Determinants of insolvency in selected insurance companies in Kenya
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Date
2014Author
Waweru, Millicent N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The purpose of the study was to assess determinants of insolvency of Insurance companies in
Kenya. This study was guided by the following objectives: Establishing how the type of contract
contributes to the insolvency of insurance companies in Kenya, establishing how under reserving
contributes to insolvency of insurance companies, establishing how management contributes to
insolvency of insurance companies, to establishing how regulations contribute to insolvency of
insurance companies in Kenya. The study investigated all the 51 insurance firms registered in
Kenya to establish the possible factors that contribute to insolvency. A cross sectional survey
design was employed and a mixed research method applied to collect both qualitative and
quantitative for the study. The study used questionnaires, interview guides and previous
insurance regulator reports to collect information. The completed questionnaires were edited for
completeness and consistency, checked for errors and omissions. Quantitative data was analyzed
using frequency distribution, mean, percentage. The study findings are to be of value to the IRA
in establishing policies and regulations to cope with the problem of insolvency. The total
population size was 255 with the sampling size being 152 selected from the various insurance
companies comprising of chief executive officers, human resource managers, underwriting
managers, claims managers and finance managers. Data was collected using self-administered
questionnaire, interview guide and observation method. The collected data was analyzed using
Statistical Package for Social Scientist Software (SPSS). The results of the study were analyzed
using descriptive and inferential statistics and the results were presented using tables. The
findings of the study revealed that factors that contribute to insolvency of insurance companies
are type of contract, under reserving, management and regulations. The study recommends that
the insurance companies should invoke section 125 of the Republic of Kenya that requires a
progressive realization of the enforcement of the one-third-gender rule to ensure that women are
represented at the insurance companies as not only a requirement of the law but also balance
decision making.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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