Effects of marketing strategies on the performance of insurance companies in Kenya
The purpose of this study was to determine the effects of different marketing strategies on the performance of insurance companies in Kenya. In order to operationalize the phenomena understudy the following variables were utilized to guide this research, i.e. sales promotion, market intelligence and product development and innovation. The data was collected from the marketing managers of all the insurance companies to gain wide representative of the sector. In all, 43 self administered questionnaires were distributed among the marketing managers. Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Organizational performance is the concept of measuring the output of a particular process or procedure, then modifying the process or procedure to increase the output, increase efficiency, or increase the effectiveness of the process or procedure. For purposes of this study the output of the insurance were market share, sales volume, development index, penetration levels, innovation and creativity, cost management, pre-tax profits and finally customer satisfaction. There are many gaps that need to be addressed for the insurance industry to deliver appropriate insurance products on a large scale to the uninsured in East Africa. There is much distrust of the insurance sector among the low income earners, mostly out of ignorance, thus there is need for a comprehensive awareness programme in order to tap the vastly un-insured market of low income households in need of insurance services. In addition, the products available are not designed to meet the needs of low income earners. According to the insurance industry report 2008 from AKI the penetration of insurance in Kenya is very low at only 2.54 percent of Gross Domestic Product (GDP) compared to 2.57 percent in 2005. Long-Term (life) insurance recorded a penetration ratio of 0.76 percent while that of general insurance was 1.78 percent. The penetration ratio reveals existing coverage and growth challenges for insurance market in a given country.