Evaluating Factors Affecting Supply of Short-Term Insurance in Botswana

Guruwo Paul T.


This research investigated factors affecting the supply of short-term insurance (STI) particularly in Botswana since different researches conducted in other markets may not be applicable everywhere else. Literature was collected from books, journals and the Internet. A simple random sampling technique was used to administer questionnaires to underwriters from five STI companies operating in Gaborone, Botswana and twenty five consumers from the general public in order to deduce factors that affect the supply of insurance. Data was analysed using Statistical Packaging for Social Sciences (SPSS) version 22 and it revealed that insurance plays a huge role of contributing to the economic growth of Botswana through taxes, financial security and investment .The findings evidently showed minimal and unsatisfactory public awareness levels of insurance products. Insurance companies have also been identified as having limited consumer knowledge. The challenges faced by STI include limited resources, limited consumer knowledge and insecurities & trust issues of consumers and these adversely affect effective service delivery.Short term insurers were advised to open more channels of interacting with customers to enable address of questions, provision of information and or advice and handling customer feedbacks such as online services. Another recommendation was on STI employees’ training and development initiatives to improve service delivery. Insurance companies were urged to simplify their policy documents so that consumers can easily comprehend and interpret them. The regulator of the insurance industry (NBIFIRA) may set rules and regulations favoring the growth of short-term industry and the economy at large.


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