Effects of Fraud Management Strategies on Market Penetration in the Insurance Industry in Kenya: A Case of Jubilee Insurance Company

Abstract

This study aimed at understanding effects of fraud management strategies on market penetration in the insurance industry specifically at Jubilee Insurance Company, Kenya. The specific objectives of the study were; to identify the various fraud management strategies used at Jubilee Insurance Company, assess the market penetration of Jubilee Insurance Company and to determine effects of fraud management strategies on market penetration of Jubilee Insurance Company. The study used descriptive research design. The population of the study was 354 respondents and the sample size of 106 employees. Purposive and simple Random sampling were employed. Questionnaire was used to gather data from Jubilee Insurance Company. The findings revealed that fraud Management strategies were adopted at Jubilee insurance Company. It was revealed that market share, sales volumes and distribution channel positively affect the level of market penetration. Findings also revealed that Insurance Regulatory Authority have moderating effect on the relationship between fraud management strategies and market penetration. Set policies, laws and procedures of the Kenyan government affect the extent to which the fraud strategies of the company have impact on the market. This therefore translates to the extent of market performance. The study recommends that Jubilee Insurance Company should incorporate and improve fraud management strategies of fraud governance, fraud prevention, fraud assessment and fraud detection in this recommended order. This would enable the company to avoid resource wastage as well as to improve its market performance.