Digitalization and Operational Performance of Insurance Firms in Kenya
Abstract
Digitalization has transformed firms and helped them attain higher levels of competitive advantage due to enhanced service delivery and reduction of waste and operation related costs. This study was aimed at determining the extent of implementation of digitalization and the effect that digitalization has on operational performance of insurance firms in Kenya. This study was anchored on the technology acceptance theory and the resource-based theory. A cross-sectional descriptive research design involving all the 61 insurance firms that were operating in Kenya was used. Operations Managers in the different insurance firms in Kenya were the respondents of the study. In the first objective, descriptive statistics were used to establish the extent of digitalization in the insurance firms. Multiple regression analysis was used for the second objective to determine the relationship between digitalization and operational performance of insurance firms in Kenya. The research findings indicated that insurance firms in Kenya have implemented digitalization in their operations to a moderate extent. Moreover, there was a positive correlation between implementation of digitalization and operational performance of insurance firms in Kenya. From the results, 84.2% of operational performance for the insurance firms in Kenya is attributable to digitalization of policy administration and procurement functions. However, four aspects namely claims, underwriting, peer to peer and customer on boarding were found not to be significant in the relationship. This may be attributed to lack of appropriate systems to facilitate full automation of the business processes. Since the study was restricted to insurance companies, there is need for a similar study in other industries.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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