The influence of ICT adoption on performance of micro insurance business in Kenya
The main objective of the study was to determine the types of ICT adopted by firms offering micro insurance products in Kenya and to determine the effect of the ICT adopted on business performance of firms offering micro insurance in Kenya. The study was based on the diffusion of innovations theory that sought to explain how, why, and at what rate new ideas and technology spread through cultures. The study adopted descriptive research design. The population of the study comprised all insurance companies providing micro insurance products in Kenya. Currently there are thirty five (35) companies dealing with micro insurance business in Kenya (Appendix 1) acquired from the Insurance Regulatory Authority (IRA, 2010). Quantitative and Qualitative data was collected; Semi-structured questionnaires were used to collect primary data at the premises of the participant insurance firms. Owing to the qualitative and quantitative nature of the information sought, both descriptive and inferential analyses were used in data analysis. Descriptive analysis was performed in order to describe the data by showing measures of central tendencies (means) and measures of dispersion (standard deviation). The study findings established that ICT adoption is very crucial for the performance of firms offering micro insurance in Kenya; the variables client appraisal, staff performance product development and firms‟ processes was significantly influenced by the adoption of ICT in firms offers micro insurance; ICT adoption in the firms has a significant effect on the client‟s appraisal. It was further revetaled that ICT adoption has enhanced more client details to be captured beyond the basic „know your customer KYC‟ details. ICT adoption in firms offering micro insurance has a direct influence on the performance of staff and that the Processing of claims by staff is more efficient while using ICT systems than when manual system was being used. The study recommends that improved ICT in the firms offering micro insurance in Kenya. Kenyan insurance companies have found it easy and cost effective to establish within the EAC member states. With improved access to mobile phones, improved connectivity, satellite communication and e-mail, insurance companies are able to engage professionals like accountants and lawyers to offer services.