top-rated free essay


By franco199320 Feb 25, 2014 514 Words
Insurance industry in Kenya is faced by several challenges that make their operation in the Kenyan market difficult. These challenges are dependent on the people, the status of the market, laws governing insurance in Kenya and the lack of proper information about insurance.

The Kenyan people don't have enough trust in the insurance business mainly due to the number of unpaid claims that remain in the market. Many claims have not been paid due to prolonged investigations to the point that, rather than other insured's recommending insurance to their friends, they end up discouraging them. Most of those who seek insurance always do so in order to gain the benefit of tax reduction that comes with the package.

The Kenyan market is also a young market that is still not well versed with the diversity of the insurance industry because many people are not used to paying premiums in order to alleviate the risks. Most Kenyans therefore consider these rates high and therefore they don't seek insurance. This has been bad for business in the industry as most insurance companies strainito meet their budget and pay claims. Some have resorted to unethical means of luring customers into this industry through inadequate rates leading to inadequate claims paying ability.

Mismanagement of insurance companies is also a notorious factor that hampers insurance industries in Kenya. Some insurance companies lack proper management due to lack of transparency, which has led to customers losing their money in the process and thus making the public lose trust in the industry. Incompetent management could lead to unrealistically low premiums that make insurance affordable yet not payable. Incompetency is also found in the relay of wrong messages to the public by insurance agents who are often unqualified.Laws set by parliament to govern the insurance industry have also sometimes failed to meet the unique needs of the third world market. When insurance companies are forced to pay large amounts of money for licenses and that burden is passed to the public, rates are affected.

Dishonesty by the public has also hampered business in Kenya, such as by duplication of coverage so as to attempt to realize doublt recoveriesLack of a big pool of customers has led to problems in realizing the "law of large numbers" on which insurance is predicated.

Lack of proper research has led to decision making, especially as to insurability of risks and setting rates and premiums accordingly.h ere are some cross-promotion strategies that can really help your company stand out:

Co-produce special promotions you could not afford by yourself. Hire local community college broadcasting/cable TV students to produce a "how to use" video and/or audio tape that involves you and your partner's products. Have a contest, with the prizes contributed by your partners. For the next contest, roles change, and you contribute your product or service as a prize for a partner's contest. Give customers a free product or service from a participating partner when they buy something that month from all of the partners listed in an ad or on a promotional postcard.

Cite This Document

Related Documents

  • Insurance and Lloyd

    ...brand story is the phrase “constant originality”. Based on your research describe where this is supporting the organisation to remain the leading insurance market". Good afternoon ladies and gentleman. Welcome to the presentation. Today, I am going to discuss the following question: ”How being constantly original supports Lloyd’s to re...

    Read More
  • insurance risk

    ...INSURANCE AND RISK MANAGEMENT SOLUTIONS TO STUDY QUESTIONS CHAPTER 1: Nature of risk and its management 1. Explain the meaning of risk. In your explanation, state the relationship between risk and uncertainty. Risk is defined as a condition where there is the possibility of an adverse deviation from an expected outcome. That is, t...

    Read More
  • Insurance for Perishable Goods

    ...UIB GROUP MARINE PERISHABLE GOODS COVER FACT SHEET Using our considerable experience in the field of Produce, United Insurance Brokers have structured an extensive wording specifically for companies involved with Perishable Goods. Growers, producers, buyers, packers, shippers and any business with an interest in Produce and Perishable...

    Read More
  • challenges of motor insurance

    ...players in the insurance markets. There are two kinds of players in the insurance market. They include: Those who want to sell their products and services, i.e. the insurance companies Those who would like to take advantage of the insurance and insure themselves or their products, i.e. clients. According to the differences in the behavior a...

    Read More
  • Relience Insurance

    ...Reliance Insurance Company, now officially known as Reliance Insurance Company [in Liquidation], was founded in Philadelphia in 1817. In October 2005, Reliance Insurance Company had taken place in India. Reliance Life Insurance Company Limited is an associate company of reliance - Anil Dhirubhai Ambani Group. Reliance Capital Limited is one of ...

    Read More
  • Medical Malpractice Insurance

    ...Medical Malpractice Insurance Medical Malpractice Insurance is a necessity for healthcare providers. We tell people that health insurance is a necessity, why? Because it covers them if something unexpected happens, well that reasoning goes for providers also. It helps to cover a situation that isn’t necessarily supposed to happen, but doe...

    Read More
  • Islamic Insurance (Takaful)

    ...Riba, Gharar and Maysir in the conventional insurance, it is therefore compulsory for Muslim to find the alternative way to provide them with a better security which is in line with Shari’ah. In 1979, the first modern concept of Islamic insurance was introduced in Sudan which is based on a cooperative model similar to the conventional insuranc...

    Read More
  • Progressive Insurance Case Study

    ...Progressive Insurance Assignment question: 1. What is Progressive’s business? a. .To provide vehicles owners with security and protection : insurance coverage b. .Damages compensation c. .Quick claims service d. .Immediate response vehicles : inspect of the scene of an accident, estimate, claim and p...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.