Challenges Facing Development of Micro Insurance at Cic Insurance Group Limited in Kenya

Abstract

The study aimed at determining the challenges in the development of Micro insurance at CIC Insurance Group Ltd. The study adopted a case study research design and collected primary data using an interview guide. The interviewees comprised of the micro insurance team at head office, operations officer, strategy and development officer, Business development team, marketing executives, sales agents, customers and underwriting officer at CIC Group Limited in Kenya. Before processing the responses, the completed interview guides were edited for completeness and consistency the data was analyzed using content analysis. The study findings revealed that CIC insurance Group ltd faces product design challenges such as failure of the products formed to meet consumer expectations, rationing challenges that result in incursion of significant transaction costs, in terms of intermediating the product and premium collection and also staff productivity and inefficiency in the development of micro insurance. The study recommends that CIC insurance Group ltd should develop high quality products to attract clients to insurance and lastly the study recommends that it would be useful to carry out the same type of research in other insurance companies and across East Africa and beyond and see whether the same results would be replicated.