Determinants of the adoption of bancassurance business models by Commercial Banks in Kenya
Anditi, Gregory O
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The objective of this study was to establish the determinants of the adoption of bancassurance business models by commercial banks in Kenya. The research used a descriptive survey research design. The descriptive survey was ideal because it ensured thorough description of the situation ensuring least possible bias in data collection. The study made use of primary and secondary data collected from annual reports submitted to the CBK for the target population comprised of all the commercial banks in Kenya. Summaries of data findings together with their possible interpretations were presented using tables, charts, correlations, standard deviations and regression. The study found out that mean of bancaassurance set up is relatively high as compared to other variables. The bancassurance also had the highest standard deviation. The bancassurance sales commission had the highest correlation with the return on assets. From the regression equation the study concluded that a unit increase in bancassurance set up, sales commission and administration costs would lead to improvement on financial performance of the commercial banks in Kenya. Therefore; the study recommends that; bancassurance practices should always be taken in to account to improve the banks return as measured by return on assets and hence the performance of the banks. Policy makers should also undertake to understand risks affecting the operations of the commercial banks to maximize performance.
University of Nairobi