| dc.description.abstract | The study sought to establish the brand personality of each of the various insurance companies in
Kenya as well as establish the relationship between brand personality and market penetration
among these insurance companies. To achieve these objectives, a survey research design was
used and primary data was collected between 16th September 2013 and 10th October 2013. A
semi-structured questionnaire were administered mainly by ‘drop and pick later’ method. The
respondents were mainly marketing managers, at times other senior officers in marketing,
corporate communications and underwriting. Out of the 46 six firms targeted for the study three
could not be reached due to varying reasons. One did not have contacts or physical address given
while another was in the vicinity of the terror attack, an area barred for almost two weeks. The
third firm changed their office location and nobody in their former premises could direct where
they moved to. Out of the 43 firms contacted 32 responded, representing 74% response rate,
which adequately represents the population and enables the research to conclude on the
objectives.
The insurance industry has a long history of existence in Kenya but with a penetration of only
3.16% of Gross Domestic Product (GDP) by 2012. This low penetration after over eighty years
of existence may be attributed to factors like fragmentation of insurance companies, general
poverty, fraud, high inflation, weak government policy and regulations, and poor image of the
industry. Industry fragmentation (several insurers but none is large enough, except in a local
context) limits the growth due to inadequate income and resources to finance research,
innovation and publicity by the numerous small and medium-sized players. In view of the low
levels of product innovation, differentiation remains low over the years leading to increased but
shallow competition and price wars, a phenomenon greatly impacting on industry growth and
profitability. One front of differentiation is through unique brand personality, to increase brand
engagement, create strong bonds with customers and resonance. This would undoubtedly provide
an insurer with a competitive edge/advantage that others cannot duplicate. Brand personality as a
means to consequential differentiation triggers favourable brand response and customer loyalty,
thus enabling further market growth and penetration. For faster market growth the industry
players should team up and handle the challenges jointly, technically with the guidance of the
regulator and the trade association(s). | en |
