Effect of strategies adopted by insurance companies to attract business through agents in Nyeri county

Abstract

A company can outperform its competitors only if it can establish a difference that it can preserve. Itrnust deliver a greater value to customers or create a comparable value at a lower cost or do both. Companies must be flexible to respond rapidly to competition and market changes. They must benchmark continuously to achieve the best practice. Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value (Porter, 1996). The objective of this survey was to investigate the strategies employed by Insurance Companies within Nyeri County to acquire business through insurance agents. This study focused on the fifteen (15) insurance companies who have branches within Nyeri Count and twenty five (25) agents with offices in the four major urban centers within the county. The target population was forty (40) respondents comprising of the principal officer or the deputy in each of the twenty five (25) agencies and fifteen companies under study. This study adopted a census survey design with the administration of questionnaires to the forty respondents on a drop and later pick basis. Quantitative data was analyzed using descriptive statistics such as the use of measures of central tendency like the mode, mean and median while inferential statistics were used to draw conclusions on the findings. The quantitative data was then presented using tables, and pie charts. The researcher found out that all aspects of customer service which were speed of service, accuracy of documents, staff attitude and skills had a great significance in attracting business through insurance agents. Brand visibility was found if well formulated and implemented raised awareness and identity of the organization thus influenced positively business acquisition. The study established that information on organization's pricing status was significant to majority of the respondents. The use of vacation and travel incentive was found to be of medium significance in attracting business through insurance agents within the county. The researcher recommended that based on the study, management should focus more on enhancing quality customer service and address the changing customer needs. In addition, regular customer satisfaction surveys should be undertaken to determine the dynamic customer needs and expectations in the evolving market.