Maina, Kamau Stephen2019-03-192019-03-192016-11http://ir-library.ku.ac.ke/handle/123456789/19144A Research Project Submitted to the School of Business in Partial Fulfillment for the Award of Degree in Master of Business Administration (Finance Option) of Kenyatta UniversityFinancial performance of insurance companies has been declining due the decrease in profitability as a result of the rise in competition, changes in technology, deregulation and as well as globalization. The collaboration between insurance companies and financial institutions to distribute or cross-sell insurance products, through Bancassurance which provides a one-stop-shop platform whereby customers can access insurance services among other financial solutions, is the only platform to stabilize this industry in Kenya. The objective of this study was to assess the effects of bancassurance on the financial performance of selected insurance companies in Kenya. The specific objectives were to determine the effect of: insurance penetration, financial integration and innovation of product and services on financial performance of selected insurance companies in Kenya. The researcher adopted descriptive cross sectional research design, with a target population of six selected (Jubilee Holding Limited, Britam Holding, CIC Insurance Group, Kenya Re-insurance, Liberty Kenya Holding and Pan Africa Insurance). Purposive Sampling design was adopted in the study. Data was instrumented through a questionnaires, the use of both primary and secondary data is setting of this study. The use of descriptive statistic in collaboration with a multiple regression model and correlation analysis were conducted; this was conduct via use of with Statistical Package for the Social Sciences (SPSS). Finally the data was presented on graphs, tables and pie charts. The study found a strong and positive relationship bancassurance implementation and financial performance of insurance companies in Kenya. The specific objective; insurance penetration had a positive correlation with financial performance, while financial integration had low correlation relationship with financial performance of the insurance companies and finally innovation of products and services component of bancassurance have above average relation with financial performance of in insurance companies. The recommendation: Insurance penetration, financial integration and innovation products and services have a statistical significant level of bancassurance influence on financial performance. This requires insurance companies, to enhance and strengthen their partnership with commercial banks through regulatory change, centralized marketing policies, and common research development.enThesis