| dc.description.abstract | The need for greater Insurance penetration in both life and non life segments has been underscored by economic surveys. Insurance penetration has remained low not only in Kenya but in Africa as a whole. This study set out to establish factors causing the low Insurance uptake, the challenges faced by the insurers in marketing their products and subsequently identify strategies the Kenyan Insurance Companies can adopt to enhance Insurance uptake. A strategy is a plan of action designed to achieve specific goals. There is a growing need for organizations to move beyond solving existing problems to continuously improving in the face of changing conditions (Drucker, 1993).To achieve the objective, primary data was collected through the use of a questionnaire. Senior Executives, operational managers and customer service managers were interviewed from 25 different Insurance companies. It was established that there are many factors causing low Insurance penetration in Kenya and these include lack of knowledge and awareness by the general public about Insurance products and the benefits, negative perception ,cultural and religious beliefs like merry go rounds and harambee mentality, inappropriate products, limited distribution channels to name but a few. Amongst the challenges faced by Insurance Companies in marketing their product is legal language in documents that creates a perception that a lot is in the hidden print. In addition adverse publicity of one of the insurance companies affects all the others, and there is general lack of creativity and innovations among Insurance companies which causes unhealthy competition. Strategies to alleviate low insurance penetration include .improvement of distribution channels, consumer education or awareness, review of products offered perception of the industry and improved service standards by all in the industry. The Insurance Regulatory Authority plays a central role in fast tracking penetration by enacting appropriate legal framework especially in the area of distribution channels and capital levels of Insurance companies. The Authority can also play a critical role in creating public awareness about the products available and the benefits of Insurance. The Association of Kenya Insurers is also a key player in insurance penetration by lobbying members to uphold professionalism. The body provides a forum where members companies meet and discuss issues that are of industry concern and seek solutions, insurance penetration being one the major concerns. The study recommends collaboration by the various stakeholders in ensuring implementation of strategies that will address the various factors identified as causing low insurance penetration. Key driving factors to increase of Insurance uptake include improvement in distribution channels, customer service, review of products and consumer education and awareness | en |
