Competitive Strategies and Effectiveness of Life Insurance Companies in Kenya

Abstract

Insurance uptake within Kenya is quite lethargic hence it presents the industry with valuable prospect as a significant population does not have insurance cover. Utilization of insurance products is vastly led by Non-life insurance covers such as medical, vehicle and recently introduced marine. The goal of the study is to determine the effectiveness of competitive strategies on life insurance companies in Kenya. The study was anchored on three theories which includes Michael Porters competitive forces model, the resource based view and the competence based strategy theory. Descriptive cross sectional research design was used in this study. This target population was 49 insurance companies in Kenya. Primary data was employed in this study. Structured questionnaires were used to collect primary data using the Likert Scale. The primary data collected by the questionnaire was coded and entered into SPSS. Descriptive statistics in form of frequencies and percentages was used to analyze the descriptive elements of the study. Correlations and regression analysis was calculated to draw inferences to the entire population. Regression of coefficients results affirmed that focus strategy, differentiation strategy and cost leadership strategy positively influences effectiveness of life insurance companies. Based on the findings of the study, the conclusion drawn is that the aforementioned strategies significantly impact on effectiveness of life insurance companies positively.