Insurance selection decision: factors that influence the choice of insurance services in selected insurance companies in Jimma Town

Abstract

The study was conducted at eight selected insurance companies in Jimma town. The main objective of the study is to determine insurance selection criteria employed by customers what criteria customer considered important in their insurance selection decision. The main problem identified by the researcher was that, insurance companies do not understand their customers and didn't give due attention regarding their customers' preference and selection criteria of insurance companies. And the sampling techniques employed were systematic random sampling and stratified sampling. The study was conducted using primary data. Primary data was collected using Questionnaire. The findings show that the largest impact on the insurance client decision to purchase insurance services is essentially composed of speed of disbursing indemnities, affordable premium (price of the insurance),trust on the insurance company, provision of quality service (fast and efficient services), financially sound organization and insurance company's reputation. Keywords/phrases: Insurance companies selection criteria, customers, Insurance companies, insurance Service.