Prospects and Challenges of Strategy Implementation in the Insurance Industry: The Case of Awash Insurance S.C, Lucy Insurance S.C, Nile Insurance S.C, and Tsehay Insurance S.C

The research was designed to assess the prospects and challenges of strategy implementation in the insurance industry in the case of Awash, Nile, Lucy, and Tsehay Insurance S.c. In order to meet its purpose the researchers used primary and secondary data. Descriptive design mainly with qualitative were used. The population of the study is 1135 from which a sample size of 217 was taken. As its finding the study states that the existence of various challenges like absence of formal rewarding system, shortage of professionals especially in the operational task, the grueling attitude of employees towards the prevalence of change, limitation on technical capability of resource utilization including proper management innovative ideas and practicable opinions have been identified as major obstacles. The study reveals that managerial competence has decisive role in determining strategy implementation success in the insurance industry. As such, there is need for managers in insurance firms and like entities to possess and exhibit adequate understanding of company strategies and future outlook, as well as adequate attention and support of junior employees toward the implementing of business strategies. The managing staff of companies, with better leadership and management of staff and motivating the staff, must lead the staff in better performance of their jobs in line with strategies. The study findings further reveal the importance of many strategy implementation facilitating factors related to resource strength. Financial as well as knowledge resources from the disseminating organization are very important in the insurance industry and should thus be mainstreamed. There is a need to align corporate culture with business strategy. The corporate culture must thus be aligned with the business strategy.