Policy Interventions to Contemporary Challenges and the Performance of Insurance Companies in Kenya a Case Study of Jubilee Insurance Company
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Date
2018Author
Abongo, Benjamin O
Type
ArticleLanguage
enMetadata
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The article sought to review the contemporary challenges and their policy interventions in the Kenyan insurance
industry in terms of the external and internal challenges affecting the insurance business and which require
leadership and managerial actions. The researcher reviewed the contemporary challenges and the performance of
insurance companies in Kenya by looking at the external business environmental challenges and how they affect the
management of Insurance companies. Secondly, the study considered how Kenyan insurance companies adapt and
adjust their internal practices and processes to satisfy the changing customer expectations. The article goes further to
review the critical policy issues which are required to address: changing consumer dynamics, enforce strict
compliance with the stringent regulations, constant product innovations, and greater need for communication,
technological disruptions, on-demand marketplace, and compensation. Using peer-reviewed literature and the
published integrated annual reports of Jubilee Insurance Company Ltd; the study discussed and highlighted the
policy interventions in relation to the demands of business and customers. Using Jubilee Insurance as a model
insurance company in a case study, the researcher found that by combining performance driven behaviour and
regular use of management control systems, Insurance Companies were able to post improved results. The Choice of
Jubilee was driven by its size and stability among the Kenyan insurance companies. Jubilee has adopted an
integrated reporting system which enabled the researcher to obtain the empirical information required from a
secondary source. The researcher reviewed the data from the company‟s integrated annual reports for the ten years
from 2007 to 2017. The study looked at the control systems, including informal and formal controls and subjected
these controls to a more comprehensive analysis to establish the impact of management control systems and strategy
on the insurance company performance. The study suggested further empirical research to find the linkage between
the policy interventions to various challenges and the performance of the insurance companies in Kenya.
Publisher
International Journal of Economics and Financial Research