| dc.description.abstract | The important role played by insurance companies
as financial intermediaries cannot be under-estimated
in a growing economy. As institutional investors in the
capital market, they collect and administer savings on behalf
of a large body of individual policyholders. In doing
so insurance companies cornebetween ultimate borrowers
and ultimate lenders and thereby provide efficient
allocation of available investible resources for
development.
The purpose of this thesis is to study the portfolio
holdings of insurance companies, both life and non-life,
in the Kenyan economy during the period 1950 to 1974.
') Thus we are concerned with:
1. The extent to which changes in the port-folio
hOldings of insurance companies have reflected
changing demands of the Kenyan economy.
/2. llJhatinfluences investment policies of Insurance
companies in Kenya ..
3. The role a£ insurance companies with regard
to government finance, the development of the
capital market, the public and private sectors.
4. lIJhetherinsurance companJes have a role to play
in the developmental process.
In the light of the above objectives, it was found that:
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1. Insurance fund managers are conservative investors
who adopt a prudent image and pursue cautious
portfolio policies because of their traditional
concern for solvency.
2. Despite the large growth in their accumulated
funds, insurance companies have responded only
indirectly to the Kenyan situation by investing
primarily in short-term assets and in other financial
institutions ·aridhave had no appreciable impact on
developing the already under-developed capital
market.
3. Of late however, certain developments do suggest
that the situation could be changed to make
insurance companies increase their role in
••
the economy without necessarily resorting
\
to direct control of their operations.
With regard to methodology, the study relies heavily
on fulalysis and interpretation of available published data
on insurance business between 1950 and 1974 and supplemented
by information collected through personal intervie,';swith
manager's of insurance funds of a number of insurance companies. | |
