Strategic responses to competition in the insurance brokerage sector by AON Kenya insurance brokers limited
Aon Kenya is the largest brokerage firm in Kenya whose size gives them undue advantage over others to compete on the same footing. Despite the intense competition that exists in the insurance broking sector, Aon has managed to keep top position. The objective of the study was to establish the nature of competition in the insurance broking sector and the strategies adopted by Aon Kenya Insurance Brokers in dealing with the competition. This research problem was studied through the use of a case study. The population of this study was employees in different levels at Aon Kenya. The study collected both primary and secondary data. A content analysis and descriptive statistics was employed. The study found that the market share of Aon Kenya in the insurance brokerage sector was estimated to be 14%. The last two years showed significant growth for Aon Kenya, with improved revenues and margins and increased vertical market and product expansion. It also found that Aon Kenya was more reactive than proactive in dealing with competition. This was mainly due to the fact that there was no specific office charged with policy and strategy administration and implementation. The study also noted that the company employed a number of competitive strategies including but not limited to product innovation and quality service standards, to deal with competition, though it was not significant whether they were more superior to those of other companies as there was no comparison undertaken. The study concluded that the size of Aon Kenya especially with its affiliation to Aon Corporation gave them undue advantage over other brokers as they are able to offer products that are unique in the insurance market. The study recommends Aon Kenya to create a Market Research, Policy Administration and Implementation department or give this responsibility to their Marketing Department so as to shift from reactive responses to competition to more proactive responses. This will enable the company enlarge its footing in the market citing the level of increasing competition.