureds.

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  The general understanding of the insurance service in the kebele is in
infant stage. This is because of the participation of insurers the
promoting of the service around the town as well as the kebele.

5.2. Conclusions
 The researcher conclude that the customer purchase insurance contract
from the insurance company.

 The most customer made the contract by a bank request therefore, the
banks are other markets of insurance polices.

 The research came up the result more people do not have the knowledge
of insurance service concepts.

 From the discussion the researcher comes up with the result more
respondent are categorized to made rate.

 After discussion this analysis more respondents are fairly satisfied by the
insurers by the service of the companies.

 The researcher asses the problem of in the development of property

insurance in the kebele the case of loss reduction activity. Besides this it
is also contains information about public action to wards the constraints
of this property insurance service.

 Property insurance coverage has significant advantage is loss

presentation as well as reduction of anxiety of individual property owners
by expectation of indemnifying the risk loss and the loss returning of
property back the owners former financial position.

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  In contrary as a result obtained the client record collected data this data
shows that the society self imitativeness towards insurance coverage for
protecting their property is at a maximum. Most coverage are the result
of bank request which is requested by the bank present different forms
which is the covering of their properties.

 The kebeles has no enough understanding about the property insurance

service. Even those who have insurance coverage for their property they
understand simple activates of insurance around their community. Most
respondents replied that on the time of data collection about the
importance of property insurance.

 Most citizens are assume that it is important for some sorts of accident,
otherwise they expected insurance as waste spent of money for ignoring
worm and uncertainty reduction of insurance service.

5.3. Recommendations
 The researcher requirement from the insurer is to give a continuous
education about other coverages and to settled comfortable premium in
order to attract more customer as well as develop the provident of prosperity
insurance service in the kebele as well as in the town.

 As already discussed in this paper the different problem used around the
property insurance is not simply expressed in a simple terms, the main
thing which makes the problem too difficult is that the two side existence of
the problem that means from the society and the companies it self.

 In order to cover this multiple problem company should announce its

service to the society through different directions. Besides this it also
establish property insurance in different areas which does not set the
insurance service. The other requirement from the insurers is to give a
continuous education about other cover and to settled comfortable premium

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 in order to attract more customers as well as develop the provident of
property insurance service in the kebele as well as in the town.

 In the present day the insurance service is the most profitable sector and
large capital holders in developed countries. Today there is no country or a
single business run without insurance service sector. The before it is
necessary to the developing countries in order to slow up it economy. In
order to this slows of economic it is expected that from individual in their
area.

 The researcher came to the kebeles it is a major problems are existed

without solution. Among that lock of knowledge in this section.

 The leader one as already it was discussed through learning and practice
this activates to chance the people attitudes with relating religion or factors
of development of property insurance service in the society lastly a major
problem of development of this insurance service is seen in the kebele are
both insurance companies and society. The researcher conclude this
condition is not without reasons. Because different evidences are presented
on the time of data collection. There are first the society has no adequate
knowledge this problem is assisted the motivation of going on the owners to
the insurance service in the peoples side. On the other hand insurers are
the factors of development in development of property insurance is lack of
participation in the up grading of know how. This and other situations are
the main hindrances of the service.

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References

1. Tekilegiorgis Assefa (2004), risk management and insurance

2. Rejlda, principles of risk management and insurance 6th ed 1997.

3. george E. Regoa (1998), principle of risk management

4. magazines and different written materials related to prnperty insurance.

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 Questionnaire
JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF BANKING AND FINANCE

The questionnaire is prepared for studying self initations of Jimma town property
owners regarding insurance cover according to present research paper.

There fore your genuine answers to prepared question is mandatory thank you in
advance for your cooperation instruction.

 You need not write your name

 Make your chosen by making “X” sign in the box

1. How did you protect your property from risk loss

By purchasing insurance cover 

By engaging equb and edir 

By accumulating a lump sum in packet 

By installing protection devices 

2. Do you have property insurance coverage Yes  No 

3. If you say yes for question (2) how do you made a contract with insurance
companies?

Bank request  Family/Friend action 

Sales person of insurance companies  Self requirement 

4. Can you say I have know how about property insurance

Yes  No
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5. If you say no state some major constraints for this lack of know how
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6. if you say yes state some majore importance of property insurance

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7. If you gets cover through once from the above request which does it contract
ends

With in a week 

In month 

In a year 

8. Some individual think that insurance as a west for money unless loss occurs is
indemnity is received at the coverage time what is your idea/

Agreed  Disagree  Indifferent 

9. What is your property insurance premium settlement

Attractive  Moderate  Not Attractive 

10.How do you evaluate the service of property insurance in worry and uncertainty
reduction in financial stabilization role?

Completely satisfied  Very satisfied 

Fairly satisfied  Un satisfied 

11. What do you suggest to broaden the service provide by property Insurance
company in risk minimization and Financial stabilization as well as public
participation to words this sectors.

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 መጠይቅ

ጅማ ዩኒቨርሲተ

ቢዝነስና ኢኮኖሚክስ ኮሌጅ

የባንኪንግና ፋይናንስ ትምህርት ክፍል

ይህ መጠይቅ በጅማ ከተማ ከሚገኙት ቀበሌዎች ለናሙና በተመረጡት ብቻ የሚሞላ ሲሆን አላማው በማህበረሰቡ
ውስጥ ስለንብረት የኢንሹራንስ ሽፋን የነዋሪዎቹን አጠቃላይ እውቀትና በምን ያህል ደረጃ ላይ እንዳለ እንዲሁም
በዋነኝነት ለኢንሹራንሱ ፣ስፈርት እንከን የሆኑትን ችግሮችን ለይቶ ለማወቅና መፍትሔዎችን ለመፈለግ የሚያገለግል
የመረጃ መሰብሰቢያ ቅጽ ነው፡፡

ማሳሰቢያ፡- ይህ መጠይቅ የምርመራ ስራ መረጃ መሰብሰቢያ እንጂ ከዚህም ሌላ ምንም አላማ እንደሌለው በመገንዘብ
ማንኛውም ቅፁን የሚሞላ ባለ ንብረት በነፃና ግልጽ በሆነ መንገድ መግለጽ መቻል አለበት፡፡

 በመጠይቁ ላይ ሰምዎትን መጻፍ የለብዎትም

 በመጠይቁ ክፍት ቦታዎች ላይ ለሚመልሱት መልሶች የX ምልክት ያስቀምጡ

1. በንብረቶች ላይ ለሚደርሱት የተለያየ የአደጋ ኪሳራዎች እንዴት ይከላከላሉ

የኢንሹራንስ አገልግሎት ተጠቃሚ በመሆን 

በዕቁብና ዕድሮች በመሳተፍ 

ገንዘቦችን በግልዎት በማጠራቀም 

የተለያዩ የመከላከያ ግብአቶችን በመጠቀም 

2. የኢንሹራንስ ሽፋን አልዎት

አለኝ  የለኝም 

3. በቁጥር ሁለት /2/ ላይ ለተመለከተው ጥያቄ መልስዎት አዎን ከሆነ ሽፋኑን በምን መንገድ አገኙት

በባንክ ጥያቄ  በጓደኛና በቤተሰብ ግፊት 

33
4. ስለንብረት ኢንሹራንስ ሽፋን በቂ እውቀት አለኝ ብለው ያምናሉ

አዎ  የለኝም 

5. በቁጥር አራት /4/ የተመለከተው ጥያቄ ላይ ከሆነ እውቀቱ እንዳይኖርዎት እንከን የሆነቦትን ምክንያት ይግለፁ
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6. የተራ ቁጥር አራት መላሽዎት አዎን ከሆነ ግን ጥቂት የኢንሹራንስ ጥቅሞችን ይግለፁ

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7. የኢንሹራንስ ተጠቃሚ ከሆኑ አንዱን የኢንሹራንስ ግልጋሎት ለማግኘት የፈጀብዎት ጊዜ ምን ያህል ነው

በሳምንት ውስጥ  በግማሽ አመት 

በወር ውስጥ  በአመት 

8. በአንድ አንድ ዜጎች አመለካከት የኢንሹራንስ ግልጋሎት ገንዘብን እንደ ማባከንና ግልጋሎቱን በአደጋው ሰአት
ማግኘት አናሳ ነው በማለት ያምናሉ እርስዎስ

አምናለው  አላምንም እጠራጠራለሁ

9. በእርስዎ የኢንሹራንስ ግልጋሎት የቅድመ ክፍያ አደላደል መጠኑ ሁኔታ እንዴት ነው

ማራኪ  መካከለኛ  የማይማርክ 

10. የንብረት ኢንሹራንስ ንብረቶችን ከድንገተኛ አደጋዎች ከመከላከል ረገድና ኢኮኖሚያችን ከማረጋጋት አንፃር
እንዲሁም አዕምሮዎት ከአደጋ ፍራቻ ነፃ ከመሆኑ ሁኔታ ጋር ተደምሮ ያልዎት ስሜት እንዴት ነው

በጣም ረክቻለሁ  በበቂ ሁኔታ አልረካሁም 

ጥሩ ነው  በቂ አይደለም 

11. በአጠቃላይ በአካበቢዬ ስላለው የኢንሹራንስ ግልጋሎትና እንዲሁም አደጋዎችን በመልሶ ማደስ ረገድ ስላለው
ሚና እና የአገልግሎቱ አቅርቦት በምን ያህ ደረጃ ላይ እንደሚገኝ ከእርስዎ የአመለካከት ሁኔታ ጋር በማዋሃድ
አጠር ባለ መልኩ ይግለፁ 

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ግዜዎትን ሰውተው ለሰጡኝ ትብብር ከልብ አመሰግናለሁ!!

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