Strategic issue management in the insurance Companies in Kenya

Abstract

The purpose of this study was to establish the current strategic issue management practices in the insurance companies in Kenya and factor influencing these practices. In order to meet these objectives, information was sought through the use of a questionnaire. The data collected was analysed using frequency tables, percentages, and other statistical measures. The study established that most companies (96.7%) under the study had flexible plans to accommodate environmental impact/changes on their businesses as apposed to a few (3.3%) that did not. Changes in interest rates had the most profound impact on the companies under the study, followed by insecurity, increased competition, government policy and infrastructure in that order. The study also established that though majority of Kenyan firms (more than 95%) practiced real time Strategic Issue Management, none demonstrated the use of European matrix as prescribed by Ansoff (1990) and that only 20% of the respondents alluded to the availability of an issue management department in their organization while 80% did not have. The findings from the analyses led to three major conclusions; first, Companies need to continuously monitor strategic issues throughout the year in order to be able to realize the full potential of investing in SIM. The European matrix, method may help companies discover real time positive synergy; therefore it should not be ignored. Lastly, companies need a separate but highly networked department to specifically deal with strategic issues.