Role of strategy in driving business transformation in the insurance industry in Kenya: a case of selected insurance companies in Kenya

Abstract

The purpose of this study was to determine the role of strategy in driving business transformation in the insurance industry in Kenya. The research intended to show how the independent variables which are customer centric; efficiency centric; compliance centric; and capacity centric strategies influence business transformation in the insurance industry in Kenya. In order to achieve this, the study was guided by specific objectives which are:- to determine the role of customer centric strategies in driving business transformation in the insurance industry in Kenya; to examine the influence of efficiency centric strategies on business transformation of the insurance industry in Kenya; to establish the effect of compliance centric strategies on business transformation of the insurance industry in Kenya; and finally, to investigate the role of capacity centric strategies in driving business transformation in the insurance industry in Kenya. The study targeted a population of senior and middle level manager from the 56 registered insurance companies in Kenya out of which a sample of 110 respondents was drawn. The study employed descriptive research design methodology. Quantitative research technique was used where questionnaires consisting of closed and open ended questions were the primary instrument of data collection. The questionnaires were administered through “drop and pick later” method. Data was analyzed using statistical package for social sciences (SPSS) based on the study variables. The data collected was analyzed using both descriptive and inferential statistics. For descriptive statistics; mean scores, standard deviations, percentages and frequency distribution were used while regression and correlation analysis was applied for inferential statistics to determine the relationship between strategies employed and business transformation. The study findings indicated that customer centric, efficiency centric, compliance centric and capacity centric strategies influence the transformation of the insurance industry to a great extent and are responsible for driving the transformation of the insurance industry in Kenya. Efficiency centric strategies were found to be the greatest driver in the transformation of the insurance industry leading to the recommendation that insurance companies would transform the insurance industry more rapidly if they invested more in modern information and communication technology projects that can enhance efficiency in service delivery and ease of interaction with customers.