dc.description.abstract |
Purpose: The study investigated government regulation and sustainability of Kenya’s insurance
companies.
Methodology: The study adopted the positivist research philosophy and employed a descriptive
research design. The target population of the study was the 51 insurance companies registered by
the Insurance Regulatory Authority (IRA) of Kenya as at 31st December 2016. The study took a
proportionate sample of 30 companies from 10 life, 15 general and 5 composite companies. The
primary data collection was through a structured questionnaire with closed questions. A pilot
study was carried out before questionnaire distribution, which ensured the research instrument
validity and reliability, before distribution through both hand delivery and email, followed by a
telephone call to the respondents and a research assistant later visiting the respondents to collect
the filled questionnaires. The raw data was cleaned, edited, coded and analyzed to generate
descriptive statistics of ANOVA and T-test and inferential statistics of mean, standard deviation
and frequencies, while secondary data was collected using data collection sheets.
Study Findings: The findings showed that there is a moderating effect of government regulation
on drivers of sustainability of insurance companies in Kenya. While there was positive and
significant effect of government regulation on capital adequacy, management capability and
sensitivity to risk, government regulation had no moderation on asset quality as management of
other variables of management quality, capital adequacy and risk sensitivity would address the
quality of capital.
Unique Contribution: The study recommends that IRA opens up the RBC measurement tool to
bring in sustainability and management indices. Further, IRA should review regulation to support
the insurance companies to enhance innovation and customer service delivery, which are key for
growth, and sustainability of the various insurance companies in the country. |
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