Assessment of Corporate Strategies and Sustainability Agenda of Insurance Companies in Kenya

Abstract

The study was intended to review the corporate strategies and sustainability agenda of insurance companies in Kenya. This study was necessary due to the close connection between corporate strategies in enhancing sustainability agenda and therefore providing a plausible explanation of the sources of sustainability. The study established that sustainability is increasingly necessary for insurance firms due to changing perspectives worldwide. Only around 60% of the insurance companies have a sustainability strategy, compared to approximately 90% of the insurance companies whose executives think that sustainability is important The study established that the importance of sustainability is gradually being elevated across all industries. In order to be competitive, it is crucial for insurance companies to consider implementing sustainable strategies. Organizations’ sustainability is paramount and anchored on one key assumption that organizations’ longevity is fostered by developing corporate strategies that are sustainable. Insurance companies recognize the increased demand for corporate responsibility and transparency, and the executives have, therefore, turned their focus on building sustainable organizations. From the findings, it was clear that difficulties are always experienced in the adoption of new ideas even when it has obvious advantages because sustainability strategy requires a long period from conception to implementation, often it takes from conceptualization to adoption by masses. In many insurance firms, the challenge is how to accellerate acceptability of a new idea/product. It is important also that insurance companies maintain a framework that supports them in succeeding in embedding the sustainability agenda. In line with these findings, it is therefore recommended that managerial practitioners and policymakers in insurance firms involve managers at all levels in formulating sustainability strategies and give them adequate decision-making authority in implementing the respective strategies.