Effect of Technology on the Performance of Insurance Companies in Kenya

Abstract

The objective of this study was to determine the effect of technology on performance in insurance companies in Kenya. The study was anchored on the resource dependence theory and the resource-based view. The descriptive cross-sectional survey design was used in the study. The population comprised of all insurance companies in Kenya. There were 54 registered insurance companies in Kenya as at 31st Dec 2019 according to IRA. Data collection was by use of a questionnaire which was administered to the marketing manager of each company or equivalent manager who was thought to be a custodian of relevant information relating to the study. Data collected was analyzed and summarized using mean and standard deviation. Further testing was done by use of regression analysis to establish the relationship between technology and performance. The study found that application of technology leads to enhanced performance whereby document management systems is the most widely used technology process (Mean= 4.856). This is probably explained by the fact that all the other processes are premised on document management. Customer management systems, business process management systems and financial management systems were also indicated to be highly used by insurance companies. The analysis of variance indicates that the relationship between application of technology on performance is statistically significant (P Value is less than 0.05). The conclusion is that increasing application of technology leads to enhanced performance. It is recommended that longitudinal studies be carried out on the effect of technology on performance. It is also recommended that a similar study be designed within the context of manufacturing environments.