The Effects of Fintech on Growth of Insurance Companies in Kenya
Abstract
In the recent past, fintech has been redefining how organizations are offering their services. To
remain competitive in a technologically changing environment, the financial services industry and
other organizations are taking major technological transformations, and fintech is at the center of
these transformations. This study aimed at establishing the effect of fintech on the growth of
registered insurance firms in Kenya. The primary predictor variable for the study was fintech, as
measured by the investment in intangible assets by insurance firms. The response variable was the
growth measured by the gross direct premiums, the control variables included firms size, firm’s
profitability and the firm’s liquidity. The study employed descriptive statistics as the study design.
The study collected data for 52 registered insurances for four years. The study used five regression
analysis assumptions: the test of normality, the autocorrelation test, the multi-collinearity test, the
heteroscedasticity test and the Hausman test. Data presentation was mainly through the tables.
From the study’s findings, all the independent variables explained 83.1% of the change in the
growth of insurance firms in Kenya. The analysis of the variance illustrated the independent
variables used to be a good predictor of the growth of the insurance firms in Kenya. The outcome
of the coefficients indicated fintech to have a positive and significant impact on the growth of the
insurance firm in Kenya. This shows that the more the firms invest in fintech, the higher the growth
chances in terms of gross domestic premiums. Firms' size and the firms’ level of liquidity showed
a positive and significant effect on the growth of insurance firms in Kenya. The firm’s profitability
demonstrated a negative but insignificant impact on the growth of insurance in Kenya. This
indicates in short term the insurance firms use their profitability for their operations other than on
the expansions of their firms.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
The following license files are associated with this item: