Due to globalization and technological developments, global insurance industry is in upward trend.
However, insurance penetration is still low in Kenya. Limited studies have been conducted on
significant influence of competitive strategies on performance of insurance companies in Kenya.
The general objective of this study was to evaluate influence of competitive strategies on
performance of insurance firms in Kenya. The specific objectives were to determine the influence
of differentiation, cost leadership and market development on performance of insurance firms in
Kenya. The performance determinants were profitability measured by net profit and market share
evaluated by total annual gross premium. This study was guided by balanced scorecard model,
contingency theory, Ansoff growth matrix model and Porter’s generic competitive theory. This
study used descriptive research design. Target population was 55 registered firms as at 2017
provided by Insurance Regulatory Authority 2017 annual report. Stratified proportionate random
sampling was used in selecting the respondents and Yamane Formula in determining the number
of 110 target respondents. This study used structured questionnaire to collect primary data. The
questionnaire was tested for face validity through expert judgment by the supervisor. Further pretest
of questionnaire was done on 10 respondents where there views were incorporated. For
external and internal reliability, test-retest and Cronbach’s Alpha was applied respectively. This
study adopted Cronbach’s Alpha value of 0.78 as cut off. Both inferential and descriptive data
analysis was used then results were illustrated on tables. Pearson’s correlation and multiple
regression analyses were employed for inferential analysis. To establish the level of variation in
the dependent variable in relation to independent variables variation, this study used analysis of
variance. The study also utilized scientific package for social science seventeen as the analysis
tool. The study findings indicate that independent variables had a positive significant correlation
with the dependent variable. Differentiation had the highest correlation then cost leadership and
finally market development. The findings further established that 50.2% (R2 = .0502) of the change
in the firm’s performance was influenced by change in competitive strategies. This study thus
concluded that: differentiation, cost leadership and market development strategies had a positive
and significant influence on organizational performance of insurance companies in Kenya at 95%
confidence level. In addition, the study concluded that the regression model applied was suitable
at 95% confidence level with analysis of variance of F value of (P
AUSTINE, O (2021). Competitive Strategies And Performance Of Insurance Companies In Kenya. Afribary. Retrieved from https://afribary.com/works/competitive-strategies-and-performance-of-insurance-companies-in-kenya
AUSTINE, ODHIAMBO "Competitive Strategies And Performance Of Insurance Companies In Kenya" Afribary. Afribary, 01 Jun. 2021, https://afribary.com/works/competitive-strategies-and-performance-of-insurance-companies-in-kenya. Accessed 30 Mar. 2023.
AUSTINE, ODHIAMBO . "Competitive Strategies And Performance Of Insurance Companies In Kenya". Afribary, Afribary, 01 Jun. 2021. Web. 30 Mar. 2023. < https://afribary.com/works/competitive-strategies-and-performance-of-insurance-companies-in-kenya >.
AUSTINE, ODHIAMBO . "Competitive Strategies And Performance Of Insurance Companies In Kenya" Afribary (2021). Accessed March 30, 2023. https://afribary.com/works/competitive-strategies-and-performance-of-insurance-companies-in-kenya