Browsing by Author "DARITON NYAKOMBA OCHANDA"

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    FACTORS INFLUENCING PRODUCT PRICING IN INSURANCE INSTITUTIONS IN KENYA: A CASE STUDY OF MADISON INSURANCE COMPANY
    (Management University of Africa, 2025-08) DARITON NYAKOMBA OCHANDA
    The insurance industry plays a vital role in promoting financial stability and economic growth by providing risk protection, mobilizing savings, and fostering investment. However, in Kenya, the growth of insurance remains relatively low compared to other financial sectors, primarily due to challenges associated with product pricing, consumer perceptions, and institutional inefficiencies. This study examined the influence of consumer, institutional, macroeconomic, and product factors on insurance product pricing and growth, with a focus on Madison Insurance Company. A descriptive research design was adopted, employing both qualitative and quantitative approaches to capture comprehensive insights. The study targeted a population of 100 employees across different departments of Madison Insurance Company, and census sampling was used to include the entire population. Data was collected using structured questionnaires containing both closed and open-ended questions, measured on a 5-point Likert scale. A pilot study was conducted on a separate insurance branch to pre-test the instruments, with Cronbach’s Alpha coefficient used to test internal consistency, yielding reliability values above the acceptable threshold of 0.7. Content validity was ensured through expert review by supervisors and insurance specialists. Data was collected physically and electronically, then cleaned, coded, and analyzed using descriptive statistics such as frequencies and percentages, while qualitative responses were analyzed thematically. The findings revealed that product factors such as discounts, bundling, and product framing significantly affect pricing and adoption, while consumer-related factors like income, awareness, and perceptions were critical determinants of uptake. Institutional issues, including sales training, claims management, and distribution channels, were also found to impact growth. Macroeconomic variables such as inflation, employment levels, and regulatory frameworks influenced affordability and penetration of insurance products. The study concludes that aligning product pricing with consumer needs, institutional efficiency, and prevailing economic conditions is vital for the growth of the insurance industry in Kenya. It recommends the adoption of customer centered pricing strategies, simplification of insurance products, and enhanced awareness campaigns to build trust and increase penetration. Policymakers should also strengthen regulatory frameworks to reduce administrative costs and promote innovation. The study adhered to ethical principles by ensuring informed consent, voluntary participation, confidentiality, anonymity, and privacy of respondents. Future research should explore the role of digital platforms and fintech innovations in addressing pricing and accessibility challenges in Kenya’s insurance sector.