INTRAPRENEURSHIP FACTORS AND THE GROWTH OF INSURANCE COMPANIES IN KENYA

Abstract

In the recent past, the insurance sector in Kenya has faced numerous challenges that have hindered its growth. The growth lag in the industry has led to low insurance penetration rates affecting all industry players but more significantly, insurance underwriting companies. The study embarks on the assessment of the role played by key intrapreneurship factors namely, innovation, and risk taking propensity on the growth of   insurance companies operating in Kenya. The research adopted a descriptive research design with the target population drawn from legally registered and licensed insurance companies in Kenya. Appropriate sample size was determined using stratified random sampling technique from the two categories that is general and life insurance underwriters. A total of 144 respondents were targeted from the sample size of 48 companies. Data collection was conducted through the use of questionnaires and thereafter analysed using descriptive and statistics. The overall objective  is to determine the influence of intrapreneurial factors namely innovativeness, and risk taking propensity as exercised  by individual  employees  on the growth of insurance companies in Kenya. The study concludes that individual employee driven innovativeness has a significant effect on the growth of insurance companies in Kenya. Further, the study concludes that individual employee risk taking propensity has a significant effect on the growth of insurance companies in Kenya. Based on the findings, This study recommends that the management of insurance firms in Kenya should formulate and implement an effective strategy for encouraging and rewarding employee innovativeness. In addition, the management of insurance firms in Kenya should ensure effectiveness in strategic scanning, leadership/ influence and problem solving to enhance firm growth.