Strategies Adopted by Takaful Insurance of Africa to Penetrate the Insurance Market in Kenya

Abstract

The study investigates the strategies that Takaful Insurance of Africa have adopted in order to penetrate the insurance market in Kenya. Takaful Insurance of Africa was launched in Kenya in the year 2011 and within a span of three years the net written premium is kshs726million. The objectives of the study were to determine the strategies adopted by Takaful insurance of Africa in penetrating the insurance market in Kenya and the challenges the organization encounters in the process of its operations. A case study design was used; data was collected from respondents using an interview guide and data was analyzed using content analysis. From the findings it is clear that surplus and Mosque assurance are the leading strategies adopted by Takaful Insurance of Africa to penetrate the Kenyan Market. The study recommends that the organization need to allocate a budget for advertising through both print and electronic media in order to attract the Non-Muslims clients who are interested in purchasing Takaful insurance and also to remove the myth that Takaful insurance only belongs to Muslim community only. This will make the conservative public to be informed and make right decisions and choices with regard to their insurance needs. The study recommends further that the organization need to allocate a budget on Research and development of unique Takaful products that will differentiate them from the conventional insurance. The study further reveals that Takaful Insurance of Africa is the first fully fledged sharia compliant underwriter and the insurance industry is eager to find out how it will perform before other players can register subsidiary insurance companies.