A survey of the marketing mix used by life insurance companies in Kenya in responding to the challenges of the HIV/AIDS pandemic

Abstract

The economy of Kenya has continued to perform poorly in past years, which has resulted in an unprecedented growth in the poverty levels. (UNDP Report Kenya, 2001). This disappointing development has further been complicated by the HIV/AIDS pandemic (Economic Recovery Strategy report 2003). It is on this premise that this study was formulated to try and identify how Life insurance companies in Kenya have used the marketing mix in responding to the challenges of the HIV/AIDS pandemic. The objectives of the study was to establish the extent to which Life insurance companies use the marketing mix variables to respond to the HIV/AIDS challenges and to determine the factors that influence the choice of the variables. This was a descriptive survey aimed at determining the extent of use of the marketing mix by Life Insurance companies. Twenty one companies constituted the population. A census study was conducted. Data was collected using semi-structured questionnaires. Data was analyzed using frequencies, percentages, mean scores and standard deviation. The findings of this study revealed that marketing mix elements used are product, price, promotion, place, process, physical evidence and people but the degree differs across the various Life insurance companies in Kenya. In light of the observations made it is recommended that insurance companies embrace the marketing mix concept in a bid to respond to the HIV/AIDS challenges, that insurance companies come up with insurance polices that cater for the needs of the people suffering from HIV/AIDS and that the government together with the insurance industry intensify their campaign against this pandemic. Respondent apprehension was very higli and it was difficult to get the responsible senior officials to accept to be interviewed. They viewed the exercise with a lot of suspicion due to the stiff competition in the insurance industry. There is need to conduct similar studies on the Life insurance companies to determine the financial repercussions of the HIV/AIDS pandemic on their operations.