| dc.description.abstract | Insurance is the business of undertaking liability, and as such, liability to pay for damage
or to make reimbursement in regard to loss, damage and or injury involving life(s), or
property arising from the occurrence of a particular event. Despite the growth in number
of companies and insurance agencies, the insurance penetration level has stagnated at
3.01%. Development of the county both on the economic and social dimensions is
significantly challenged by the low insurance penetration. The main purpose of the
research study was to assess the effect of regulatory frame work on insurance penetration.
How regulation of insurance prices affects insurance penetration in the county. The effect
of price regulation on the penetration of insurance in Kenya. How regulation of claims
settlement enhances penetration of insurance. The effect of insurance product approvals
on insurance penetration, and how regulations of distribution channels affect insurance
penetration in Kenya. The study was based on stakeholder’s theory, utility theory, claims
settlement theory and the theory of distribution channels. The study employed census
method since all the managers were interviewed. All ethical issues pertaining to data
collection were observed. Authorization letter from the university and a research permit
from National Commission for Science, technology & innovation (NACOSTI) was
obtained. Data was analyzed using descriptive statistics and inferential statistics.
Descriptive statistics involved the use of frequencies, percentages, means and standard
deviation. Inferential statistics involved the use of logistic regression. The results of the
analysis indicated that, price regulations, insurance claims settlement process, insurance
distribution channels and regulations on insurance products are all significantly
associated with the odds of insurance penetration in Kenya. Recommendations were
drawn from the findings of the study as follows; the government needs to regulate prices
on insurance products. Second, the insurance claims settlement process needs to be
regulated. Third, the insurance distribution channels need to be regulated to increase
efficiency. Lastly, there is need to regulate insurance products as a way of enhancing
insurance penetration. The study recommends that further assessment of regulations of
other insurance aspects such as customer care, consumer education, and enhanced
regulatory framework be investigated. | en_US |
