Assessment of Insurance Uptake and Penetration in Kenya (A Case of Nakuru County)
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Date
2014-06-24
Authors
Kimotho, Hannah Kimotho
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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.