Effects of operational factors on organizational performance in Kenyan insurance industry

Abstract

Performance of insurance firms has largely been influenced by operational factors. Insurance firms have continually performed poorly in the Kenyan market since 1985. So far, there is still limited information as regards this trend. The objective of the study was to establish the extent to which operational factors affect the performance of insurance firms. The study adopted a descriptive census survey design. The study location was in Nairobi and the population consisted of 40 registered insurance companies as at August 2010. Reliability of the results was determined by the test-retest approach. Validity of the research instrument was established by using two firms outside the target population. Data was analyzed using descriptive statistics and inferential statistics. The hypothesis was tested using simple regression coefficient at 95% confidence level. The study revealed that operational factors have no relationship with organizational performance.