Strategic Responses and Financial Performance of Insurance Firms in Kenya

Abstract

This study aimed to investigate how strategic responses relate to the performance of0insurance firms in0Kenya. The dependent variable in the study was firm performance, assessed over five years using metrics such as return on assets and net profits.The study utilized a descriptive0cross-sectional survey design, surveying all 51 insurance0companies in a census approach.Out of the 510questionnaires distributed to respondents,031 were returned completed, resulting in a response0rate of 61%. Data was gathered from both primary and secondary sources. Primary data0was collected through a semi-structured questionnaire featuring closed and open-ended questions designed to capture general information and specific details regarding the strategic responses and financial performance of insurance firms. The0study employed descriptive statistics as well as inferential statistics to numerically describe and analyze the variables.This was the situation observed during the analyzed time frame. The data indicate a significant positive correlation between the variables. The study results indicate that insurance firms use cost leadership methods to both recruit and retain customers. These strategies include providing low-cost products of good quality, such as savings accounts, and also using a system that guarantees the insurance's operating efficiency at all times.The study's authors concluded that insurance firms also apply the product technique by offering customers unique products and services.Based on the study results, insurance that prioritize customer service to their core clients place a high value on giving customized attention.Research shows that insurance firms in Kenya might significantly reduce their overall costs by instituting systems and processes that reduce overhead costs. By doing so,insurance firms in Kenya will be able to get a cost edge over their fellow competitors.Insurance firms are required to provide information on the goods and services that they provide to their customers. For the purpose of educating the general public about their fundamental principles,insurance firms in Kenya need to organize educational conferences and seminars.Conducting a similar study in different organizations to validate the obtained results.Replicating the study in other industries, to explore potential differences in strategic responses and performance.Undertaking comparative studies within the insurance sector across different countries to gain insights into regional variations and best practices.