Effects of Pricing Decisions on Service Delivery Penetration among Insurance Companies in Kenya

Chege Simon Maina and Dr. Maria Mung’ara
Additional contact information
Chege Simon Maina: Mount Kenya University, P.O Box 342-00100, Thika Kenya
Dr. Maria Mung’ara: School of Social Sciences, Business Department, Mount Kenya University

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 11, 672-681

Abstract: Insurance firms have long been regarded as a reliable source of safety nets, with their services enabling investment and cutting down on the reserves necessary for individuals and businesses to weather the financial storms of life. The goal of this research determines how much insurance companies in Kenya’s pricing decisions affect their bottom lines. The following specific goals serves as the basis for this research: The goals of this study were to establish that technology adoption has an effect on the organizational performance of insurance companies in Kenya; analyze the effect of competition on the organizational performance of insurance companies in Kenya; establish that the influence of target customers on the organizational performance of insurance companies in Kenya; and analyze the effect of economic conditions on the organizational performance of insurance companies in Kenya. Price theory by Stigler, market segmentation theory by Tedlow, and the resource-based theory by Rumelt formed the basis of the research. Because of the complementary nature of the insights they yield, the study employs a mixed methodology approach. Specifically, a descriptive research strategy was used for this study. The research took place at insurance companies in Nairobi City County. There were 55 insurance companies used as the unit of analysis. Insurance Underwriting Managers and finance managers who oversee the sale and pricing of insurance policies served as the study’s sampling frame because of their central role in informing the study’s focus. A total of 110 participants were used for the study, all of whom were selected through a census. Primary data was gathered through the use of questionnaires. Descriptive statistics was used to analyze the gathered data. In order to accomplish the goals of the research, we used the mean and standard deviation. All of the quantitative information gathered was analyzed using SPSS version 24. Multiple regression analysis was used to model the association between the independent and dependent variables. The study found there was a significant relationship between technological adoption, competition, target clients, economic conditions and organizational performance. The study concluded and recommended that technological adoption, competition, target clients, economic conditions should be enhanced by the insurance companies to improve organization performance.

Date: 2023
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