Survey Of Contemporary Challenges Faced In Marketing Of Life Insurance Policies In Embu County

Abstract

Just like many developing nations, Kenya is still in the early phases of comprehensive insurance cover with liability coverage. The considerably low marketing of insurance implies that insurance penetration is pretty low, devastating experience. Such as low penetration is rendering competition in the insurance industry currently high and each insurer is striving to get its slice. As a result, many insurance companies are registering falling business in an extreme situation, and a number have folded because insurance cover coverage has been decreased. The life insurance industry in Kenya, which is becoming dynamic, turbulent, and unpredictable, demands reaction for efficiency and productivity to the environmental change and also serves a significant majority. The way insurance firms operate would be changed through their innovation and by enhancing their goods, markets and operations innovation. However, these studies have not adequately addressed the challenges faced in marketing of life insurance policies. Accordingly, this research was undertaken against this context in order to bridge the gap by assessing the contemporary challenges faced in marketing of life insurance policies in Embu County. The Objective of the study was to establish the effect of; knowledge of insurance to acceptance of life insurance policy in Embu County, perception of life insurance policy by the public of Embu County, influence of culture to taking up of life insurance policy in Embu County, and demographic factors to acceptance of life insurance in Embu County. The asymmetric information theory, The Reasoned Action (TRA), and Basic Economic Theory were the foundations around which this research is built. The research applied a descriptive research methodology, with 81 senior insurance managers from Embu County as the target population and using census for sampling. As a result, the research included responders from the whole target demographic. An unstructured questionnaire and an interview guide were used to gather data for the study. The questionnaire was pretested for validity and reliability in advanced of its administration. In analysis, quantitative approach was used to yield descriptive statistics; explaining relationship between energy strategies and realization of the big four agenda. SPSS was used to assist produce these descriptive statistics. The study findings were beneficial to the insurance companies and policy makers in Embu County for ensuring effective policy making on life insurance policy marketing and to academicians and scholars for knowledge, and researchers and scientists as a reference guide. The study found that; knowledge of insurances has a low positively and significantly affects marketing of life insurance in Embu County, perceptions has a low positively significant effect on marketing of life insurance in Embu County, culture has a moderate positively significant effect on marketing of life insurance in Embu County, and demographics of individuals have low positive and significant effect marketing of life insurance in Embu County. The study revealed that, at 0.05 level of significance, knowledge of insurances, perceptions about insurance, culture and demographics of individuals are strong predictors of marketing of life insurance in Embu County explaining 26.16% variation in marketing of life insurance in Embu County