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In order to sustain competition, firms are innovatively posing different strategies in
order to acquire a larger market share. In line with that, firms deploy a variety of
distribution channels and intermediaries as vital opportunities to coordinate with
customers in a more convenient way. The main objective of this study was to
determine the role of agents, brokers and banks as insurance intermediaries for
insurance industry penetration in Tanzania. The study deployed a survey strategy
where by the questionnaires were administered to sales managers and underwriters of
insurance firms in order to obtain the relevant data. The study employed a sample of
95 respondents. This study was conducted in Dar es Salaam region where most
insurance firms and intermediaries are located.
The data were analyzed using SPSS, where descriptive statistics and multiple
regression analysis were conducted in order to determine the relationship between
the predictor variable and dependent variable. The findings showed that, a significant
relationship exists between agents, brokers and bank assurance, and insurance
industry penetration. It was also revealed that, other factors such as service quality,
customer relationship management, urgency in sorting out claims and innovation of
services play a great role in influencing customers. The study considers the
relationship that exists between usage of insurance intermediaries and penetration in
the insurance industry. As such, it recommends for the insurance firms to recognize
the distinguished role of intermediaries in the extended market reach of firms by
providing incentives, high commissions and other benefits to motivate them in
increasing efficiency in enabling the firms to increase their market penetration.
Furthermore, given the fact that insurance penetration in Tanzania remains low, firms
are competing for a low market base. As such, in order to improve their market,
firms should focus on awareness programs to inform the uninsured population about
benefits of covering risks of their assets and business operations which in turn will
increase the market base. |
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