Management Perception of Bank-assurance as Risk Mitigation Strategy at Equity Bank Kenya Limited

Abstract

The business world and specifically financial industry has become challenging and of uncertain business environment in terms of new technology, political dynamics, government policies and advanced human resources. This therefore calls for dynamic leadership that needs to be creative and innovative in creating their competitive strategies. To mitigate these challenges, some firms' have designed management strategies to sustain growth, acquire new businesses or merely mitigate risk facing the business. This topic considers strategic alliances at Equity bank commonly referred to as Bancassurance as a business strategy adopted by Equity bank, and insurance companies as one of the pursuit of their diverse organizational objectives and challenges. The purpose of this study is to establish if Equity bank and insurance companies can mitigate some of management problems such as high loan default leading to high credit risks, switching of customers due to dissatisfaction, declining profits, resistance to buy new insurance products hence minimum market growth among others. The study intends to find out if, Bancassurance model is a good source of revenues, customer acquisition, and retention and as one of the factors that investors consider before taking the risk of investing in commercial industry. The study also intends to .revealed management perception towards Bancassurance has influence on determining the success and speed of implementation and putting in place strategies of compensating business losses, death of insured applicants among others in an effort to ensure there is minimum loss in business.