Determinants of performance of Insurance Companies in Kenya
Abstract
In the past decade, the number of players in the insurance sector have increased significantly with currently 54 insurance companies offering services nationwide. This has changed the dynamics of operations in this sector as the companies are faced with harder task in attaining competitive advantage. However, the available literature is not sufficient to determine what exactly affects how the insurance companies in the country perform. This study sought to establish the determinants of performance of Insurance Companies in Kenya. The study adopted descriptive research design with the population being all the insurance companies that are registered in Kenya. Census approach was adopted to cover all the insurance companies in Kenya while data was collected by using questionnaires. Data was analyzed using descriptive statistics and presented by tables. The study found out that cash flows, liquidity, organization structure and size all have a positive and significant effect on how the firms performed. The study further found out that these factors had a positive and significant effect on the performance of the insurance companies. The study thus concludes that in order to improve performance in the insurance companies, these factors ought to be carefully evaluated and prioritized in the organization’s strategies. The study thus recommends that the management at these firms ensure that their assets are liquid enough to meet both current and future obligations. The study also recommends that the organization structures should be implemented in such a way that it enables enhanced communication between the employees and management. Additionally, the study recommends that the government should come up with measures to grow the country’s real GDP as this would enhance the economic growth of the country and the insurance industry’s growth as well.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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