Factors Considered by Corporate Customers in the Purchase of Insurance Services in Kenya

Abstract

Purchase of insurance is a challenge for many companies in Kenya especially that there are many insurance providers in the market. The basis of this research was come up with factors considered by corporate institutions when purchase of insurance services. The objectives were to identify the factors considered by corporate customers in the purchase of insurance services in Kenya and to rank these factors in order of their importance. Findings from the study are expected to assist insurers’ providers review the way they package their insurance solutions and improve the outlook of the insurance industry as a whole. Primary data was collected from managers in organizations identified who are charged with the responsibility for handling insurance and descriptive statistics including, tables and frequency distribution were used to analyse the characteristics of the respondents. Inferential statistics in the form of factor analysis was used through the Statistical Package for Social Sciences (SPSS) software. Output from the software which was presented in tables reduced the large number of observed variables producing a small number of factors that were ranked, clustered and grouped into 14 labels. The labels derived were used in expound the relationship and association between the variables identified. Following the above, conclusions were drawn and recommendations made on areas requiring further research.