Effects of ethical practices on the level of confidence in Kenya’s insurance sector
Date
2024
Authors
Macharia, L. O.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The purpose of this study was to examine the effects of ethical practices on confidence in the insurance sector in Kenya. Although research indicates that ethical behaviour is crucial in forming trust and confidence, the current body of literature has not sufficiently addressed the nexus of insurance ethics -both business (supply side) and consumer (demand side) ethics- and its significant influence on confidence in the Kenyan insurance sector. The specific objectives addressed to achieve this purpose included to assess the effect of demand-side factors of insurance ethics on the confidence in the insurance sector in Kenya, to examine the effect of supply-side factors of insurance ethics on the confidence in the insurance sector in Kenya, and to examine the mediating role of the regulatory environment on the relationship between insurance ethical practices and confidence in the insurance sector in Kenya. The study was anchored on the social exchange and stakeholder theories. The specific objectives were achieved guided by the positivism research philosophy, quantitative method for data collection and analysis, and the descriptive research design. A sample of 400 insurance customers and 389 insurance professionals were surveyed. The customers were selected using simple random sampling while the insurance professionals were selected using stratified random sampling. A five-point Likert scale was utilised in the survey and data collected was analysed using both descriptive and inferential statistics. The findings indicate the demand side factors of insurance ethics have no significant effect on confidence in the industry. Conversely, supply side factors of insurance ethics are positive significant predictors of confidence in the industry. Finally, the results indicate that regulatory environment fully mediates the relationship between supply side factors of insurance ethics are positive significant predictors of confidence in the industry. The study’s findings imply that the actions of insurers are useful in improving confidence levels in the sector, thereby improving the penetration levels, which have been quite low.
Key words: Ethics, Insurance, Penetration rate, Confidence, Kenya
Description
Full - text thesis
Keywords
Citation
Macharia, L. O. (2024). Effects of ethical practices on the level of confidence in Kenya’s insurance sector [Strathmore University]. http://hdl.handle.net/11071/15547