A survey of the credit policies in the insurance companies in Kenya
The purpose of the study was to establish the credit control policies used by the insurance companies in Kenya Credit control is a vital component in the process of controlling cash flow. Many companies have failed in the past because management did not distinguish between profitability and cash flow. Credit control policy is the general guideline governing the process of giving credit to the firm's customers. The research design used was descriptive using census survey approaches to assist us get the objectives of the study. The population of interest consisted of all the insurance companies headquartered in Nairobi and who are members of the Association of Kenyan Insurers (AKJ) which are 41 in number as registered by AKJ in 2009. The sample size of this study was 41 and the researcher conducted a census study. Data was collected using a combination of 'drop and pick later' & 'self administered' structured questionnaires. The data collected was analysed by use of frequencies and percentages. By way of recommendation, insurance firms need to come up with technique to be used to measure and control the credit risks identified or exposed by brokers. Moreover, the structure, management, and organization of the insurer's risk management functioms), including an overview of the insurer's risk management strategy should be well laid down and known. The personnel involved in formulation of credit control policies should also be highly qualified.