Effect of Human Capital on Productivity of Non-Life Insurance Line: Evidence from Ethiopian Insurance Corporation

Abstract

The purpose of this study was to examine the impact of human capital on productivity of Non-life insurance business in Ethiopia with special reference to Ethiopian Insurance Corporation. The study adopted mixed type of research approach with arrangement of primary data collection via a cross-sectional survey questionnaire and secondary data from financial statement of Ethiopian non-life insurance business. The sample of this study was 95 employees of determined by Yamane’s formula and selected using simple random sampling technique. The questionnaires were distributed to 82 employees of EIC and only 60 were completed and returned. The study used regression analysis technique and used STATA software package. The study finding revealed that human capital is positively and significantly affecting productivity in Ethiopian Insurance corporation. Therefore, the study recommends that an Ethiopian Insurance corporation should understand and develop better mechanism in this regard to increase productivity in the company.

Keywords: Insurance, Human capital, Non-life insurance, Productivity

DOI: 10.7176/EJBM/13-9-04

Publication date:May 31^st 2021