Innovation Strategies Used by Jubilee Insurance Company Limited to Enhance Premium Growth in the East African Region

Abstract

Premium growth in insurance firms has been a common challenge as a result of poor strategic approach, lack of adoption of innovation and increased competitiveness among insurance providers in East Africa. The current study addressed these challenges by focusing on innovation strategies and premium growth in Jubilee Insurance East Africa. The study focused mainly on technology innovation strategy, product innovation strategy and market innovation strategy. The study was based on resources based theory that focuses on the need for effective utilization of strategic resources. The other theory was blue ocean theory that focuses on the need for firms to search for new markers instead of taking competitors head to head. The paper also focused on diffusion of innovation theory that addresses how customers perceive and adopt innovations over time. The study employed a case study research design. Data collection was conducted from 7 selected respondents in top management of Jubilee insurance. Structured interview guide was used where content information was recorded and analysed. Findings were that Jubilee insurance has adopted modern technology such as the use of JubiCare, artificial intelligence and chatbox towards communicating and conveying products to the customers. Jubilee insurance has also adopted product innovation strategy where the insurer has introduced new products in the market and improved customers services and added value to the existing products and services. Lastly, the study established that Jubilee insurance uses market innovation strategies such as the use digital promotion and social networks to create awareness and sell products to customers. It was also established that the use of innovative strategies has resulted in 30% growth in premium over a period of 5 years. The study concluded that there is a relationship between technology innovation and premium growth, product innovation and premium growth and market innovation and premium growth. The study recommends that technology innovations implemented by Jubilee insurance should be user-friendly, cost-effective, efficient and available to customers in all regions of operation. In relation to product innovation strategy, the study recommends that Jubilee insurance should ensure that customer needs and demands are potentially met, and that product promotion be conducted to persuade customers to consume the products and services.