External environmental challenges affecting the performance of health insurance sub sector in Kenya

Abstract

The health insurance also known as medical insurance aims at protecting the insured against financial constraints arising on account of a medical emergency, either illness or an accident. This study was set to determine the external environmental challenges affecting the performance of health insurance sub sector in Kenya. The study was conducted on the sixteen insurance companies dealing with health insurance. Data was collected using questionnaires which were delivered to insurance companies targeting underwriting and claims managers. Some questionnaires were emailed to the specific managers in the different companies to the convenient of the respondents. The results were analyzed and the mean and standard deviation of the factors affecting the performance of the organizations obtained. Correlation analysis was used to determine the strength of association between the factors affecting the organizations and the performance. The findings from the study indicate that there are several environmental challenges affecting the performance of health insurance sub-sector in Kenya which include political factors, economic factors, social factors, and technological factors. The findings of this study are important because they will assist in developing policies and strategies that will ensure that health insurance is profitable in Kenya. This include as identified in the study involvement of the insurance regulatory institutions in Kenya in formulating policies and regulatory framework, responding efficiently to customers’ needs, developing affordable products, encouraging healthy eating to mitigate the lifestyle disease , creating new and attractive products, and creating more awareness on the medical insurance and the benefits.