Browsing by Author "Maina, Boniface Waweru"

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    Effect of Risk Transfer Strategy on the Performance of Selected Insurance Companies in Nairobi City County, Kenya
    (International Journal of Social Science and Humanities Research, 2024) Maina, Boniface Waweru; Kimencu, Linda
    The insurance sector is crucial in offering new ideas to address significant societal, financial, and ecological issues confronting the country. Even though the insurance sector plays a significant role in the economy of Kenya, the level of insurance coverage in the country is still minimal. The recent epidemic has impacted the insurance industry's performance, leading to losses for most companies and ongoing customer complaints. Therefore, the study sought to establish the effect of risk transfer strategy on the performance of selected insurance companies in Nairobi County, Kenya. This research utilized a descriptive research methodology. This study focused on 10 chosen insurance companies in Kenya as its target group. 856 employees from the risk management and compliance departments of the chosen insurance companies were the participants. Survey participants were grouped based on the companies they belong to. Participants were chosen from each group through the use of basic random sampling methods. The sample consists of 273 employees. Primary data was gathered using a partially structured questionnaire. An initial study with 28 participants was conducted. The research utilized content validity, criterion validity, and face validity to assess the specific connection between the assessment and its targeted measurement. A Cronbach's alpha analysis was conducted to assess the consistency of the Likert scale multiple choice questions. The research utilized both qualitative and quantitative data. Thematic analysis techniques were utilized to examine the qualitative data gathered from the open-ended inquiries. Quantitative data was analyzed using descriptive statistical methods like mean and standard deviation. The research carried out statistical analysis, such as correlation and regression, to assess the level of relationship among the variables. The research discovered that the implementation of a risk transfer strategy had a notable and beneficial impact on the overall performance of specific insurance companies operating within Nairobi County, Kenya. The research concludes that risk transfer aids insurance companies in lowering financial and operational risks, enhancing efficiency and productivity, boosting flexibility and adaptability, and fortifying relationships with partners or suppliers. The research suggests that insurance companies should thoroughly investigate and conduct background checks on partners or suppliers before forming any agreements.
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    Risk Management Strategies and the Performance of Selected Insurance Companies in Nairobi City County, Kenya
    (Kenyatta University, 2024-08) Maina, Boniface Waweru
    The insurance industry plays a key role in providing innovative solutions to major social, economic and environmental challenges facing the nation. Despite the insurance industry's contribution to the Kenyan economy, insurance coverage in Kenya remains low. The performance of the insurance industry has also been affected by the recent epidemic, with most insurance companies suffering losses and customer complaints still persisting. Therefore, this study sought to investigate the effect of risk management strategies on the performance of selected insurance companies in Nairobi County, Kenya. The study specifically examined the effect of diversification strategy, risk transfer strategy, risk based audit strategy and risk avoidance strategy on the performance. The study was guided by the balanced scorecard model and portfolio theory. This study adopted a descriptive research design. The target group for this study was 10 selected insurance companies in Kenya. The respondents were 856 employees from the risk management and compliance departments of these selected insurance companies. Respondents to this survey were stratified according to their respective companies. Respondents were selected from each stratum using simple random sampling techniques. There are 273 employees in the sample. A semi-structured questionnaire was used to collect primary data. A pilot study involving 28 respondents was done. The study used content validity, criterion validity, and face validity to determine the unique relationship between the test and what it was intended to measure. A Cronbach's alpha test was performed to test the reliability of the multiple choice questions on the Likert scale. The study used qualitative and quantitative data. Thematic analysis methods was used to analyze the qualitative data obtained from the open-ended questions. Descriptive statistical analysis such as mean and standard deviation were used to analyze quantitative data. The study conducted inferential analysis, including correlation analysis and regression analysis, to determine the degree of interaction between the variables. The study found that diversification strategy, risk transfer strategy, risk based audit strategy and risk transfer strategy had a positive significant effect on the performance of selected insurance companies in Nairobi County, Kenya. The study concludes that diversification is important in investing because it can be a key risk mitigation strategy against market volatility. Risk transfer helps the insurance companies in reducing financial and operational risks, improving efficiency and productivity, increasing flexibility and adaptability, and strengthening relationships with partners or suppliers. Risk-based audits are invaluable at a time of uncertainty, as they allow businesses to adapt more easily to changing conditions through a consistent and comprehensive approach to risk management. Risk avoidance strategy enables the insurance companies to eliminate any exposure to risk that poses a potential loss. The study recommends that the insurance companies should carry out a strategic asset allocation which involves setting a long-term target allocation for each asset class based on an investor's risk tolerance, financial goals, and time horizon. The insurance companies should conduct due diligence and background checks on partners or suppliers before entering into an arrangement. Effective internal auditing requires thorough planning coupled with nimble responsiveness to quickly changing risks. The insurance companies should conduct a thorough risk identification and analysis process to identify sources, causes, and effects of the risks, as well as their probability and impact.