• Corpus ID: 212613943

FACTORS INFLUENCING PENETRATION RATE OF GENERAL INSURANCE SERVICES IN NAIROBI, KENYA

@inproceedings{Nzulwa2018FACTORSIP,
  title={FACTORS INFLUENCING PENETRATION RATE OF GENERAL INSURANCE SERVICES IN NAIROBI, KENYA},
  author={Joyce Nzulwa},
  year={2018}
}

• Joyce Nzulwa
• Published 2018
• Business, Economics

The main purpose of this study was to investigate the factors influencing the penetration rate of insurance services in Nairobi, Kenya. Specifically, the study sought to; establish the influence of product factors, macroeconomic factors, consumer factors and institutional factors on penetration rate of insurance services in Nairobi, Kenya. On methodology the study used a cross-sectional survey. The target population of the study included all the Insurance companies in Kenya, forty seven (47) in number, under the umbrella body of the companies, that is, Association of Kenya Insurers (AKI) and the Regulator, the Insurance Regulatory Authority (IRA). Statistical Package for Social Sciences (SPSS) was used as an aid in the analysis of quantitative data. Qualitative data from secondary sources and open-ended questions was analyzed through content analysis and the results presented in prose thematically. The study found out that; the consumer factors affect market penetration of insurance companies in Kenya especially in relation to convenience of getting the product, consumer’s knowledge of the products as well as the benefits associated with the insurance products. Institutional factors affect market penetration of insurance companies in Kenya particularly those concerning the reputation of an insurance company, the pricing of products and adoption of new technologies by insurance companies. Macroeconomic factors that relate to higher income is expected to increase the demand for insurance because of a greater affordability of life insurance products, especially for the higher risk products. However, the possibility that new firms are likely to enter the industry on competition was not a worrying factor of insurance penetration. Product factors affect market penetration for insurance companies in Kenya especially the products offering a saving and investment opportunity as well as the positive characteristics of the insurance product. The study concluded that macroeconomic factors had the highest level of significance, followed by product factors, then consumer factors and lastly institutional factors Key terms: Product Factors, Macroeconomic Factors, Consumer Factors, Institutional Factors