The role of savings and credit co-operative societies in enhancing insurance market penetration in kenya. A case of cic insurance group limited
The major determinant of an organizations success today in the changing turbulent environment depends on successful adoption of competitive strategies. This study sought to investigate the role of savings and credit co-operative societies in enhancing insurance market penetration at CIC Insurance Group Ltd. The study adopted a case study research design as it sought to gain an in-depth understanding of specific factors affecting the adoption of SACCOs in enhancing insurance market penetration at CIC Insurance Group Ltd. A total of seven respondents were interviewed using an interview guide. The researcher used both primary and secondary sources of data. The survey findings indicated that the leading contributions SACCOs have played at CIC Insurance Group Ltd. are an increase in their market penetration, diversification of income sources, establishment of a rapid market presence among others. This adoption of SACCOs has played a major role in the company‟s market penetration as insurance industry statistics have shown a consistence growth in the company‟s premium income and market share which are the major measurements of market penetration. The challenges experienced in implementing this concept were as a result of the regulatory framework, Kenyan culture and negative perception about insurance, competition from insurance brokers and agents among others. The main conclusion is that the implementation of this concept has enhanced insurance market penetration at CIC through increased premium growth and market share at CIC Insurance Group and regulatory framework is the leading challenge in the implementation of the „saccoassurance‟ concept. The researcher recommends that the insurance company and SACCOs should form long term partnership agreements, own joint subsidiaries, maintain good relations as well as provide high quality service to the customers and also enhance the sustainability of the partnerships. For further studies, future researchers can focus on other financial institutions in the financial services sector so as to find out how other institutions like the banking industry can benefit from the existence of SACCOs through initiatives like agency banking.