Risk management and financial performance of insurance firms in Kenya

Kiptoo, Isaac Kibet; Kariuki, Samuel Nduati; Ocharo, Kennedy Nyabuto

doi:10.1080/23311975.2021.1997246

Cited by 22 publications

(28 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, these rules are successfully used in expert evaluation by suitably qualified experts. For the assessment of the state of risk management in the country and the use of InsuranceInsurance as a management tool, the profit and loss reporting reports of enterprises in 2019 (not used in the study due to the 2020 pandemic) were studied: by the size of production and organizational-legal form (Volosovych et al, 2021;Kiptoo et al, 2021) Of the 17 economic activities in the country, eight large enterprises, ten medium and six small enterprises ended the year with a loss. It should also be noted that there would be a loss of planned profits, which is not apparent from public information (Geostat (2021).…”

Section: Methodsmentioning

confidence: 99%

Risk Management Problems and the Role of Insurance in Developing Countries

Glonti¹

2023

MNJE

View full text Add to dashboard Cite

The increase in the scale of globalization expands the area of economic relations, complicating the decision-making process of a particular economic entity or individual, taking into account the expected risks. Enterprise management could avoid risks identified based on expertise or minimize the consequences by developing risk management methods. However, the main problem is not the risk management methods but the insufficient knowledge and experience required to apply them. Especially The developing countries feel the low level of expertise. One of the risk management methods is the insurance mechanism, which does not serve to avoid the expected risks. Still, no other risk factors related to the activity arise by compensating for the incurred loss on time. The role of the insurance market in the risk management of economic entities is directly associated with the risk attitudes of both managers and other employees. The developed insurance market is one of the most powerful tools for social development. The paper brings to the fore the problems of risk management. Their review assesses the state of the insurance market, which reflects the attitude of the risk culture and its management, both legal entities and individuals. The analysis show that the insurance market is imperfect in Georgia, which are unlikely to adapt and act adequately to emerging risks in the global world in the face of existing risk attitudes, the low culture of information storage, and the financial constraints of potential insurers. Therefore, there is a belief in government support, which is widespread in European member states.

show abstract

Section: Methodsmentioning

confidence: 99%

Risk Management Problems and the Role of Insurance in Developing Countries

Glonti¹

2023

MNJE

View full text Add to dashboard Cite

show abstract

“…Receivables management policy also helps the businesses to grow its revenue turnover and lessen the borrowing costs. Payables management policy also enables a firm to increase production and avoid liquidity risks (Kiptoo, 2017). In order for the Kenyan firms to enjoy long survival in business, its critical for them to manage working capital effectively.…”

Section: Smes and Kenyan Perspectivementioning

confidence: 99%

Working capital management, Liquidity and Financial Performance: Context of Kenyan SME’s

Chasha

Kavele

2022

SSRN Journal

View full text Add to dashboard Cite

“…Although some studies have explored the African insurance market, the underlying drivers of underwriting performance have not been explored fully. The available evidence mainly focuses on efficiency determinants (Ansah-Adu et al, 2011), competition and market power (Alhassan et al, 2015;Alhassan andBiekpe, 2016, 2019), determinants of profitability Kiptoo et al, 2021), insurance regulations (Kusi et al, 2020), risk management practices (Akotey and Abor, 2013;Atsakpo, 2019), insurance fraud (Akomea-Frimpong et al, 2016), the association between intellectual capital and insurers' performance (Asare et al, 2017;Oppong et al, 2019), insurance brokers' profitability (Kotey et al, 2021) and PESTEL analysis of insurers (Kampanje, 2014). The findings on the Ghanaian market suggest that the industry is very concentrated (Alhassan et al, 2015), leverage and market shares drive its efficiency (Ansah-Adu et al, 2011), and that investment income sets off its underwriting losses .…”

Section: Introductionmentioning

confidence: 99%

“…, 2015; Alhassan and Biekpe, 2016, 2019), determinants of profitability (Akotey et al. , 2013; Kiptoo et al. , 2021), insurance regulations (Kusi et al.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

What accounts for the high underwriting losses in the Ghanaian insurance industry?

Akotey

Aawaar

Boamah

2022

AJEMS

View full text Add to dashboard Cite

PurposeThis research explores to answer the question: What accounts for the substantial underwriting losses in the Ghanaian insurance industry?Design/methodology/approachThirty-four (34) insurers' audited financial reports covering the period of 2007 to 2017 were analysed through dynamic panel regression to uncover the underlying causes of high underwriting losses in the Ghanaian insurance industry.FindingsThe findings indicate that efforts at increasing market share by overtrading add no value to insurers underwriting profitability. The underwriting risk suggests that the industry charges disproportionately too small premiums for the risks it underwrites. This may indicate under-pricing by some insurers to grow their customer base.Practical implicationsThe findings have implications for managerial efficiency and risk management structures that align compensation with underwriting efficiency.Originality/valueThe association between managerial preference and the underwriting performance of insurers in emerging markets has rarely been researched. This study responds to this knowledge challenge.

show abstract

Risk management and financial performance of insurance firms in Kenya

Cited by 22 publications

References 36 publications

Risk Management Problems and the Role of Insurance in Developing Countries

Risk Management Problems and the Role of Insurance in Developing Countries

Working capital management, Liquidity and Financial Performance: Context of Kenyan SME’s

What accounts for the high underwriting losses in the Ghanaian insurance industry?

Contact Info

Product

Resources

About