Factors Influencing Quality Management Standards Implementation in Insurance Firms in Kenya

Abstract

The rise of quality management practices in the world of business is normally associated with the implementation of quality systems based on the ISO 9000 international standards. The general objective of the study was to examine the factors influencing quality management standards implementation in insurance firms in Kenya. This study adopted a descriptive research design. The target population for this study consisted of the 3 ISO certified insurance firms in Kenya. According to the Insurance Regulatory Authority database, there are forty seven licensed insurance firms. The researcher adopted purposive sampling technique and selected nine respondents from each of the three ISO certified insurance firms in Kenya. Methods of data collection that were used involved both primary and secondary data. The analysis of the data collected was according to the objective of the study. The data analysis included both qualitative and quantitative techniques. The data was also analysed using content analysis and descriptive statistics. The respondents strongly agree on factors that influence quality management standards implementation that applied in their organizations were risks associated with carrying out business operations, need for excellence in accounting and security analysis influences quality management standards implementation in their organization and assessing the risk of loss and communicating beforehand factor and offering more internet based tools that support business critical processes. Other factors highlighted by the respondents that influence the implementation of quality management standards in their organizations include: time and cost for ISO implementation, sources of ISO information, quality systems that are in place and administration efficiency. In conclusion employees themselves think the implementation of ISO changes the present situation of their organizations, increases their burden, affects their original schedules, and even decreases their wills to work while executives underestimate the resistance from employees. Organizations seeking to implement the new standard, particularly those with no previous ISO certificate, ought to engage external consultants with expertize for effective certification and consequently, decrease the time and costs of the implementation. Organizations therefore need to encompass the entire organization and requires senior management support. The Insurance firm leaders particularly the regulator need to encourage the adoption of quality management standards as this will restore confidence in the industry as well as improve business performance.