Strategic Responses by Jubilee Insurance Company Limited to the Industry’s Economic Environment and Changes in the Insurance Industry in Kenya

Abstract

Over the last 10 years there have been many changes in the Kenyan economy. These changes have a considerable impact on all industries and the insurance industry is no exception. This research project was a case study on Jubilee Insurance Company Limited. The objectives of the study was to identify the challenges faced by Jubilee Insurance Company in the economic environment and changes in the insurance industry in Kenya and the kind of strategic responses it has adopted. In order to meet these objectives, primary data was obtained through personal interviews with the respondents responsible for developing the strategic responses at Jubilee Insurance Company to address the economic environment and changes in the insurance industry in Kenya. The same respondents have also been overseeing the implementation of these responses. The data was analyzed qualitatively. The study established that the economic environment and changes in the insurance industry in Kenya posed major challenges to Jubilee Insurance Company. These challenges were due to the changes in the business environment in terms of high inflation rate, unemployment, and high interest rates, legislative and hostile economic policies. The study established that Jubilee Insurance Company responded to economic environment and changes in the insurance industry in Kenya through strategic choices which include: new product development, entering new markets, improved customer services, employees' motivation and adoption of state of art of Information technology systems. Finally, the study found that there were structural and legal impediments which needed to be overcome before the insurance industry could develop and achieve a high penetration. Such impediments include composite licensing; weak industry regulating framework and the taxation regime, which if well regulated will see insurance firms like Jubilee Insurance Company making good profits commensurate to strategic responses.