Comparative Analysis of Environmental influence on Growth of Low vis-a-vis High performing Insurance Agents in Mombasa County, Kenya

Abstract

The insurance industry in Kenya has realized rapid growth over the past years stretching to two decades. This is evidenced by the large number of insurance companies currently operating in Kenya which currently stand at forty seven insurance companies. Behind these insurance companies are one hundred and fifty seven (157) insurance brokers, twenty three (23) Medical insurance providers and a staggering four thousand two hundred and five (4205) registered and licensed insurance agents who act as intermediaries to the business of underwriting risks. The insurance industry gross premium as shown in the year 2012 annual report by the Insurance Regulatory Authority (IRA) is Kshs.108.6 billion up from Kshs.97.5 billion in 2011 translating into business growth of 11.4% at a time when the Kenyan economy growth rate was less than 4% p.a. The research survey sought to investigate the environmental issues influencing low performing insurance agents vis-à-vis high performing insurance agents that causes remarkable disparity on business growth witnessed amongest insurance agents. Special focus was put on Mombasa County. The survey highlighted on challenges faced by insurance agents in Mombasa County. It showed strategies employed by those agents who have excelled in business. The survey was meant benefit the insuring public as well as researchers and academics interested in the insurance sector for future references and scholarly contribution in the area of study. A descriptive survey design was used. The research targeted insurance agents within the Mombasa County. Random sampling as well stratified sampling techniques was adopted. Questionnaire and observation schedules were used to extract information from sampled respondents. The data was then analyzed using a software package for statistical analysis originally Statistical Package for Social Sciences. The research found that business growth among insurance agents is anchored upon the overall operational environmental factors.

Keywords: Comparative Analysis, Insurance Agents, Low Performing Agents, High Performing Agents