Factors affecting the performance of insurance companies in Kenya: a case of insurance companies offering cover to public service vehicles in Meru County

Abstract

There is widespread customer dissatisfaction in the insurance industry, stemming from the collapse of PSV insurance companies. This is why the customers have started forming their own insurance companies, for example INVESCO Assurance Company formed by the Matatu Owners Association. Therefore, there is a need for further research to improve the industry performance.

This research proposal examined the factors affecting the performance of insurance companies in Meru County. The study intended to help insurance companies and shareholders to come up with good profitable insurance companies. This will be also a remedy to prevent collapse of more insurance companies not forgetting that insurance contribute greatly to the economy. The researcher adopted a correlation research design to collect data from a population in order to determine the current status of five variables namely: training of staff, fraudulent claims, the motor vehicle accidents, procedures in claims management (independent variables) performance of insurance companies (dependent variable).

The study used simple random sampling where judgment was guided by the purpose of the study to obtain relevant data. The study used questionnaires and interviews where data analysis involved reducing accumulated data to manageable sizes and applying statistical techniques.The data was analyzed both qualitatively and quantitatively.