Technology Innovation and Performance of General Insurance Companies in Kenya

The performance of general insurance companies is important to the development and stability of the insurance sector and the broader Kenyan economy. However, general insurers continue to operate in an environment characterized by changing customer expectations, technological developments, operational pressures, competition, and relatively low insurance uptake. Technology innovation has therefore become increasingly relevant to insurers seeking to improve service delivery and organizational performance. This study examined the relationship between technology innovation and the performance of general insurance companies in Kenya. The study was guided by Diffusion of Innovation Theory, Resource-Based Theory, and Risk Management Theory. A positivist research philosophy and quantitative correlational and explanatory research design within a cross-sectional framework were adopted. The target population comprised 451 top-level managers from 35 general insurance companies in Kenya, from whom a sample of 302 managers was selected using stratified and simple random sampling. Primary data were collected using structured questionnaires, with 221 usable responses obtained, representing a response rate of 73.17%. Data was analysed using descriptive statistics, Pearson correlation, and simple linear regression. The findings indicated a positive and statistically significant relationship between technology innovation and organizational performance (r = .568, p < .001). Regression analysis showed that technology innovation significantly predicted organizational performance, R = .568, R² = .322, adjusted R² = .319, F(1, 219) = 104.128, p < .001. The standardized regression coefficient was positive and statistically significant (β = .568, p < .001), indicating that technology innovation accounted for 32.2% of the observed variance in organizational performance. The study concludes that technology innovation is significantly associated with the performance of general insurance companies in Kenya. The study recommends strengthening digital platforms, digital claims management, operational digitization, and appropriate application of emerging technologies while ensuring adequate organizational capabilities and data protection.

technology innovation, organizational performance, general insurance companies, insurance uptake, Kenya.

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