| dc.description.abstract | Kenya Reinsurance Corporation, just like any other organization, whether public or private sector is affected by turbulent environment because every organization has to interact with the environment for survival. It becomes crucial for the organization to prepare themselves by formulating strategies that will enable them to exploit opportunities presented by the environment in order to eliminate and/or minimize the threat that affect their performance.
This management research has two major objectives, to establish the challenges of globalization of reinsurance industry to Kenya Re and also determine the responses of the organization to the challenge. The study was conducted by carrying out in-depth interview with senior managers (respondents) of the company. The primary data collection method was applied. Personal interview guide was designed for the purposes of the interview. Content analysis method was used for analysis.
The findings of the study were that Kenya Re has been affected severely affected by the challenges of globalization and economic reforms in Kenya, which commenced in the 1990s has led to the liberalization of the reinsurance industry. Globalization of reinsurance industry in this context has been analyzed in the areas of political as well as increased competition from other well established operators after the loss of mandatory cessions as the major globalization challenge facing Kenya Re.
Other challenges identified were liberalization of the market, rapid technological changes, language barriers, risk profiles (some businesses require technical background in order to underwrite, for instance, hydro-electric companies) of other firms and currency fluctuations. Rating of companies was also identified as a critical challenge, as companies are rated in order to compete and maintain their market positions. In conclusion, the company has adopted both strategic and operational responses in order to compete effectively and also ensure their survival in the turbulent environment in the insurance industry. | en |
