MDF Theses and Dissertations

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Browsing MDF Theses and Dissertations by Author "Birech, F."

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    The Effects of partner-agent business model on business performance of microinsurance firms in Kenya
    (Strathmore University, 2023) Birech, F.
    Insurance is a form of protection from destruction of property, or life. However, majority of Kenyans have no access to insurance coverage. Despite tailor made solutions offered by microinsurance, its performance has been less than expected. This study examined influence of distribution channels on business performance of microinsurance by assessing effects of partner-agent dimensions of collaborative product design, information sharing, and transaction costs. The study was anchored on Core Competency, Transaction Cost, and Information Asymmetry theories. Adopting a correlational research design, the study targeted the 8 microinsurance firms as the units of analysis and 203 management staff as the units of observation from which a sample size of 136 was calculated. A structured questionnaire was used for collecting data and its reliability was tested using internal consistency measure of Cronbach Alpha from which the items were found to be reliable. Descriptive, correlation, and multiple linear regression analysis were conducted at the 95% confidence interval after performing diagnostic tests to determine assumptions for regression analysis were met. The mean scores show that product design had the highest scores followed by transaction costs, and information sharing respectively. Correlations coefficients indicated moderate positive and significant correlation between collaborating in product design, transaction costs, and information sharing with microinsurance business performance. The model explained 55.8 % of variation on microinsurance business performance; out of the three explanatory variables, collaborative product design had the greatest effect followed by information sharing, and transaction costs. The study concludes that collaborative product design had the greatest effect on microinsurance business performance followed by information sharing with transaction costs had the least effect. Based on this, the research recommends that that partners and agents should distribute products through a means that is convenient to clients by developing products that meet consumer expectations. Secondly, partners and agents should make a concerted effort to enhance continuous flow of information to facilitate better pricing of microinsurance products. Lastly, that microinsurance firms should make an effort to reduce the clients’ claims processing costs by lowering costs for distributing and reaching low-income clients.