dc.description.abstract | The Reinsurance industry in Kenya has in recent years experienced significant
turbulence as a result of environmental change. Organizations depend on the
environment for their survival and therefore it is necessary for them to scan the
environment in an effort to identify changing trends and conditions that could
eventually affect the industry and adapt to them (Thompson and Strickland, 2003).
This study was a case study conducted to identify the challenges faced by the Kenya
Reinsurance Corporation as a result of globalization, and the response strategies it has
employed against these challenges. The study used secondary data collected from
existing company records and reports of the Insurance industry. It also used primary
data that was collected by administering an interview guide to senior management of
Kenya Re. The study identified the challenges of globalization as intense competition,
cultural diversity, technological challenges, legal and regulatory challenges, currency
fluctuations, insecurity, inefficiency and bureacracy. Kenya Re has responded to these
challenges through aggressive marketing, market expansion, strategic alliances,
product research and development, restructuring, outsourcing of non-core functions,
competitive recruitment and remuneration, objective performance management and
upgrading its information technology system. The study recommends that Kenya Re
develops a distinctive competitve advantage to enable it gain a competitive position
against its competitors, and that it employs effective cost control methods. The study
also recommends that Kenya Re continuously reviews its governance performance,
sets performance targets and adopts performance management systems to ensure it
does not develop complacency as a result of guaranteed business in Kenya through
the legal mandatory cessions. | en_US |