Value of E-Business to Insurance Firms in Kenya

Abstract

The insurance industry plays a significant role in a growing economy in terms of providing indemnification of risks faced by both individuals and firms, in addition to being an institutional investor. Research indicates that e-business system contributes significantly to national productivity growth through the removal of non-value added activities in the business process. This study sought to evaluate the value of e-business by insurance firms in Kenya. A descriptive research design was used to undertake the study. The population from which the study was undertaken was all the firms licensed to undertake insurance business in Kenya, whose number stood at 43 as at June 2013. A representative sample of 26 insurance firms, representing 60% the whole population was selected at random, which is within the limits of the generally accepted statistical conditions. Primary data was collected with the aid of a semi-structured questionnaire. Content analysis was employed for data pertaining to the background of the respondents and Company while data pertaining to the objectives of the study was analyzed by employing descriptive statistics such as frequencies, mean and standard deviations. Descriptive statistics are used to describe the basic features of the data in a study.  Findings of the study show that the factors influencing implementation of e-business in the insurance sector in Kenya are categorized into two - technological and managerial.

Keywords: Value; E-Business; Insurance firms