Influence of market share determinants on the non-financial performance of insurance firms in Kenya

Mweu, Frank Mumo
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Strathmore University
The local insurance industry has been facing intense competition from foreign-firms entering the domestic market, banking institutions, and telecommunication firms in their service offering. This has resulted in some of the largest insurance firms facing financial challenges that have limited their overall non-financial performance. This study sought to find the influence of market share factors on the non-financial performance of the insurance firms. The study examined the effect of market segmentation, niche marketing, and market development on the Non-Financial Performance of insurance firms. The study was anchored on the dynamic capabilities and social penetration theory. The study adopted explanatory research, with the unit of analysis being the fifty-five registered insurance firms in Kenya and the unit of observation being three senior staff members in each of the fifty-five-insurance firms. The sample size for this study was one hundred and sixteen staff members drawn from the insurance firms. The study utilized a structured research questionnaire in the data collection. The research instrument was pretested, with twelve of the sample respondents. The collected research data were analyzed using quantitative techniques. The study presented the findings using means, standard deviation, correlation results, and regression summary to determine the strength of the relationship between the variables. The study relied on charts, bar graphs, and tables in the graphical presentation of the results. The study obtained a response rate of 82%. The study concluded that market segmentation, niche marketing, and marketing development positively influenced the non-financial performance of insurance firms. The study recommended that insurance firms should foster their product and service offering through aligning their practices to market demands to improve loyalty and brand image. Further, insurance firms should review their specialized market segmentation and niche practices to the market needs and market information available. Further, insurance firms should enhance new market acquisition and development through better strategic positioning.
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Market segmentation, Niche marketing, Market development, Performance, Insurance firms