CHALLENGES FACING THE GROWTH OF INSURANCE SECTOR: A SURVEY OF SELECTED INSURANCE COMPANIES IN KENYA
DOI:
https://doi.org/10.47941/jbsm.6Keywords:
growth, insurance, competition, claims, fraudAbstract
Purpose: The the overall objective of this study was to establish challenges facing the growth of the insurance sector in Kenya.
Methodology: The study adopted a descriptive survey design. A descriptive survey study design was used. A population of 43 insurance firms was given. A sample of 21 firms (50 percent), were chosen from the population. This was done using the random sampling approach. The collected data was analysed by the use of statistical package for social science (SPSS) computer software for data analysis by use of tables, frequencies and percentages. Questionnaires were used and data analysed using descriptive statistics.
Results: Based on the findings it was possible to infer that not only are regulatory hitches affecting the growth of the insurance sector, the sector is also faced by other challenges ranging from lack of awareness by the public, excessive claims, fraud and competition.
Unique contribution to theory, practice and policy: The study recommended that insurance firms should increase their budgetary allocations to boost awareness and publicity. In addition, the insurance sector should stream line its operations and processes in order to enhance customer satisfaction. Furthermore, the Ministry of finance and the Insurance Regulatory Authority should institute and implement reforms in the sector. The researcher further recommends a benchmark study on the ways that other countries have revamped the insurance sector and the necessary reforms.
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