Competitive Strategies Adopted by Insurance Companies in Kenya

Abstract

With the increasing level and pace of innovation and competition, market leaders have to create a competitive advantage that enables them to drive and retain superior financial performance within the industry they operate in. The insurance industry in Kenya has been in existence for decades. However to this day, the industry struggles with poor permeation levels of insurance products. This study focused on competitive strategies adopted by insurance companies to remain successful in an industry with low penetration. The objective of the study was to determine the different competitive strategies that insurance firms have adopted to remain profitable and successful. The study adopted a census survey design with the population being all the registered insurance companies. Data was collected through questionnaires and analyzed. The results indicated that majority of the firms used focus or niche and market penetration strategies to create and sustain competitive advantage. They also indicated that all players depend on their quality of service and brand loyalty as their main sources of competitive advantage. Recommendations were made that the firms should look into their managerial policies and practices to ensure they stand out among other key players in the industry. Further studies can be carried out to determine how firms can adopt and use the strategies that are not widely used in the industry to their advantage. The study can also be extended to other industries to see if the same strategies are used across other industries.