Assessment of Insurance Uptake and Penetration in Kenya (A Case of Nakuru County)

Abstract
The issue of insurance penetration remains a key concern for insurance practitioners and scholars as well as policy makers. In Kenya insurance penetration has remained low at 3.1% of the country’s GDP as at August 2012 despite the social, economic and political changes experienced in the country in the last 10 years . This study will investigate factors contributing to low insurance penetration and uptake in Kenya. Knowing the reasons why this is so is important given the pivotal role that insurance plays in the development of the country. The study will be a descriptive survey. Primary data will be used in the study and will be gathered through use of a well designed questionnaire. The study will be carried out within Nakuru where our population of interest will be all potential insurance buyers and sellers as well as any other stakeholders in the insurance industry whose views may be deemed important for this study. For instance, interviews will be conducted with the public relations manager and the marketing managers at the Insurance Regulatory Authority representative in the region. Data analysis will be conducted using descriptive statistics. The data will be presented in charts and tables as per the identified themes based on the research objectives. The study will be seeking to find the nature of insurance industry, income, cost of insurance and demographic factors which can explain the current low insurance penetration in Kenya as this has had large negative contributions on uptake of insurance services. The study will in addition investigate whether education contributes to the low insurance penetration. The study will further seek to find whether the existing regulatory framework could be linked to the current low insurance as it was contributing positively to uptake of insurance services.
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