0
CHALLENGES FACING INSURANCE INDUSTRY IN Kenya
Insurance industry in Kenya is faced by several challenges that make their operation in the Kenyan market not so easy. These challenges are dependent on the people, the status of the market, laws governing insurance in Kenya and the lack of proper information about insurance.
The Kenyan people don't have enough trust in the insurance business majorly due to the number of non-paid claims that lie about within the market. Many claims have not been paid due to prolonged investigations to the point that rather than other insureds recommend insurance to their friends they always end up discouraging them and most of those who seek insurance always do so in order to gain the benefit of tax reduction that comes with the package.
Kenyan market is also a young market that is still not well versed with the diversity of the insurance industry as most people are not used to paying premiums in order to alleviate the risks. Most Kenyans therefore consider these rates exorbitant thus they don't seek insurance. This has been bad for business in the industry as most insurance companies are found straining to meet their budget and pay claims. Some have resorted to unethical means of luring customers into this industry. These are mainly through reduced rates that thus lead to unpaid claims.
Mismanagement of insurance companies is also a notorious factor that hamper insurance industries in Kenya. Some insurance industry lack proper management due to lack of transparency, this has led to customers losing their money in the process and thus making the public lose trust in the industry. Incompetent management could lead to unrealistically low premiums that make insurance affordable yet not payable. Incompetency is also found in the relay of wrong message to the public by various insurance agents whose qualifications are most times in question.
Legal laws set by parliament to govern the insurance industry has also sometimes failed to meet the unique needs of the third world market prominent in Kenya. When insurance companies are forced to pay up a big amount of money for licence and the burden ends up passed to the public has led to high insurance rates that have proved difficult to pay. The motor industry has been forced into insurance by the law such that normally motorists just insure in order to use the roads not as a means of protection.
Dishonesty by the public has also hampered business in Kenya as the public has failed to meet the principle of distribution in cases of double insurance thus leading to benefiting from a misfortune. Sometimes the claims are overstated thus proving to be costly to the public. In situations of insurance application, most people have ended up filling in half-truths and lies so as to be charged cheaper premiums.
Lack of a big pool of customers has led to some risks being uninsurable as the insurance lies on the principle of creating a common pool so that the good of many benefit the misfortune of some. This has really hampered insurance companies in Kenya.
Lack of proper research has led to a poor background for decision making especially in finding out the insurable risks and setting up the premiums to forgo in order to gain the insurance cover.
Some challenges facing the publishing industry in Kenya include limited access to publishing resources and technology, lack of funding for authors and publishers, and competition from imported books. Additionally, issues such as piracy, distribution challenges, and low reading culture also impact the industry's growth.
Insurance industry in Kenya is faced by several challenges that make their operation in the Kenyan market difficult. These challenges are dependent on the people, the status of the market, laws governing insurance in Kenya and the lack of proper information about insurance.
The Kenyan people don't have enough trust in the insurance business mainly due to the number of unpaid claims that remain in the market. Many claims have not been paid due to prolonged investigations to the point that, rather than other insured's recommending insurance to their friends, they end up discouraging them. Most of those who seek insurance always do so in order to gain the benefit of tax reduction that comes with the package.
The Kenyan market is also a young market that is still not well versed with the diversity of the insurance industry because many people are not used to paying premiums in order to alleviate the risks. Most Kenyans therefore consider these rates high and therefore they don't seek insurance. This has been bad for business in the industry as most insurance companies strain to meet their budget and pay claims. Some have resorted to unethical means of luring customers into this industry through inadequate rates leading to inadequate claims paying ability.
Mismanagement of insurance companies is also a notorious factor that hampers insurance industries in Kenya. Some insurance companies lack proper management due to lack of transparency, which has led to customers losing their money in the process and thus making the public lose trust in the industry. Incompetent management could lead to unrealistically low premiums that make insurance affordable yet not payable. Incompetency is also found in the relay of wrong messages to the public by insurance agents who are often unqualified.
Laws set by parliament to govern the insurance industry have also sometimes failed to meet the unique needs of the third world market. When insurance companies are forced to pay large amounts of money for licenses and that burden is passed to the public, rates are affected.
Dishonesty by the public has also hampered business in Kenya, such as by duplication of coverage so as to attempt to realize double recoveries.
Lack of a big pool of customers has led to problems in realizing the "law of large numbers" on which insurance is predicated.
Lack of proper research has led to decision making, especially as to insurability of risks and setting rates and premiums accordingly.
Discuss the challenges facing entreprenural vengers in kenya
the main challenges are insecurity whether its theft or fraud, lack of confidence in the issued bonds poor infrastructure,lack of resources.
setle claims at a short time by doing investigations at a shorter span in order to win the trust of kenyan people.
Add your answer:
Earn +20 pts
What country is poorest Kenya or Ethiopia?
Kenya has a higher GDP per capita than Ethiopia, making Ethiopia the poorest country between the two. However, both countries face significant poverty and development challenges.
What is the poorest place in Kenya?
Kakamega and Bungoma counties in western Kenya are some of the poorest regions in the country. These areas face challenges such as high levels of poverty, limited access to education and healthcare, and high unemployment rates. Efforts are being made to improve the living conditions in these areas through various development programs and initiatives.
Are there gay men in kenya?
Yes, there are probably as many gay men in Kenya as in other countries, anything up to 10% of the population, even though homosexuality is illegal in Kenya and frowned on by most of the general public. This does not mean it is wrong, just against the state law.
What does Ecuador colombia Brazil Kenya have in common?
These countries are all located near the equator, resulting in tropical climates and diverse ecosystems. They also have a rich cultural heritage and are known for their natural beauty and biodiversity. Additionally, they face challenges such as poverty, political instability, and environmental conservation.
What is the poorest part of Kenya?
The poorest parts of Kenya are generally the arid and semi-arid regions in the north and northeast, such as Turkana, Marsabit, and Wajir counties. These areas face challenges such as drought, limited access to resources, and underdeveloped infrastructure, which contribute to high levels of poverty among the population.
What challenges do the people of Kenya face?
The challenges that Kenya would face/are facing include poverty, famine, deforestation, and infant mortality.
What country is poorest Kenya or Ethiopia?
Kenya has a higher GDP per capita than Ethiopia, making Ethiopia the poorest country between the two. However, both countries face significant poverty and development challenges.
What challenges do the northeast fishermen face?
* what are the challenges northeastern fishermen face?
What challenges did the inorganic pigments industry face in the 1980s and early 1990s?
Questions about environmental degradation and the toxicity of heavy metals challenged the inorganic pigment industry throughout the 1980s and early 1990s.
What challenges did Richie macaw face?
what challenges did richie mccaw face becoming a leader
What political challenges face Russian's and their officials?
What political challenges face Russians and their officials
What are the problems that teachers face in Kenya?
lions
What is the poorest place in Kenya?
Kakamega and Bungoma counties in western Kenya are some of the poorest regions in the country. These areas face challenges such as high levels of poverty, limited access to education and healthcare, and high unemployment rates. Efforts are being made to improve the living conditions in these areas through various development programs and initiatives.
2 challenges that many companies face in ethics?
what are two challenges that companies face in ethics
Are there gay men in kenya?
Yes, there are probably as many gay men in Kenya as in other countries, anything up to 10% of the population, even though homosexuality is illegal in Kenya and frowned on by most of the general public. This does not mean it is wrong, just against the state law.
What challenges did Obama faced?
You spelled faced and not face that is why you don't have a answer.If your question is what challenges will Obama face........... well I don't know.But if your question is what challenges did he face well............ I still don't know.
How did Sacagawea face her challenges?
she faced her challenges by being resilient
