Strategies adopted by insurance companies in Kenya to enhance corporate image

Abstract

This study sought to establish the strategies adopted by insurance companies in Kenya to enhance corporate image. The study will aid management in developing strategies to enhance corporate image which is a major determinant of the acceptance of insurance by the insuring public in Kenya. The population of interest was all the licensed insurance companies in Kenya. The main instrument in data collection was a close-ended structured questionnaire targeting the principal officer in each insurance company. Data collected was analyzed based on primary statistics using SPSS Package. The study found out that insurance companies use strategies such as managing the stakeholders’ needs and expectations, market development programs, engaging highly skilled staff, simplification of the wordings of insurance contracts and efficient processing and payment of claims to enhance corporate image. The findings of this study have important implications to the management of insurance companies as well as the regulator and academicians. The study recommends that insurance companies should endeavor to identify the needs and expectations of their key stakeholders in order to strategically manage them thus building public confidence. In addition the umbrella bodies steering the industry, and especially the Insurance Regulatory Authority (IRA) and the Association of Kenyan Insurers (AKI) should formulate market development programs to enhance corporate image of the constituting organizations. Training and development should also be embraced by all insurance companies through hiring highly trained/skilled staff, intensively training existing staff as well as training directors and senior management on good corporate governance principles. The college of insurance should tailor-make relevant training programs at affordable costs. The government should also consider including insurance in the school curriculum so that many people get to know about insurance and its benefits from an early stage. The study further recommends that the language of insurance contracts should be simplified and that insurance companies should employ effective mechanism to settle claims promptly as delays and disputes negatively impact on the corporate image.