Effect of Emerging Strategic Issues on Performance of General Insurance Companies in Kenya: A Case of Britam General Insurance Company (Kenya) Limited

Abstract

This study sought to investigate effect of emerging strategic issues within the general insurance practice on performance through an in-depth analysis of Britam General Insurance Company (Kenya) Limited (Britam). The specific objective of the study was to establish emerging strategic issues, the measures of performance and the effect of emerging strategic issues on performance at Britam. The study was anchored on Porter’s theory of competitive advantage, survival-based theory and contingency theory. The study adopted a descriptive research methodology. The study targeted a population of 172 Britam employees. Data was collected through self-administered questionnaires to a random stratified sample of 53 and in-depth interviews of six key management staff. Data was analyzed statistically using SPSS version 21 to establish descritpive statistical measures central tendencies and inferential statistics through simple regressions analysis. The study found that core elements to business; operating environment is in constant change and organizations ought to remain alert regarding emerging developments, trends and events. The findings also revealed that effect of emerging strategic issues on performance cannot be downplayed as they explain performance indicated by profitability. The findings are crucial to policymakers in long-term formulation and implementation of strategy for current and new players. Businesses must be aware of the developments, events and trends that remain relevant currently and in the future if they are to remain sustainably competitive as ultimately, these emerging issues affect performance. Indeed, it is suggested that the study be layered across the insurance industry to broaden related findings.