Strategies Adopted by Select General Insurance Companies in Kenya to Enhance Organizational Performance

Abstract

The study sought to determine the strategies adopted by select general insurance companies in Kenya in enhancing organizational performance. A cross-sectional research approach was used where the researcher targeted the top 10 general insurance companies in Kenya in terms of market share of premium contributions. The study made use of primary data collected through an interview guide. The data was later analysed using content analysis. It was established that the general insurance companies had adopted cost leadership strategies aimed at ensuring that costs are maintained low through lowering overhead costs, reduction of floor space and adoption of technology to reduce human interventions. There was differentiation in terms of school fees products, motor vehicle products, SMEs products and medical products among the firms. There was adoption of focus strategy in the firms through having products that were tailored to specific customer needs and they have also added new products to their existing product range in order to cater for diverse market groups. The study concludes that cost leadership strategy had enhanced firm performance in general insurance companies in Kenya. This was through offering the best insurance products to the clients at minimal cost. It was also concluded that differentiation strategy had enhanced firm performance in general insurance companies in Kenya through offering product and service that were one-of-a-kind, different and distinct from what the competition offered. It was concluded that focus strategy had enhanced firm performance in general insurance companies in Kenya through offering products tailored to specific customer needs. This study recommends that the general insurance companies take into consideration welfare of their employees while undertaking the cost leadership strategy. This is so that the employees’ needs are not negatively affected through lower morale and in turn their productivity and performance. It is also recommended that the general insurance companies invest in staff skills and in research and development to enable them develop more unique and appealing products to customers. The study recommends that general insurance companies provide products that are of quality and which are affordable to the other group of customers that are not in their current target market or demographic.