THE INFLUENCE OF MARKET INNOVATION STRATEGY ON INSURANCE PENETRATION IN KENYA

 

Francis Kijogi Mutegi (PhD)

Jomo Kenyatta University of Agriculture and Technology

 

Dr. Mike Iravo (PhD)

Jomo Kenyatta University of Agriculture and Technology

 

Dr. Karanja Ngugi (PhD)

Jomo Kenyatta University of Agriculture and Technology

 

CITATION: Mutegi, F., K., Iravo, M., A., & Karanja, N., J. (2016). The Influence of Product Innovation Strategy on Insurance Penetration in Kenya. International Journal of Arts and Entrepreneurship Vol. 6 (1), 1-17.

 

ABSTRACT

Insurance industry in Kenya faces low insurance penetration in terms of market share, product diversification among other measures. Only 6.8% of Kenya’s population has purchased insurance cover with an overwhelming 93.2% never having embraced insurance cover either in life or property. The penetration of insurance in Kenya is estimated at 3.44% which is very low compared to other countries like South Africa with the highest penetration rate of 14%, Namibia 8% and Mauritius 5.94%. This study was designed to assess the role of market innovation strategy on insurance penetration in Kenya. The study focused on the licensed insurance companies in Kenya. This study employed a descriptive research design because it involves describing a phenomenon. The population of the study was 51 Insurance Companies licensed to underwrite insurance services. The sample of the study was 34 insurance companies licenced to offer underwrite insurance services from which 68 marketing, underwriting, finance and claims managers were sampled. From the study findings, majority of the respondents thought market innovation analyzes identifies what customers want. The study found out that majority of the respondents were in agreement that market innovation contribute to insurance penetration.

Key words: Market innovation strategy, Insurance penetration

 

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