Effect of Microinsurance Growth on Insurance Penetration in Kenya
Mbugua, Douglas K
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For decades, researchers have attempted to interrogate why microinsurance can attain such high insurance penetration. The expansion of microinsurance may have an impact on other strategic decisions, such as the level of insurance penetration. The insurance sector thus has to undergo a significant transformation in order to acquire market share, penetrate new markets, and expand its current market share. The study's overarching goal was to determine the impact of Kenya's growing microinsurance market on the country's overall insurance penetration. Two theories were used in this research, risk theory, and resource-based theory, respectively. There were 32 insurance companies in the research that provided microinsurance services. Only one unit manager in each micro insurance company was surveyed to get the data. Linear regressions and correlations were used to conduct the research. Legal and regulatory framework and national culture have been found to have a significant impact on the growth of micro insurance, while many insurance companies have taken a more moderate approach to client education and distribution channels. Insurance penetration was found to be positively significant with the growth of micro-insurance. Insurance penetration was found to be positively significant with factors such as client education, legal and regulatory framework, distribution channel, and national culture. According to the findings, all insurance companies should host public education events to help clear up misconceptions about insurance policies and benefits.
University of Nairobi
RightsAttribution-NonCommercial-NoDerivs 3.0 United States
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