Insurance Employees Perception on the Challenges Affecting Performance of Insurance Companies in Kenya
Abstract
The objective of this study was to determine the challenges affecting the performance of insurance companies in Kenya. The study used a descriptive survey approach in collecting data from the respondents. A questionnaire was used as primary data collection instruments. Descriptive statistics such as means, standard deviation and frequency distribution was used to analyse the data. Qualitative data was analysed using content analysis. The study concluded that fraud, inadequate skilled human resource, cybersecurity risk and inflation are the major challenges affecting performance of insurance companies in Kenya with fraud largely affect composite and general insurance as compared to life insurance. This study also concluded that lack of innovation, inadequate access to information technology and ineffective marketing strategy moderately affect the performance of insurance companies in Kenya. Amendment of banking act regulating interest rate charged by commercial bank has largely affected the performance of life insurance companies as compared to composite and general insurance companies. The study recommends that IRA should formulate policies that aim at making colleges offering insurance training accessible to all parts of the country to deal with shortage of trained human resource in this field. In addition, IRA should also collaborate with ministry of education especially the department of curriculum development to ensure that insurance studies is incorporate in high school syllabus. The management of insurance companies should develop strategies that are directed towards penetrating other regions in Africa. Besides this, the companies should also be involved in a vigorous product differentiation as a strategy to make them more competitive in the eyes of competitors. IRA and insurance companies should carry out public campaign against fraud to promote public understanding on the demerits of fraud and how it can be avoided. Besides antifraud training by the insurance companies, there should be network that ensures a due diligence is carried out before one is hired to some sensitive areas of the companies such as audit, claims and risk management department. Human resource management should also develop some strategies that enhance staff retention such as continuous evaluation of performance and compensation program.
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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