COMPETITIVE STRATEGIES AND PERFORMANCE OF LIFE ASSURANCE COMPANIES IN KENYA

Abstract

Despite efforts to improve the life assurance sector in Kenya, not much has been achieved. The country’s growth in life insurance lags behind compared to other developing countries. This study sought to investigate the effect of competitive strategies on the performance of life assurance companies in Kenya. The objectives of this study are to evaluate the effect of cost leadership, differentiation, market focus and customer relationship management on performance of life assurance companies in Kenya. The study adapted a descriptive research design. The target population was the 26 life assurance companies in Kenya and the unit of analysis was top, middle and line managers of the 26 life assurance companies. A sample of 150 managers was selected using systematic random sampling. Data was collected using questionnaires. Reliability was tested through Cronbach’s alpha. The analysis of quantitative data was carried out using descriptive statistics of frequencies, mean, standard deviation, correlation and regression model.  The rcommendations were as follows; Life assurance companies should sustain and continually improve on competitive strategies by investing more on these strategies. This is because these strategies have a significant effect on performance in life assurance companies. The life assurance companies should also consider improving on the CRM and market focus by, investing more in IT techniques that monitor and record customer behavior and preferences, interact more with customer, create more products and services to suit specific customer needs and explore more to find more market segments.  Life assurance companies should make sure that their employees and the management is aware of them and works toward continually improving them.