Abstract: The insurance sector is crucial in offering new ideas to address significant societal, financial, and ecological issues confronting the country. Even though the insurance sector plays a significant role in the economy of Kenya, the level of insurance coverage in the country is still minimal. The recent epidemic has impacted the insurance industry's performance, leading to losses for most companies and ongoing customer complaints. Therefore, the study sought to establish the effect of risk transfer strategy on the performance of selected insurance companies in Nairobi County, Kenya. This research utilized a descriptive research methodology. This study focused on 10 chosen insurance companies in Kenya as its target group. 856 employees from the risk management and compliance departments of the chosen insurance companies were the participants. Survey participants were grouped based on the companies they belong to. Participants were chosen from each group through the use of basic random sampling methods. The sample consists of 273 employees. Primary data was gathered using a partially structured questionnaire. An initial study with 28 participants was conducted. The research utilized content validity, criterion validity, and face validity to assess the specific connection between the assessment and its targeted measurement. A Cronbach's alpha analysis was conducted to assess the consistency of the Likert scale multiple choice questions. The research utilized both qualitative and quantitative data. Thematic analysis techniques were utilized to examine the qualitative data gathered from the open-ended inquiries. Quantitative data was analyzed using descriptive statistical methods like mean and standard deviation. The research carried out statistical analysis, such as correlation and regression, to assess the level of relationship among the variables. The research discovered that the implementation of a risk transfer strategy had a notable and beneficial impact on the overall performance of specific insurance companies operating within Nairobi County, Kenya. The research concludes that risk transfer aids insurance companies in lowering financial and operational risks, enhancing efficiency and productivity, boosting flexibility and adaptability, and fortifying relationships with partners or suppliers. The research suggests that insurance companies should thoroughly investigate and conduct background checks on partners or suppliers before forming any agreements.
Keywords: Risk Management, Risk Transfer Strategy, Organizational Performance.
Title: EFFECT OF RISK TRANSFER STRATEGY ON THE PERFORMANCE OF SELECTED INSURANCE COMPANIES IN NAIROBI CITY COUNTY, KENYA
Author: Boniface Waweru Maina, Dr. Linda Kimencu
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 12, Issue 2, April 2024 - June 2024
Page No: 216-222
Research Publish Journals
Website: www.researchpublish.com
Published Date: 01-June-2024
