Innovative Marketing Strategies Adopted by Insurance Regulatoy Authority to Enhance Awareness and Growth of Insurance Services. A Study of Kisii County.

Abstract

The advent of the internet as a source of interactive communications has provided new opportunities for direct marketing through electronic commerce. Due to intense competition marketing has evolved as a powerful tool not only for promotion of consumer goods but also for ideas, ideologies, and other tangible offerings. Marketing today is omnipresent, pervading all works of life. Markets have become more competitive, quality of goods and services has improved considerably and the consumer has become more discerning and quality conseous, exposure to global competition has introduced issues like technology, competition, environment protection, consumer rights and innovativeness. The objective of the study was to establish the innovative marketing strategies adopted by insurance regulatory authority o enhance awareness and growth of insurance services in Kisii County. The study adopted across sectional survey of insurance users in Kisii County. The study findings indicated most respondents were aware of these innovative internet based channels of communication like use of e-mail, the whattsup, facebook, instagram and a host of social media touch points where there’s active customer interaction. The study witnessed a remarkable adoption and use of insurance services among the respondents. The most preferred channels of communication included the modern handset phones especially the smart phones due to their enormous features. This has accelerated communication within the county. The noted that the insurance penetration in Kenya studs at 2.73% which is considered low. Average world average is 6.28%. The authority has taken a host of measures aimed at improving insurance penetration in Kenya. Key measures undertaken include localization of Marine Insurance; development of micro insurance policy; training of insurance executives under the executive certificate of proficiency in insurance (ECOP) programmes encouraging use of technology in transacting insurance business; and authorization of use of new channels of distribution. The study noted the development of Islamic finance especially Takaful, which is insurance that is compliant with Sharia principles, Kenya being an Agro-economy, the insurance sector has recognized the importance of index based insurance to support farmers; The sector has also introduced a Banca insurance model of insurance distribution where banks sell insurance products through their establishments. The study identified that reputation factor is affecting the insurance business. The study identified a number of factors causing negative perception towards insurance this included, delayed settlement of claims, lack of awareness about insurance needs, and benefits of insurance and industry malpractices. The authority is conducting awareness campaign across the counties, developed guidelines on claims settlement, adoption of best practices on treating customers fairly and establishment fraud investigation unit.