| dc.description.abstract | There is need to regulate and supervise any industry for it to achieve competitive edge.
However there may be challenges that may come with new regulations leading to lack of
compliance. Regulators therefore must adopt strategies that respond to compliance or
non-compliance. This study sought to investigate the strategic responses adopted by IRA
in enhancing compliance as well as determine the challenges that the regulator
encountered in adopting these strategies. A case study research design was adopted as it
sought to gain an indepth understanding of the challenges of implementing regulation and
compliance. A total of 5 respondents were interviewed using an interview guide. Both
primary and secondary sources of data were used. The research findings indicated that
IRA had introduced regulations such as minimum capital requirements, policy holder
compensation fund, new guideline on registration and renewal of licenses, guidelines on
insolvency of insurance companies and bancassurance so as to protect the consumer of
insurance. To enhance compliance, IRA adopted strategies like ICT, infrastructure,
research and development, administrative sanctions, consumer protection and education
as well as risk-based capital. The research also found out that there were challenges of
adopting these strategies which included low utilization of ICT in the industry, new and
emerging issues in the industry, poor corporate governance, insurance fraud and overlap
of supervision. The recommendations included investing in consumer education and
training; enhanced corporate governance, research and development in order to come up
with innovative products. In conclusion, the insurance industry in Kenya is still
promising and with proper legislation and regulation and compliance it can grow to
increase the GDP of the country. | en_US |
