This document summarizes a study that examined factors influencing agent retention in the insurance industry in Kenya. The study focused on three major life insurance companies in Nairobi.
The main objective was to establish factors influencing agent retention, guided by how social demographics, remuneration, resources, product knowledge, working conditions, and training/development influence retention. Questionnaires were administered to 129 agents from the companies.
The findings showed that commissions as remuneration, training/development, social demographics, product knowledge, and resources strategies were key factors negatively influencing retention. Working conditions did not negatively influence retention. The study recommends insurance industries improve resources for agent training/development and resourcing strategies to boost retention.
- The document discusses how weak legislation in Kenya's insurance sector negatively impacts the performance of non-life insurance companies. It analyzes a study that found a negative correlation between weak legislation and insurance company performance.
- The study reported that insurance regulators in Kenya do not adequately monitor insurance rates, conduct compliance audits, or penalize companies that violate guidelines. As a result, companies frequently engage in underpricing that hurts their financial stability.
- The document recommends that Kenyan insurance regulators more strictly enforce existing laws to reduce underpricing and periodically audit companies to ensure guidelines are followed. This could help address the negative effects of weak legislation on company performance.
The current book provides and analyse the existing insurance market in India. It is a throughout study of Indian insurance with exact data archived from IRDA and Trustworthy Financial institute of India.
This book Provides the complete specification and integration required to reach the vision 2025 in prudent understanding.
July 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Insurance Industry
COMPANY ANALYSIS : Reliance - General & Life Insurance
BRAND ANALYSIS : Walt Disney
Concept of the month: Rule of 3 and 4
An Impact of Capital Adequacy Ratio on the Profitability of Private Sector Ba...Dr. Amarjeet Singh
Profitability being one of the cardinal principles of bank lending acts as a game changer for the survival and success of private sector banks in India. In order to stay profitable, banks have to capitalise on every penny advanced to yield the expected returns. However, considering the constraints laid down by the Reserve Bank of India, banks have to maintain a minimum capital adequacy ratio, as per the current BASEL III regulations active in India. With the mergers of public sector banks, the challenge has got just tougher for the private sector banks in India. Expansion and Diversification are the key strategies adopted by the key players from the private banking sector, however, with the minimum capital adequacy ratio observed by them, it is necessary to understand its actual impact on the bank’s profitability. This research paper aims to throw light upon the linkage that capital adequacy has with the bank’s profitability. It attempts to establish a relation between the Capital Adequacy Ratio with the Net profits of the bank. For the purpose of this study, data from the past 5 years of the leading private sector banks has been collected, namely, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, AXIS Bank and YES Bank. The collected data has been analysed using Pearson’s Correlation to establish a relation between the CAR Ratio & the bank’s profitability. Hypothesis testing has been further done to study the quantum of proportionate change in the profitability with a change in the CAR Ratio for private sector banks using applicable research tools. The said research tools are applied to achieve the desired results while maintaining the required quantum of accuracy. It also aims to understand the proportionate impact of changes in CAR to the bank’s profitability, which can act as a suggested measure for banks to develop a reliable framework for efficient capital management and increase overall efficiency. The results derived from the data collected and analyzed aim to provide scope for further study on the subject matter.
A Study on Factors Influencing Customers to Prefer the Policies of Life Insur...Dr. Amarjeet Singh
The policyholders once when they become a part of
the LIC feel free about the safety of their wards since it takes
care of fixed financial benefits based on the premium and the
type of the policy the opted for . The families of the nonpolicyholders meet out uncertainty in many cases. So, there is
an attraction towards life insurance and concern and
awareness about the industry is also improving. People who
care much about them and their families hold life insurance.
The tastes and preferences of policyholders not the same. The
LIC of India has been introducing variety of policies based on
the preferences of the policyholders. It is observed that many
policyholders have taken more than one policy based on their
job nature and family members interest. It is a clear
indication that they are very much interested in utilizing
maximum benefits from Insurance companies. Some people
give due importance to money value and high returns on their
investments. But greater risks are inherent advantages
expected from LIC products. The present study emphasis the
factors influencing customers to prefer the policies of life
insurance of India in Palakkad District.
C.PARAMASIVAN ,PERIYAR EVR COLLEGE , TIRUCHIRAPPALLI indian consumer demeano...chelliah paramasivan
This document summarizes a study on factors influencing Indian consumers' decisions to invest in life insurance. It finds that the most important factors are:
1) Demographic factors like education, income, family size, and employment have a major influence, with more educated, higher income, and larger families more likely to invest.
2) Tax benefits are ranked as the most important reason for consumers to invest in life insurance.
3) Reputation of the insurance company is the most important attribute looked for by consumers when choosing a policy.
- The document discusses how weak legislation in Kenya's insurance sector negatively impacts the performance of non-life insurance companies. It analyzes a study that found a negative correlation between weak legislation and insurance company performance.
- The study reported that insurance regulators in Kenya do not adequately monitor insurance rates, conduct compliance audits, or penalize companies that violate guidelines. As a result, companies frequently engage in underpricing that hurts their financial stability.
- The document recommends that Kenyan insurance regulators more strictly enforce existing laws to reduce underpricing and periodically audit companies to ensure guidelines are followed. This could help address the negative effects of weak legislation on company performance.
The current book provides and analyse the existing insurance market in India. It is a throughout study of Indian insurance with exact data archived from IRDA and Trustworthy Financial institute of India.
This book Provides the complete specification and integration required to reach the vision 2025 in prudent understanding.
July 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Insurance Industry
COMPANY ANALYSIS : Reliance - General & Life Insurance
BRAND ANALYSIS : Walt Disney
Concept of the month: Rule of 3 and 4
An Impact of Capital Adequacy Ratio on the Profitability of Private Sector Ba...Dr. Amarjeet Singh
Profitability being one of the cardinal principles of bank lending acts as a game changer for the survival and success of private sector banks in India. In order to stay profitable, banks have to capitalise on every penny advanced to yield the expected returns. However, considering the constraints laid down by the Reserve Bank of India, banks have to maintain a minimum capital adequacy ratio, as per the current BASEL III regulations active in India. With the mergers of public sector banks, the challenge has got just tougher for the private sector banks in India. Expansion and Diversification are the key strategies adopted by the key players from the private banking sector, however, with the minimum capital adequacy ratio observed by them, it is necessary to understand its actual impact on the bank’s profitability. This research paper aims to throw light upon the linkage that capital adequacy has with the bank’s profitability. It attempts to establish a relation between the Capital Adequacy Ratio with the Net profits of the bank. For the purpose of this study, data from the past 5 years of the leading private sector banks has been collected, namely, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, AXIS Bank and YES Bank. The collected data has been analysed using Pearson’s Correlation to establish a relation between the CAR Ratio & the bank’s profitability. Hypothesis testing has been further done to study the quantum of proportionate change in the profitability with a change in the CAR Ratio for private sector banks using applicable research tools. The said research tools are applied to achieve the desired results while maintaining the required quantum of accuracy. It also aims to understand the proportionate impact of changes in CAR to the bank’s profitability, which can act as a suggested measure for banks to develop a reliable framework for efficient capital management and increase overall efficiency. The results derived from the data collected and analyzed aim to provide scope for further study on the subject matter.
A Study on Factors Influencing Customers to Prefer the Policies of Life Insur...Dr. Amarjeet Singh
The policyholders once when they become a part of
the LIC feel free about the safety of their wards since it takes
care of fixed financial benefits based on the premium and the
type of the policy the opted for . The families of the nonpolicyholders meet out uncertainty in many cases. So, there is
an attraction towards life insurance and concern and
awareness about the industry is also improving. People who
care much about them and their families hold life insurance.
The tastes and preferences of policyholders not the same. The
LIC of India has been introducing variety of policies based on
the preferences of the policyholders. It is observed that many
policyholders have taken more than one policy based on their
job nature and family members interest. It is a clear
indication that they are very much interested in utilizing
maximum benefits from Insurance companies. Some people
give due importance to money value and high returns on their
investments. But greater risks are inherent advantages
expected from LIC products. The present study emphasis the
factors influencing customers to prefer the policies of life
insurance of India in Palakkad District.
C.PARAMASIVAN ,PERIYAR EVR COLLEGE , TIRUCHIRAPPALLI indian consumer demeano...chelliah paramasivan
This document summarizes a study on factors influencing Indian consumers' decisions to invest in life insurance. It finds that the most important factors are:
1) Demographic factors like education, income, family size, and employment have a major influence, with more educated, higher income, and larger families more likely to invest.
2) Tax benefits are ranked as the most important reason for consumers to invest in life insurance.
3) Reputation of the insurance company is the most important attribute looked for by consumers when choosing a policy.
An Investigation into the Financial Performance of Micro, Small and Medium En...Dr. Amarjeet Singh
Micro, small and medium enterprises (MSMEs) are an indispensable part of the Indian economy. In terms of Gross Value Added (GVA) and Gross Domestic Product (GDP), MSMEs accounted for about 33% and 31% of India's GVA and GDP, respectively, in the year 2019-20. Unlike large enterprises that are concentrated in the metros, MSMEs are spread across smaller and larger rural as well as urban centres of India. They are also the biggest source of employment, especially in rural India, and contribute to the rural development and industrialisation. MSMEs also act as a great social bridge as smaller enterprises are owned by socially backward classes and women than are larger enterprises. For these reasons and more, the India government has always promoted the growth and development of MSMEs through policy initiatives, technology up gradation, and via other means. Consequently, MSMEs have also grown in multi-folds in the past decades in terms of the number of enterprises in operation and the collective revenue of the sector. Several challenges affect the growth of MSMEs, however. One of these is the limited academic studies into the financial performance of MSMEs, probably due to the unavailability of adequate data. The present research attempts to fill this gap by conducting a financial performance evaluation of 51 sample MSMEs based in the district of Nanded, Maharashtra. The research utilizes Data Envelopment Analysis (DEA) to compare the financial performance of sample MSMEs selectively using the suitable variables identified by Arasu et al. (2021). Findings suggest sharp differences in the financial performance of sample units. Inefficient units are suggested to improve their return on asset, return on capital employed, and net profit margin.
Vietnam's insurance market has grown rapidly in recent years and is expected to continue growing due to Vietnam's economic and demographic development. The market has been liberalized and now allows both domestic and foreign insurers. Foreign participation is increasing through joint ventures and acquisitions of domestic insurers. To further develop the insurance sector, Vietnam will restructure weaker insurers and classify all insurers into four groups based on their financial health. New regulations aim to improve insurer solvency and competitiveness. Foreign acquisitions of domestic insurers will be allowed up to 100% ownership of non-life insurers and subject to ownership caps for life insurers.
Predicting Corporate Failure - An Application of Discriminate Analysisscmsnoida5
Corporate failure is a serious problem being
confronted by the corporate world. This issue
has been a subject of intensive research and
discussion by economists, bankers, creditors,
equity shareholders, accountants, marketing
and management experts. The present study
aims at developing a model for prediction
of corporate failure on the basis of financial
ratios. The study is based on the data of
selected firms from chemical industry (with
equal number of failed and non failed firms).
The discriminant analysis has been used to
discriminate between failed and non failed
firms. It is concluded that some of the
financial ratios can significantly differentiate
between failed and non failed firms. The
finding will be useful for the banks and other
financial institutions in designing a suitable
credit appraisal and monitoring system for their
loans. This model could guide the policy makers
to prepare an early warning system to avoid
bankruptcy.
The credit insurance market in China report by daxue consulting asian risksDaxue Consulting
The document discusses the credit insurance market in China. It provides an overview of key drivers and players in China's credit insurance market. The market has grown due to increasing trade volumes and longer payment terms between Chinese companies. However, the market remains relatively underdeveloped compared to non-life insurance. Major players include Sinosure, which dominates the export credit insurance space, and CPIC, AIG, and Ping An which offer domestic and export credit insurance products. The government is taking steps to further regulate the industry and encourage its development.
The document analyzes the digital strengths, weaknesses, opportunities, and threats (SWOT) for the insurance industry. The key strengths are the large existing customer base and data assets. However, the industry is also old and people-driven, with complex products. Major opportunities lie in innovative digital products, financial inclusion, and automation. But the industry faces threats if it does not shift from risk indemnity to prevention, loses younger customer segments, and fails to leverage the value of data assets.
Impact of Web Advertisement on Customers Perception - A Case of Banking Sectorscmsnoida5
Nowadays a lot of innovative services are
offered by the financial service providers to their
customers. The use of more innovation in the
financial sector is the resultant of the day by day
advancement in the technology. Also customer
of today is well aware of the latest technology
and they demand their providers to execute
the technology for business prospective. Target
of all financial service providers’ advertisers
is to reach maximum customers. For this they
utilize every promotional and advertisement
channel so as to reach and inform maximum
public about their products. The purpose of
present study is to determine impact of web
advertisement on customer perception in case of
banking sector. The data will be collected from
200 approx respondents who are aware of the
web advertisements. The collected data will be
put in the Statistical Package for Social Sciences
(SPSS). Afterwards the regression analysis and
correlation analysis will be applied in order to
determine the impact of the web advertisement
on the purchase intention of the customers in
regards to the banking and investment products.
CBIZ Banking & Financial Services Quarterly Newsletter - Aug 2020CBIZ, Inc.
The August issue of CBIZ's Banking & Financial Services Newsletter includes a conversation with Lori Bettinger, Co-president of Alliance Partners and President of BancAlliance, on the banking sector and opportunity to make loans across other industry sectors. Also covered are underwriter questions to expect with your insurance renewal in this hard market and 8 potential COVID-19 employment liability claims. As always, links to several additional resources and webinars included.
Corporate Governance Practices of Indian Public Sector and Private Sector Ban...scmsnoida5
This study examines the differences in corporate governance practices between public sector banks and private sector banks in India. An assessment tool called the Corporate Governance Disclosure Index (CGDI) was used to analyze annual reports from 2002-2014 of top public and private sector banks. Statistical analysis found some significant differences between the two sectors. Private banks had stronger practices related to board structure and remuneration committees. Both sectors differed significantly in adopting non-mandatory recommendations, with private banks exceeding in compliance. However, there were no major differences found regarding transparency/disclosure practices and shareholders' rights. The study aims to compare governance quality between Indian public and private banks.
Public affairs round up - september 2014 - mslgroupAshraf Engineer
The document discusses India raising the foreign direct investment (FDI) cap in the insurance and defence sectors from 26% to 49%. This is expected to boost investment in these sectors and increase insurance penetration and domestic defence manufacturing. However, there are also concerns about foreign control and technology transfer. The defence sector in particular may see greater investment but investors will still want management control for technology transfer, which the 49% cap does not provide. Overall the changes aim to modernize these sectors but uncertainties around rules and implementation remain.
Insurance valuation in china by daxue consultingDaxue Consulting
The document provides information on asset valuation in the Chinese insurance market. It discusses the importance of accurate asset valuation for determining insurance premiums and payouts. Incorrect valuation can lead to underinsurance or overpayment of premiums. The document outlines various factors that influence asset values in China and introduces some of the main players providing valuation services, including international firm John Foord and domestic company Lixin Appraisal.
Business insurance market in China by daxue consulting and asian risksDaxue Consulting
The document discusses the business insurance market in China. It provides an overview of the most common insurance products for companies, including property, liability, credit, and employee insurance. It then examines the impact of COVID-19, noting increased health insurance sales but decreased accident insurance consumption. It profiles the three main players in the Chinese market - PingAn, PICC, and CPIC - and their different strategies. Finally, it focuses on the role of insurance brokers in offering customized solutions and representing clients' interests.
This document analyzes factors that affect dividend payout ratios using data from 38 companies in Pakistan from 2003-2011. It finds that liquidity, earnings per share, leverage, firm size are significantly related to dividend payout ratios across oil, cement, energy and sugar sectors. It also finds that dividend payout ratios are significantly related to future company growth. The study uses descriptive statistics, pooled least squares regression and examines variables like profitability, liquidity, leverage, growth and firm size on the dividend payout ratio.
Changing marketing trend of reliance life insurance (1)vaibhav003
The document provides information on the insurance industry in India and Reliance Life Insurance Company. It discusses the importance of insurance for the economy, the history and development of the insurance industry including key milestones and regulations. It also provides details on the present scenario, opportunities and challenges in the industry. Specifically for Reliance Life Insurance, it gives an overview of the company including its ownership and vision to offer integrated financial services.
An Empirical Study on Underwriting Risk of Insurance Companies in Bangladeshijtsrd
This document summarizes a study that examines the determinants of underwriting risk for insurance companies in Bangladesh from 2013 to 2017. It uses multiple linear regression analysis on 125 observations from general insurance companies to analyze the relationship between underwriting risk (measured by loss ratio) and various independent variables like firm size, capital level, GDP growth rate, liquid assets, and return on assets. The study finds that underwriting risk is significantly related to these factors. It aims to evaluate the risk-taking ability of insurance companies in Bangladesh and contribute to research on factors affecting their underwriting risk.
This document summarizes the different types of microinsurance products available in India. It identifies 4 main categories: 1) Products registered as microinsurance with IRDA, which are primarily sold by life insurers to rural customers. 2) Rural and social products not registered as microinsurance that make up the bulk of policies sold. 3) Community-based products developed in partnership with insurers that are more responsive to local needs. 4) Independent community microinsurance schemes run by health providers or mutuals that focus on specific regions. Overall, the document finds that while India has many microinsurance experiments, regulation has only addressed certain types of providers and more flexibility is needed to support diverse models.
The opening up of the Indian insurance market to private players, a little over five years ago, was heralded as a gold rush. This was despite government’s knee jerk approach to the liberalisation agenda and somewhat distorted roll out of events.
The takaful market has become more diverse with a tremendous increase in the
number of takaful operators worldwide. In overall, the growth of takaful has been
consistently increasing since 2010. Nevertheless, there is a slight difference between
family takaful and general takaful growth, unfavorably the family takaful. Thus, this
research is carried out to examine the significant factors influencing the choice of
family takaful among its participants. For that purpose, one takaful operator has been
sampled out. The findings relate to three contributing factors to the demand of family
takaful products; benefits, product features and quality services. Based on the
findings, takaful operator should focus in improving the takaful agents’ knowledge
Identity Management Reform and Fraud Prevention in the Nigerian Banking IndustryDr. Amarjeet Singh
This paper assesses the effect ofidentity management reform, namely the Bank verification number (BVN) policy on fraud prevention in the Nigerian banking industry. Using secondary data obtained from annual reports of Nigerian Deposit Insurance Corporation (NDIC) from 2011 to 2018, the study employed descriptive method to analyze trend in fraud variables before and after introduction of the policy and independent t-test to test the hypotheses in the study. Findings revealed that there was an initial decrease in number of staff involved and total amount involved in fraud in the two years following BVN introduction, but which showed increases thereafter.A similar trend was revealed in various fraud types with internet banking fraud showing significant increases in frequency of cases. The results from the t-tests revealed that theBVN policy had no significant impact on fraud prevention within the period under study. It was recommended that the banking public be educated on the different types of fraud and how to protect their personal details from getting into wrong hands. There is also the need to beef up security by improving on protocols required to carry out bank transactions particularly in the area of internet banking. It was also suggested that all bank account numbers be linked to the National Identity Number (NIN) immediately in line with proposals made by the Federal Government on identity management.
The insurance industry in Oman faces challenges including low penetration rates, an overcrowded market, and lack of awareness and quality manpower. However, compulsory medical insurance which is being considered could drive significant growth in the health insurance segment. While consolidation in the industry would be beneficial, cultural factors have prevented much merging of companies. Improving infrastructure, awareness, and the regulatory framework could help Oman's insurance industry realize its potential for further expansion.
Examining corporate reputation and commitment to business social responsibili...Alexander Decker
This document examines the relationship between corporate reputation, commitment to business social responsibility (BSR), and organizational performance in the manufacturing sector in Nigeria. It reviews literature on BSR, corporate reputation, and BSR commitment. The study aims to address gaps in previous research that focused mainly on developed countries and large firms. A conceptual framework is developed indicating relationships between the variables. Survey data from 248 manufacturing firms in Nigeria is analyzed to test the pathways in the framework. The results reveal a positive association between corporate reputation and organizational performance, but an insignificant relationship between commitment to BSR and organizational performance. This indicates that while BSR awareness exists, social concerns may not be fully committed to, especially in developing countries. Managerial and theoretical implications are
This document reports on a study that examined the effects of self-leadership, knowledge management, and organizational culture on creativity. The study collected data from 227 manufacturing organizations in Pakistan using surveys. Multiple regression analysis was used to test hypotheses. The results indicated that creativity is predicted by self-leadership and knowledge management. Additionally, the study found that self-leadership fully mediates the effect of organizational culture on creativity.
Determinants of employee retention in pakistan international airlinesAlexander Decker
This document discusses determinants of employee retention at Pakistan International Airlines (PIA). It identifies six variables that influence employee turnover intentions: career progression chances, incentive plans, work setting, supervisory support, work-life balance, and organizational prestige. The study found the greatest association between career progression chances and lower turnover intention. Associations were also found between the other five variables and lower turnover intentions. The document provides context on the importance of employee retention and an overview of its determinants like career development opportunities and support from supervisors.
An Investigation into the Financial Performance of Micro, Small and Medium En...Dr. Amarjeet Singh
Micro, small and medium enterprises (MSMEs) are an indispensable part of the Indian economy. In terms of Gross Value Added (GVA) and Gross Domestic Product (GDP), MSMEs accounted for about 33% and 31% of India's GVA and GDP, respectively, in the year 2019-20. Unlike large enterprises that are concentrated in the metros, MSMEs are spread across smaller and larger rural as well as urban centres of India. They are also the biggest source of employment, especially in rural India, and contribute to the rural development and industrialisation. MSMEs also act as a great social bridge as smaller enterprises are owned by socially backward classes and women than are larger enterprises. For these reasons and more, the India government has always promoted the growth and development of MSMEs through policy initiatives, technology up gradation, and via other means. Consequently, MSMEs have also grown in multi-folds in the past decades in terms of the number of enterprises in operation and the collective revenue of the sector. Several challenges affect the growth of MSMEs, however. One of these is the limited academic studies into the financial performance of MSMEs, probably due to the unavailability of adequate data. The present research attempts to fill this gap by conducting a financial performance evaluation of 51 sample MSMEs based in the district of Nanded, Maharashtra. The research utilizes Data Envelopment Analysis (DEA) to compare the financial performance of sample MSMEs selectively using the suitable variables identified by Arasu et al. (2021). Findings suggest sharp differences in the financial performance of sample units. Inefficient units are suggested to improve their return on asset, return on capital employed, and net profit margin.
Vietnam's insurance market has grown rapidly in recent years and is expected to continue growing due to Vietnam's economic and demographic development. The market has been liberalized and now allows both domestic and foreign insurers. Foreign participation is increasing through joint ventures and acquisitions of domestic insurers. To further develop the insurance sector, Vietnam will restructure weaker insurers and classify all insurers into four groups based on their financial health. New regulations aim to improve insurer solvency and competitiveness. Foreign acquisitions of domestic insurers will be allowed up to 100% ownership of non-life insurers and subject to ownership caps for life insurers.
Predicting Corporate Failure - An Application of Discriminate Analysisscmsnoida5
Corporate failure is a serious problem being
confronted by the corporate world. This issue
has been a subject of intensive research and
discussion by economists, bankers, creditors,
equity shareholders, accountants, marketing
and management experts. The present study
aims at developing a model for prediction
of corporate failure on the basis of financial
ratios. The study is based on the data of
selected firms from chemical industry (with
equal number of failed and non failed firms).
The discriminant analysis has been used to
discriminate between failed and non failed
firms. It is concluded that some of the
financial ratios can significantly differentiate
between failed and non failed firms. The
finding will be useful for the banks and other
financial institutions in designing a suitable
credit appraisal and monitoring system for their
loans. This model could guide the policy makers
to prepare an early warning system to avoid
bankruptcy.
The credit insurance market in China report by daxue consulting asian risksDaxue Consulting
The document discusses the credit insurance market in China. It provides an overview of key drivers and players in China's credit insurance market. The market has grown due to increasing trade volumes and longer payment terms between Chinese companies. However, the market remains relatively underdeveloped compared to non-life insurance. Major players include Sinosure, which dominates the export credit insurance space, and CPIC, AIG, and Ping An which offer domestic and export credit insurance products. The government is taking steps to further regulate the industry and encourage its development.
The document analyzes the digital strengths, weaknesses, opportunities, and threats (SWOT) for the insurance industry. The key strengths are the large existing customer base and data assets. However, the industry is also old and people-driven, with complex products. Major opportunities lie in innovative digital products, financial inclusion, and automation. But the industry faces threats if it does not shift from risk indemnity to prevention, loses younger customer segments, and fails to leverage the value of data assets.
Impact of Web Advertisement on Customers Perception - A Case of Banking Sectorscmsnoida5
Nowadays a lot of innovative services are
offered by the financial service providers to their
customers. The use of more innovation in the
financial sector is the resultant of the day by day
advancement in the technology. Also customer
of today is well aware of the latest technology
and they demand their providers to execute
the technology for business prospective. Target
of all financial service providers’ advertisers
is to reach maximum customers. For this they
utilize every promotional and advertisement
channel so as to reach and inform maximum
public about their products. The purpose of
present study is to determine impact of web
advertisement on customer perception in case of
banking sector. The data will be collected from
200 approx respondents who are aware of the
web advertisements. The collected data will be
put in the Statistical Package for Social Sciences
(SPSS). Afterwards the regression analysis and
correlation analysis will be applied in order to
determine the impact of the web advertisement
on the purchase intention of the customers in
regards to the banking and investment products.
CBIZ Banking & Financial Services Quarterly Newsletter - Aug 2020CBIZ, Inc.
The August issue of CBIZ's Banking & Financial Services Newsletter includes a conversation with Lori Bettinger, Co-president of Alliance Partners and President of BancAlliance, on the banking sector and opportunity to make loans across other industry sectors. Also covered are underwriter questions to expect with your insurance renewal in this hard market and 8 potential COVID-19 employment liability claims. As always, links to several additional resources and webinars included.
Corporate Governance Practices of Indian Public Sector and Private Sector Ban...scmsnoida5
This study examines the differences in corporate governance practices between public sector banks and private sector banks in India. An assessment tool called the Corporate Governance Disclosure Index (CGDI) was used to analyze annual reports from 2002-2014 of top public and private sector banks. Statistical analysis found some significant differences between the two sectors. Private banks had stronger practices related to board structure and remuneration committees. Both sectors differed significantly in adopting non-mandatory recommendations, with private banks exceeding in compliance. However, there were no major differences found regarding transparency/disclosure practices and shareholders' rights. The study aims to compare governance quality between Indian public and private banks.
Public affairs round up - september 2014 - mslgroupAshraf Engineer
The document discusses India raising the foreign direct investment (FDI) cap in the insurance and defence sectors from 26% to 49%. This is expected to boost investment in these sectors and increase insurance penetration and domestic defence manufacturing. However, there are also concerns about foreign control and technology transfer. The defence sector in particular may see greater investment but investors will still want management control for technology transfer, which the 49% cap does not provide. Overall the changes aim to modernize these sectors but uncertainties around rules and implementation remain.
Insurance valuation in china by daxue consultingDaxue Consulting
The document provides information on asset valuation in the Chinese insurance market. It discusses the importance of accurate asset valuation for determining insurance premiums and payouts. Incorrect valuation can lead to underinsurance or overpayment of premiums. The document outlines various factors that influence asset values in China and introduces some of the main players providing valuation services, including international firm John Foord and domestic company Lixin Appraisal.
Business insurance market in China by daxue consulting and asian risksDaxue Consulting
The document discusses the business insurance market in China. It provides an overview of the most common insurance products for companies, including property, liability, credit, and employee insurance. It then examines the impact of COVID-19, noting increased health insurance sales but decreased accident insurance consumption. It profiles the three main players in the Chinese market - PingAn, PICC, and CPIC - and their different strategies. Finally, it focuses on the role of insurance brokers in offering customized solutions and representing clients' interests.
This document analyzes factors that affect dividend payout ratios using data from 38 companies in Pakistan from 2003-2011. It finds that liquidity, earnings per share, leverage, firm size are significantly related to dividend payout ratios across oil, cement, energy and sugar sectors. It also finds that dividend payout ratios are significantly related to future company growth. The study uses descriptive statistics, pooled least squares regression and examines variables like profitability, liquidity, leverage, growth and firm size on the dividend payout ratio.
Changing marketing trend of reliance life insurance (1)vaibhav003
The document provides information on the insurance industry in India and Reliance Life Insurance Company. It discusses the importance of insurance for the economy, the history and development of the insurance industry including key milestones and regulations. It also provides details on the present scenario, opportunities and challenges in the industry. Specifically for Reliance Life Insurance, it gives an overview of the company including its ownership and vision to offer integrated financial services.
An Empirical Study on Underwriting Risk of Insurance Companies in Bangladeshijtsrd
This document summarizes a study that examines the determinants of underwriting risk for insurance companies in Bangladesh from 2013 to 2017. It uses multiple linear regression analysis on 125 observations from general insurance companies to analyze the relationship between underwriting risk (measured by loss ratio) and various independent variables like firm size, capital level, GDP growth rate, liquid assets, and return on assets. The study finds that underwriting risk is significantly related to these factors. It aims to evaluate the risk-taking ability of insurance companies in Bangladesh and contribute to research on factors affecting their underwriting risk.
This document summarizes the different types of microinsurance products available in India. It identifies 4 main categories: 1) Products registered as microinsurance with IRDA, which are primarily sold by life insurers to rural customers. 2) Rural and social products not registered as microinsurance that make up the bulk of policies sold. 3) Community-based products developed in partnership with insurers that are more responsive to local needs. 4) Independent community microinsurance schemes run by health providers or mutuals that focus on specific regions. Overall, the document finds that while India has many microinsurance experiments, regulation has only addressed certain types of providers and more flexibility is needed to support diverse models.
The opening up of the Indian insurance market to private players, a little over five years ago, was heralded as a gold rush. This was despite government’s knee jerk approach to the liberalisation agenda and somewhat distorted roll out of events.
The takaful market has become more diverse with a tremendous increase in the
number of takaful operators worldwide. In overall, the growth of takaful has been
consistently increasing since 2010. Nevertheless, there is a slight difference between
family takaful and general takaful growth, unfavorably the family takaful. Thus, this
research is carried out to examine the significant factors influencing the choice of
family takaful among its participants. For that purpose, one takaful operator has been
sampled out. The findings relate to three contributing factors to the demand of family
takaful products; benefits, product features and quality services. Based on the
findings, takaful operator should focus in improving the takaful agents’ knowledge
Identity Management Reform and Fraud Prevention in the Nigerian Banking IndustryDr. Amarjeet Singh
This paper assesses the effect ofidentity management reform, namely the Bank verification number (BVN) policy on fraud prevention in the Nigerian banking industry. Using secondary data obtained from annual reports of Nigerian Deposit Insurance Corporation (NDIC) from 2011 to 2018, the study employed descriptive method to analyze trend in fraud variables before and after introduction of the policy and independent t-test to test the hypotheses in the study. Findings revealed that there was an initial decrease in number of staff involved and total amount involved in fraud in the two years following BVN introduction, but which showed increases thereafter.A similar trend was revealed in various fraud types with internet banking fraud showing significant increases in frequency of cases. The results from the t-tests revealed that theBVN policy had no significant impact on fraud prevention within the period under study. It was recommended that the banking public be educated on the different types of fraud and how to protect their personal details from getting into wrong hands. There is also the need to beef up security by improving on protocols required to carry out bank transactions particularly in the area of internet banking. It was also suggested that all bank account numbers be linked to the National Identity Number (NIN) immediately in line with proposals made by the Federal Government on identity management.
The insurance industry in Oman faces challenges including low penetration rates, an overcrowded market, and lack of awareness and quality manpower. However, compulsory medical insurance which is being considered could drive significant growth in the health insurance segment. While consolidation in the industry would be beneficial, cultural factors have prevented much merging of companies. Improving infrastructure, awareness, and the regulatory framework could help Oman's insurance industry realize its potential for further expansion.
Examining corporate reputation and commitment to business social responsibili...Alexander Decker
This document examines the relationship between corporate reputation, commitment to business social responsibility (BSR), and organizational performance in the manufacturing sector in Nigeria. It reviews literature on BSR, corporate reputation, and BSR commitment. The study aims to address gaps in previous research that focused mainly on developed countries and large firms. A conceptual framework is developed indicating relationships between the variables. Survey data from 248 manufacturing firms in Nigeria is analyzed to test the pathways in the framework. The results reveal a positive association between corporate reputation and organizational performance, but an insignificant relationship between commitment to BSR and organizational performance. This indicates that while BSR awareness exists, social concerns may not be fully committed to, especially in developing countries. Managerial and theoretical implications are
This document reports on a study that examined the effects of self-leadership, knowledge management, and organizational culture on creativity. The study collected data from 227 manufacturing organizations in Pakistan using surveys. Multiple regression analysis was used to test hypotheses. The results indicated that creativity is predicted by self-leadership and knowledge management. Additionally, the study found that self-leadership fully mediates the effect of organizational culture on creativity.
Determinants of employee retention in pakistan international airlinesAlexander Decker
This document discusses determinants of employee retention at Pakistan International Airlines (PIA). It identifies six variables that influence employee turnover intentions: career progression chances, incentive plans, work setting, supervisory support, work-life balance, and organizational prestige. The study found the greatest association between career progression chances and lower turnover intention. Associations were also found between the other five variables and lower turnover intentions. The document provides context on the importance of employee retention and an overview of its determinants like career development opportunities and support from supervisors.
11.a study of talent management as a strategic tool for the organization in s...Alexander Decker
This document discusses talent management as a strategic tool for organizations in selected Indian IT companies. It provides background on talent management, noting that effective talent management has been identified as a top priority for global CEOs. The document then reviews relevant literature on talent management strategies. It outlines the objectives, scope, hypotheses and research methodology of the study, which involved analyzing talent management processes at two Indian IT companies (Infosys and Tech Mahindra) through surveys. The findings suggest that the companies have talent-specific initiatives and view organizational culture and rewards as important for attracting and retaining talent. The conclusion is that by implementing an effective talent management strategy using integrated data and processes, organizations can help ensure they have the right people in the right roles
Customer emotions in strengthening relationship with service providerAlexander Decker
This document discusses the relationship between employee satisfaction/commitment, customer emotions, and customer retention with a service provider. It aims to examine how customer emotions may mediate the impact of employee factors on the strength of the customer relationship. The literature review discusses how emotions influence behavior and decision-making. Previous research has looked at the links between employee and customer satisfaction/loyalty but not considered the role of customer emotions. The study aims to address this gap by exploring how customer positive or negative emotions may impact the effect of employee commitment and satisfaction on long-term customer stability with the service provider.
To stay or not to stay can organizational culture provide the staying powerAlexander Decker
This study investigated the influence of organizational culture on employee retention in the Ghanaian banking sector. A survey was administered to 301 employees from 4 banks. The study found that organizational culture significantly predicted employee retention, with innovative culture accounting for the greatest variance. Community and bureaucratic cultures also significantly predicted retention, while competitive culture did not. The findings suggest that cultures emphasizing innovation, community, and bureaucracy best promote employee retention in Ghanaian banks.
The article sought to review the contemporary challenges and their policy interventions in the Kenyan insurance industry in terms of the external and internal challenges affecting the insurance business and which require leadership and managerial actions. The researcher reviewed the contemporary challenges and the performance of insurance companies in Kenya by looking at the external business environmental challenges and how they affect the management of Insurance companies. Secondly, the study considered how Kenyan insurance companies adapt and adjust their internal practices and processes to satisfy the changing customer expectations. The article goes further to review the critical policy issues which are required to address: changing consumer dynamics, enforce strict compliance with the stringent regulations, constant product innovations, and greater need for communication, technological disruptions, on-demand marketplace, and compensation. Using peer-reviewed literature and the published integrated annual reports of Jubilee Insurance Company Ltd; the study discussed and highlighted the policy interventions in relation to the demands of business and customers. Using Jubilee Insurance as a model insurance company in a case study, the researcher found that by combining performance driven behaviour and regular use of management control systems, Insurance Companies were able to post improved results. The Choice of Jubilee was driven by its size and stability among the Kenyan insurance companies. Jubilee has adopted an integrated reporting system which enabled the researcher to obtain the empirical information required from a secondary source. The researcher reviewed the data from the company’s integrated annual reports for the ten years from 2007 to 2017. The study looked at the control systems, including informal and formal controls and subjected these controls to a more comprehensive analysis to establish the impact of management control systems and strategy on the insurance company performance. The study suggested further empirical research to find the linkage between the policy interventions to various challenges and the performance of the insurance companies in Kenya.
Effects of corporate governance on financial performance of listed insurance ...Alexander Decker
This document discusses a study that investigated the effects of corporate governance on the financial
performance of listed insurance companies in Kenya. Specifically, it examined the impact of board size, board
composition, CEO duality, and leverage. The study found that board size was negatively related to financial
performance, while board composition, separation of the CEO and chair roles, and leverage were positively
related to financial performance. Good corporate governance is important for firm success and the economic
well-being of Kenya, but governance practices need further improvement in the country's insurance industry.
Analysis the performance of life insurance in private insuranceAlexander Decker
The document analyzes the performance of life insurance in the Nile Insurance Company in Ethiopia over 4 years from 2003-2007. It finds that while gross and net written premiums increased overall, the rate of growth fluctuated due to unhealthy competition. It also finds that while the company offered new life insurance products, revenue was highly concentrated in a few classes. Premiums and claims were not proportionally distributed across classes. The study concludes that there is a direct correlation between premium collection and claim payments, with classes generating more premiums also incurring higher claims.
Analysis the performance of life insurance in private insuranceAlexander Decker
The document analyzes the performance of life insurance in the Nile Insurance Company in Ethiopia over 4 years from 2003-2007. It finds that while gross and net written premiums increased overall, the rate of growth fluctuated due to unhealthy competition. It also finds that while the company offered new life insurance products, revenue was highly concentrated in a few classes. Premiums and claims were not proportionally distributed across classes. The study concludes that there is a direct correlation between premium collection and claim payments, with classes generating more premiums also incurring higher claims.
Age of the publication firm as a factor influencing capital structure of insu...Gerishom Wafula Manase
Capital structure refers to the combination of debt and equity capital a firm uses to finance its long term operations. The capital structure decision can affect the value of the firm by changing the firm’s expected earnings, its cost of capital or both. One of the most important objectives of determining an optimal capital structure of the firm is to ensure the lowest cost of capital and to maximize shareholders wealth. This paper is on age as a factor affecting capital structure in the insurance sector companies. This study sought to establish the influence of age as a factor of capital structure of the insurance companies in Kenya. The study focused on the entire population of the registered insurance companies listed in the Nairobi Securities Exchange in Kenya. Expectedly, the result of the study is sufficient to give an insight into how age of insurance company influences its capital structure among the listed insurance companies in the Nairobi Securities Exchange in Kenya. This study employed univariate analysis to measure the impact of This factor on the company’s capital structure. The findings established a co efficient of correlation of 0.809 and a regression of 0.65 indicating a strong relation between age and the capital structure of insurance companies
This document discusses a study on the attitudes of consumers and the effect on life insurance companies. It analyzes how customer service and satisfaction impact customer attitudes. The study examines 150 insurance customers in Lucknow, India. It finds that meeting rising customer expectations through initiatives like CRM is important for retention. However, customer acquisition is also vital for growth. The competitive environment makes it difficult for insurance companies and agents to gain profits while reducing costs. The study aims to understand the effect of insurance intermediaries and services on customer attitudes and investment decisions. It uses surveys and statistical analysis to test hypotheses about these relationships.
This document summarizes a journal article that investigates strategies for improving public perception of life insurance policies in Nakuru Municipality, Kenya. The study found that public perception of life insurance companies in Kenya remained low, based on opinions from insurance agents and teachers surveyed. However, the study revealed that there was a significant relationship between communication strategies used by insurance companies, their ethical practices, level of community involvement, and improved public perception. Adopting effective communication strategies, maintaining strong ethical practices, and increasing involvement in the community could help life insurance companies in Kenya improve their public perception over time.
Determinants of capital structure of insurance companies in ghanaAlexander Decker
This research paper examines the determinants of capital structure for insurance companies in Ghana using financial data from 12 insurance companies over 2002-2007. The study finds support for both the static trade-off theory and pecking order theory in explaining capital structure. Firm size, profitability, and growth were statistically significant determinants of leverage. Larger, more profitable companies used less debt, while growing companies used more debt. The paper provides context on the insurance industry in Ghana and reviews theories of capital structure.
A Study Of Comparative Analysis Between LIC And HDFC Life Insurance CompaniesNatasha Grant
This document compares the performance of Life Insurance Corporation of India (LIC) and HDFC Life Insurance Company. It analyzes data on their total premium, total income, and number of policies from 2014-2019. The data shows that LIC's total premium and total income were significantly higher than HDFC's over this period. However, HDFC saw steady growth, with its premium and income increasing each year. The document also provides background on the growth of India's insurance industry since it was opened to private companies in 2000. It aims to help understand the competitiveness of the two leading players, LIC and HDFC, in the current insurance sector.
Influence of Product Planning Strategies on Sales of Insurance Products: A Ca...paperpublications3
Abstract: Insurance industry in Kenya has faced numerous challenges from the volatile market environment, high interest rate to encroachment of the market by foreign insurance firms with the resultant liquidity crunch, decline in the stock market, heightened inflation, depreciation of the Kenya shilling and insecurity mostly from emerging terrorism. The poor performance was manifested in the numerous profit declines. Global insurance industry emerged from the combination of financial turmoil and economic uncertainty of the economic meltdown in 2014. In Asia-Pacific, rising individual wealth and aging populations are influencing revenue growth. Latin America continued to offer substantial growth potential to insurers. In the United States, Europe and Canada, many insurers have rebuilt their capital positions hence poised for growth. The purpose of the study was to establish influence product planning strategies (PPS) on sales of insurance products / services and to suggest specific recommendations to make positive improvement. Case of Pan Africa Insurance Holding Limited (PAIHL) in Kisumu. The study was guided by the following specific objectives: i) establishing influence of market penetration, ii) market development, iii) product development and iv) product diversification on sales of insurance products / services. The target population was 200 respondents comprising of 100 PAIHL staff and 100 PAIHL customers. Sample size was 132 respondents of which 66 were PAIHL staff and 66 were PAIHL customers. The study enabled PAIHL and other insurance companies to appreciate the significance of product planning strategies. It was demonstrated how PPS enhanced sales. The study also formed a basis for further research. This study used questionnaires and interview schedules to obtain data. Stratified and simple random sampling techniques were also used to sample the respondents. The questionnaires were tested on a sample of respondents to check on their reliability and validity. Data was analyzed using descriptive and inferential statistics. The study found out that product planning strategies increased products / services competitiveness, market share, sales volume and customer satisfaction. Based on the finding, the study concluded that product planning strategies played a vital role in products / services competitiveness, increased market share, increased sale volume, and increased customer satisfaction.
The insurance companies have to ensure quality products at a competitive price. Companies can
lower the price of the product by reducing the cost. Their survival depends upon their policy-holders. The
policy-holders become confident of not losing much when an accident or uncertainty takes place. On the
report of the insured about an accident the company officials send surveyors to assess the loss caused to
the policy-holders. However, as several of the insurance providers are international companies having
made their presence felt in several countries, the service provided by them is a reflection of the experience
gained by them across the globe, and in that sense, the findings may be generalised to a great extent.
The insurance companies have to ensure quality products at a competitive price. Companies can
lower the price of the product by reducing the cost. Their survival depends upon their policy-holders. The
policy-holders become confident of not losing much when an accident or uncertainty takes place. On the
report of the insured about an accident the company officials send surveyors to assess the loss caused to
the policy-holders. However, as several of the insurance providers are international companies having
made their presence felt in several countries, the service provided by them is a reflection of the experience
gained by them across the globe, and in that sense, the findings may be generalised to a great extent.
This document discusses the importance of intellectual capital and innovation in the agricultural insurance sector. It begins by outlining the importance of insurance services for agricultural producers and sectors. Intellectual capital is defined as the knowledge, skills, and experiences of employees, while innovation refers to new processes, services, marketing methods, and organizational changes. The relationship between intellectual capital and innovation is then explored, finding they have a reciprocal relationship that can boost company performance. Specifically within insurance companies, intellectual capital and innovation are crucial assets that allow companies to develop new services, gain competitive advantages, and better serve customer needs. Overall, the document argues that effectively managing intellectual capital and fostering innovation are important for the success and sustainability of agricultural insurance companies.
The Imperative of Insurance Companies and the Industry’s Development in Nigeriaijtsrd
The purpose of this study was to investigate the Imperative of Insurance Companies and the Industries Development in Nigerian. To carry out the study effectively, we studied ten Insurance Companies in Nigeria, their trends in the structure of insurance companies, the structure and growth in the companies, type of Ownership and the paid up capital of the insurance Industry, Premium Income and the number of Insurance Companies, Assets of the Insurance Company and the type of Business undertaken, and the investment patterns of the Insurance companies, which serve as the measures of variables in the study. Questionnaires were designed to obtain the primary data for the study. The Analysis of Variance ANOVA , Statistical Techniques were used to analyse and test the significance of data collected. The results of the analysis revealed that there is a positive difference between type of ownership and paid up capital of the Insurance Companies that a significant difference exists between the Premium Income and the number of Insurance Companies in Nigeria that the assets of the Insurance Companies and the type of business undertaken by them have no significant differences and finally, there is also a significant difference in the Investment patterns and the type of business undertaken by the Insurance Industry. The implication of the study led to the recommendation that the Government and society should design policies and programmes that could stem the evil practices prevalent in the Insurance Companies as it does have a favourable impact on the Industry’s development in Nigeria. Dr. Odogu Laime Isaac | Disu Babatunde Sulaiman "The Imperative of Insurance Companies and the Industry’s Development in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd58571.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/58571/the-imperative-of-insurance-companies-and-the-industry’s-development-in-nigeria/dr-odogu-laime-isaac
Impact on Employee Outreach and People Processes | EY IndiaEYIndia1
The document summarizes how insurance companies in India have adapted to employees working from home during the COVID-19 pandemic. It discusses how companies ensured their employees had proper digital infrastructure to work remotely, such as providing laptops, internet access, and virtual meeting tools. It also addresses the impact on employee outreach and processes, including initiatives to check on employee well-being, provide training, and boost morale. While productivity has increased in some cases, challenges include fear and anxiety from the pandemic situation as well as ensuring data security and productivity with remote work.
This document discusses HDFC Standard Life Insurance Company and its products. It provides an overview of HDFC Standard Life, highlighting its strengths such as financial expertise, range of solutions, and track record. It then discusses the company's major individual and group products. For individual products, it outlines various term plans, investment plans like single premium whole of life plans, pension plans, and savings plans. The group products section is not included in this summary as it was not part of the given document. The document provides details about HDFC Standard Life's product portfolio and solutions.
The study investigates the impact of risk management on performance of insurance companies. The research was done in Nairobi, in particular AIG insurance company where most of the respondent’s work. AIG have made investments in personnel, processes and technology to help control business risk. Historically, these risk investments have focused primarily on financial controls and regulatory compliance. The objectives of this study were aimed at knowing the impact of risk management on performance of insurance companies. Random sampling was used to select fifty one respondents. The research instruments majorly used included a set of questionnaires; for the respondents. The data collected has been presented using descriptive techniques and especially frequency distribution tables, pie charts and bar graphs. The findings of the study reveal that on operational risk management the underlying causes of operational risk losses are not always initially observable. It can be difficult to uncover the exact chain of events that led to the occurrence of the loss. In addition, one cause might be linked to more than one event or one event may have multiple causes (eg cascading control failures), resulting in different types of losses that could be covered by different insurance policies. On governance risk management through training and related activities aimed at building aimed at building awareness of the importance of ERM, roles and responsibilities and value to be derived from ERM. These results point to appropriate focus on risk governance since relevant, on time information risk and responsibilities. Reduced enterprise IT support / budgets and increased ease of technology deployments has led to multiple “shadow IT” organizations within enterprises. Shadow groups tend to not follow established control procedures. On strategic risk management, boards are seeing rapid increases both in the speed with which risk events take place and the contagion with which they spread across different categories of risk. They are especially concerned about the escalating impact of ‘catastrophic’ risks, which can threaten an organisation’s very existence and even undermine entire industries.
This study will help analyze the Recitation of the two types of insurance companies
and to take remedial measures in the sphere of their insurance products. Today, in this
liberalized world, in order to sustain good Recitation, the insurance companies have to ensure
quality products at a competitive price. Companies can lower the price of the product by
reducing the cost. Their survival depends upon their policyholder policyholder’s recitation of
public and private sector general insurance industry in Structural Equation Model (SEM)
approach in the chosen study area. The study has to evaluate the policyholder’s perception
towards non-life insurance industry.
This study will help analyze the Recitation of the two types of insurance companies
and to take remedial measures in the sphere of their insurance products. Today, in this
liberalized world, in order to sustain good Recitation, the insurance companies have to ensure
quality products at a competitive price. Companies can lower the price of the product by
reducing the cost. Their survival depends upon their policyholder policyholder’s recitation of
public and private sector general insurance industry in Structural Equation Model (SEM)
approach in the chosen study area. The study has to evaluate the policyholder’s perception
towards non-life insurance industry.
Similar to 10 bernard factors influencing --94-110 (20)
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
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Factors Influencing Agents Retention In Insurance Industry: A
Survey Of Selected Insurance Companies In Nairobi (Kenya).
Omboi Bernard Messah (corresponding author)
School of Business & Management Studies
Kenya Methodist University
P O box 267-60200, Meru -Kenya
Tel: +254 724770275 E-mail: messahb@yahoo.co.uk
Polycarp Koome Kubai
P.O Box 303664-0100
Nairobi-Kenya
Tel: +254725147947email: koomepoly@yahoo.com
Abstract
Life insurance industry has been suffering for a long time now from high rate of turnover of the agents.
Therefore this study was intended to establish the factors that are influencing agents’ retention within the
major insurance companies in Nairobi. The study focused on the selected assurance companies in Nairobi
on the bases of the volume of business reported in the three selected companies as opposed to the small
volume of business which is reported weekly by the up country agencies of the same companies.
The study focused on the three major life assurance companies in Kenya following the AKI 2011
insurance companies positioning. The study concentrated on British America Investment Company
founded in 1920, Pan Africa life assurance founded in 1945 and CFC life founded in 1964 as ALICO
(American Life Insurance Company).
The Main objective of this study was to establish the factors influencing agents’ retention in the insurance
industry with great emphases on Life insurance. The study was guided by six specific objectives, namely
the social demographics influence, influence of product knowledge, the influence of working conditions,
influence of resourcing strategies, influence remuneration mode and the influence of training and
development. The study used a descriptive survey design. The study employed descriptive analysis
technique on both primary and secondary data. To collect primary data, a set of questionnaires were
administered to the agents from the selected major insurance companies in Nairobi. The target population
of study was the agents working in the agencies of BRITAK, Pan Africa Life and CFC Life Assurance
Company in Nairobi. The sample population for the study consisted of 129 respondents selected from the
target population of 1000 possible respondents using stratified random sampling. The data was
collected using the drop and pick method. The respondents filled the questionnaires at their convenient
time. The study employed descriptive analysis technique on both primary and secondary data.
From the findings, the study established that, use of commissions as a mode of remunerating agents,
working conditions does not influence retention of agents negatively however training and development,
social demographic, product knowledge and resourcing strategies were found out to be key factors
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influencing the retention of agents negatively. The study therefore recommends that for the insurance
industries use more resources in training and developing their agents and also improve on the resourcing
strategies.
Keywords: Agents Retention; Insurance Industry; Working Condition; Remuneration
Abbreviations
AKI : Association of Kenyan insurance.
BRITAK : British American insurance company
LIMRA : Life insurance management research association.
IRA : Insurance Regulatory Authority
1.0 Introduction
1.1 Background of the Study
Insurance is broad with great economic force in the entire world. Inwin, (2002). As much as there are
two main categories of businesses carried under insurance industry the researcher concentrated on life
assurance, with special interest on the factors influencing retention of agents in insurance in the industry.
According to Bakos (2008) one of these factors influencing the rate of retention of agents is heavily
affected by use of commissions as a mode of remuneration unlike the convention form of reward or rather
remuneration by salary.
According to Christopher (2007) insurance agents are the sales representatives of insurance companies
who earn commissions from their sale of insurance products. LIMRA (2008) notes that, Commission is
the core motive and pivot which propels insurance sales representatives to work hard to earn their living.
However there have been various problems in the field as far as personal development, personal sales
volumes and retention of agents in the industry. Stevens (2008) and LIMRA (2010) agree that the
turnover rate in the industry is one of the highest and alarming.
LIMRA (2009) points out that, It has been of great concern to many managers, the fact that many sales
representatives who join the industry and become successful out of 100% who are recruited in the sales
force only 5% remain in the industry and become successful sales representatives ,out of 5% only 2%
become high achievers in the industry Despite the fact that those on commissions earn more than majority
of the salaried people, it has remained a very challenging field especially for the young people from
college and university who would wish to earn good money easily and fast. Burand (2010) notes that
over time, agents retention in the life insurance industry remains a perennial challenge for companies
operating within the traditional career agency system. According to LIMRA (2010), 68% of agents leave
companies within their first two years.
In 2005, the four-year agent retention rate was 14% with a total annual turnover rate of 31% (Annual
Agent Production and Survival Survey, 2008). Although this retention Percentage did increase in 2005,
over the past 20 years, agent retention has been unable to dramatically increase.
Many managers presuppose that retention rates correspond with a company’s effectiveness in building its
sales and Organization in general. Company “bottom lines” would benefit substantially from increased
retention rates. Calder (2009) However, this problem has endlessly been a throbbing headache to
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numerous assurance companies without any foreseen solution. This is the main focus of the researcher to
unearth the way forward out of the situation and give the necessary recommendations.
Companies are losing money because it takes an enormous amount of resources to recruit, hire and train
new agents. LIMRA (2009), estimates that it costs anywhere from $65,000 to $215,000 to develop a new
agent through the first three years of his or her Career.
According to Kenya Association of Insurers (2008) journal, over 50,000 agents were recruited in
insurance companies in Kenya Since then that number has dropped by 40%. While declining numbers
could be a result of sales managers looking for quality over quantity, retention rates have not seen a
dramatic increase since then.
Better understanding of leadership, organizational structures and management techniques are the vital
elements which are sighted, by (Churchill, 2008).
Cravens (2010) points out that, life insurance industry can be a difficult business to get started in, but with
the right tools and training a person can become successful at selling life insurance products. The first few
years as a new agent can be the toughest. If agents could be properly coached and supported during this
period, retention rates would improve. Furthermore, the life insurance industry is a social business where
agents and producers can learn from one another. Having a new agent shadowed by a more experienced
one could be one key to improving the new agents experience on knowing what it is like being a producer
LIMRA, (2008) this way of helping the new agents in the field seems to have faded recently. Having a
mentor can create a sense of safety and reliability in a new agent because they would have someone go to
with questions and concerns. (Dubinsky, 2008)
1.2 Statement of the problem
Insurance industry has been characterized by huge losses due to high rate of turnover among the new
agents especially the four-year agents. These are the sales representatives who have been with the
company for less than four years. Annual report published by LIMRA international in 2004 pointed out
that four year agents’ retention has not been able to move above 13 percents. This translates to 87 percent
of the new agents in the insurance industry leaving their respective companies within the first four years
of signing the contract.
An agent in the insurance industry especially life insurance starts becoming profitable only after the third
year of their contract in the company. This implies that most of the insurance companies have been
incurring huge losses since the retention rate of the new agents has continuously been poor. Insurance
agents’ retention has become a matter of concern as the Association of Kenya Insurers (AKI) highlighted
in the 2011 report concerning developments of the tied agents in the insurance industry in Kenya.
AKI report (2010) observed that lack of personal development of many sales persons who join
insurance industry is a subject worthy being given due consideration if the industry is to remain relevant
in the country, lack of personal development among the agents has been cited as the key pointer to the
impact of agents retention in the industry. These state affairs made this study relevant in the field of
insurance since the problem of retention requires agent attention.
1.3 General objective
The purpose of this study was to determine the factors influencing agents’ retention in the insurance
industry. A survey of major selected assurance companies in Nairobi.
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1.3.1 Specific Objectives
The following specific objectives will guide the study
1. To establish whether social demographics have influence on the retention of agents.
2. To establish the relationship between the mode of remuneration and the retention of agents.
3. To establish the relationship between resource strategies and agents retention.
4. To establish the relationship between product knowledge and the retention of agents.
5. To establish the relationship between agents’ working conditions and the retention of the agents.
6. To establish whether training and development has influence on the agents retention.
1.3.2 Research Questions
i. What is the relationship between social demographics and the retention of agents in the assurance
industry in Nairobi?
ii. What is the relationship between the mode of remuneration and the retention of agents?
iii. What is the relationship between resource strategies and the retention of agents in assurance industry in
Nairobi?
iv. What is the relationship between product knowledge and the retention of agents in assurance industry in
Nairobi?
v. What is the relationship between working conditions and the retention of agents in the assurance industry
in Nairobi?
vi. What is the relationship between training and development and the retention of agents in assurance
industry in Nairobi?
1.4 Scope of the Study
The study concentrated on the agents of the selected major insurance company in Nairobi based on the
criteria used by AKI to grade insurance companies. The Researcher settled on Nairobi as the area of study
due to the volume of business which is transacted by the agents working within Nairobi as opposed to
small volume of business the agents working in the upcountry acquire.
2.0 Literature review
2.1.1 Theoretical Review
2.1.1.1 Definition of Insurance
In Law and economics insurance is a form of risk management primarily used to hedge against the risk of
a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one
entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured, or
policyholder, is the person or entity buying the insurance policy. The insurance rate is a factor used to
determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk
management, the practice of appraising and controlling risk, has evolved as a discrete field of study and
practice.
The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of
payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the
case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which
details the conditions and circumstances under which the insured will be financially compensated.
(Anderson, 1987)
2.1.2 An insurance agent
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According to Independent insurance Agents of America (IIAA) (2009) an agent is a person who performs
services for another person or an organization under an express or implied agreement and who is subject
to the other’s control or right to control the manner and means of performing the services. The other
person is called a principal. Rosenberg (2004) expresses the same opinion in different words by saying
that, Insurance agents are sometimes referred the as insurance sales agents whose main obligation is to
help clients choose insurance policies that suite their needs.
There are two types of agents as classified by LIMRA (2007), some agents are captive agent s who
mainly work for an insurance company and only sell that companies’ products, the other category of
agents are those who work for various insurance companies and sell insurance products for many
insurance companies.
2.1.3 Qualification for becoming an Insurance agent
Frankas (2010) eludes that, For Insurance sales agents, job, most companies and independent agencies
prefer to hire college graduates-especially those who have majored in business or economics, high school
graduates are occasionally hired if they have proven sales ability or have been successful in other type of
work. In fact, many entrants to insurance sales agent jobs transfer from other occupations.
According to LIMRA (2007), College training may help agents grasp the technical aspects of insurance
policies and fundamentals and procedures of selling insurance. As per the recommendation of AKI
(Association of Kenya Insurers) regulations, every insurance agent must have done C.O.P (Certificate of
proficiency in insurance) which is a proficiency certificate to transact insurance business in Kenya.
Various employers are also placing greater emphasis on continuing professional education as the diversity
of financial products sold by insurance agent’s increases. (Holt, 2010).
An Insurance sales agent who shows ability and leadership may become a sales manager in a local office.
As noted by U.S Bureau of Labor statistics (2010) a few advance to agency manager. However, many
agents who have built up good clientele prefer to remain a sales work some particularly in the property
and casually field-establish their own independent agencies or brokerage firms.
2.1.4 Resourcing strategies
George (1990) has pointed out that before selecting an agent there has to be a great process than just
interview. He asserts that pre-hire assessment like testing and call center simulations have become
essential tool in the industry.
Tett (2000) of employment Technologies Corporation says that, for the insurance industry to succeed in
improving agents retention there has to be simulation centers where the applicants would be given the
opportunity to experience what they expect to find in the field and how sales are like.
According to Ashly (2000) it is good to control; the flow of less-interested candidates before they reach
the interview stage. Sometimes the applicant knows better than the hiring specialist that he or she is not
the right sampling the job. Tom (2009), and Peter (1999) agree that accepting agents without checking
their interests in the initial selection stage leads to poor retention of the agents. Nevertheless Srivivas
(2003) warns against relying too heavily on the simulation. He says that simulation can be very effective
for providing people with some exposure to what the job is likely to be. On the same note Banks (2010)
disputes the other authors by pointing out that simulation are too artificial such that good candidates get
left behind because they do poor simulations Wright (1992) asserts that simulation is only good to give a
job presentation. The Agency must be antecedently given or subsequently adopted; and in the latter case
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there must be an act of recognition or acquiescence in the act of the agent, from which recognition may be
fairly implied.
2.1.5 Working condition of insurance agents
According to Robinson (2002) agents have a noble duty of analyzing statistical data, such as mortality,
accident, sickness, and disability and retirement rates and construct probability tables to forecast risk and
liability for payment of future benefits, may ascertain premium rates required and cash reserves necessary
to ensure payments of future benefits.
According to William(2008) to be able to establish whether the client is insurable, agents do examine and
analyze accounting records to determine financial status of establishment and prepare financial reports
concerning operating procedures.
Insurance agents in many occasions serve as claim pre-settlements agents by reviewing claims for the
clients to be made. Stevenson (2007) they interact with customers to provide information in response to
inquiries about product and services and to handle and resolve various complaints which arise from the
customers in the field.
However, according to Zeithalm,(2008) and Groholdt (2001) most often insurance agents concentrate on
selling life insurance, automobile, property, health and pension.
Agents are required to attend meetings, seminars and programs to learn about new products and services,
learn new selling skills and receive technical assistance in developing new accounts.
They are supposed to calculate premiums and establish the mode of payment method after they have
made the presentation. Once the policy documents have been issued it becomes the sole responsibility of
the agents to deliver the policy document to the client to explain the wordings of the policy to make sure
that there is no misunderstanding to necessitate the clients owning the business so that it remains in books
of the company long enough. ( Nowotarski, 2006).
According to Blair (2010) Agents have a noble duty of developing marketing strategies to compete with
other individual agents or companies who sell insurance. In case of individual clients who may require
policies which exceed medical cover limit, the agent has the responsibility of directing the clients on
necessary medical examination and the completion of appropriate firms. U.S.A Bureau of labor statistics
occupational hard book (2010), Insurance companies need to open and acquire new business through
activations. These activations are usually carried out by the agents so that they get the opportunity to
explain the features, advantages and disadvantages of various policies to promote sale of Insurance plans.
2.2 Empirical review
The study conducted by Turner (2008) on factors influencing and affecting retention of agents in the
insurance industry in U.S.A. found out that; several factors affecting life insurance agent production were
tested in an effort to produce a predictive mode of agent and agency production which directly has impact
on their retention. Surprisingly, formal education, professional education and training showed no effect
on production. The number of policy holders and smaller management span of control both proved
predictive. The most important predictors, however, proved to be prior performance.
Published industry research, performed by the life insurance marketing and research Association in
(LIMRA) (2000) has served to define the extent of the problem. Agent retention is measured by the
percentage of agents hired in a given calendar year surviving into succeeding years.
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Four-year retention for example is approximately 11% for home service companies and 17% for ordinary
companies. For the year 1991, median production for ordinary agents, measured by sales commissions per
survivor, was $18,215.
Much general research has been done attempting to isolate the determinants of a sales person’s
performance. Churchill, Ford, Hartley, and Walker, (1998) explored role variable, skin, motivation,
personal factors, aptitude, and organizational/environmental factors.
This Meta-analysis based on 116 studies found that, on average, single predictors or sales performance
accounted for less than 4% of the variation in salesperson performance. Aptitude accounted for less than
2% skill levels slightly more than 7%>, motivation accounted for 6.6% role perceptions was by far the
best predictor, accounting for as much as 14% of the variation in performance. Personal variables (age,
height, and sex, completion, and dressing) accounted for 2.6% while organization and environmental
factors accounted for about 1%. They concluded that personal characteristics, while important, are not as
important as the influencing factors such as, training, company policies, skill levels, and motivation.
Cravens, Ingram, Loforge and Youngs, (1993), explored the relationships between compensation/control
systems and performance and retention. Their results indicate that the type of control system, that is
management control versus commission control, is correlated to several measures of success and agents
retentions.
They found out that sales performed and agents retention was more affected by commission control than
by management control. Lamount and Lundstorm (1977) studied a combination of personality attributes
(dominance, endurance, social recognition, empathy, ego strength (and personal characteristics cage,
height, weight, formal education and outside activities, civic and professional organization) as predictors
for sales success and not retention of an agent in insurance. Using sales results as the dependent variable
(Instead of management ratings) the height of the sales representatives and membership in civic and
professional organization was the most commonly significant predictor.
In a meta-analytic study of personality predictors of job performance and retention of agents, Tett,
Jackson, and Rothstein (1991) generally supported the use of personality measures in selection. Even
though significant the amount of variation explained by these factors was small (overall relation between
personality and job performance or corrected) and the measure of performance was largely a subjective
performance rating.
A study by Bluen, Barling, and Burns (1990) found out that there is great correlation between the number
of sales an agent can make and with age and retention. While Caldwell and O’Reilly (1982) found self
monitoring positively related to job performance and retention, Dubinsky and Hartely (2000) found self-
monitoring unrelated to performance.
2.2.1. Inputs in training and development
Any training and development programme according to Srinivas (2003) must contain input which enables
the participants to gain skills, learn theoretical concepts and help acquire vision to look into the distant
future. Lucas (2008), In addition to these, there is a need to impart ethical orientation, emphasizes on
attitudinal changes and stress upon decision – making and problem solving abilities.
Peter (1999) says that, worker needs skills to operate machines, and use other equipments with least
damage and scrap. This view is supported by Rohinton (2002)when he asserts that, This is a basic skill
without which the operator will not be able to functions. There is also the need for motor skills. Motor
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skills (or psychomotor skills, as they are sometimes called) refer to performance of specific physical
activities. These skills involved learning to move various parts of one’s body in response to certain
external and internal stimuli. (Thomas, 1982).
On the other hand education is to teach theoretical concepts and develop a sense of reasoning and
judgment that any training and development program must contain an element of education to well
understood by HR specialists as explained by (Ashly, 2000).
Development is an important component training programme which is less skill-oriented but stresses on
knowledge. Ford (2002) Knowledge about business environment, management principles and techniques,
Human relations, specific industry analysis and the like is useful for better management of a company
(Zeitham, 2008).
Christopher et al (2007) says that ethics is another very vital component of training, which is essential for
imparting greater ethical orientation to a training and development programme. There is no denial of the
fact that ethics are largely ignored in businesses. Unethical practices abound in marketing. Finance and
production functions in the organization.
2.3 Conceptual framework
Training and development helps in optimizing the utilization of human resource that further helps the
employees to achieve the organization goals as well as their individual goals. Training enhances agents’
confidence and boosts self-esteem which eventually enables them to identify themselves with the
company, consequently reducing chances of their leaving the company.
Training and development helps in increasing the job knowledge and skills of agents at each level .It
helps to expand the horizons of human intellect and an overall personality which definitely sharpens the
skills and competence of the agent in the field.
Age of an agent determines to a great extent the maturity and attitude in facing various situations in the
field and generally life problems which agents face on daily bases in their endeavor to source for clients
to buy insurance.
Working conditions affects employees generally since working condition would either demoralize an
employee or motivate. Once an employee is demoralized definitely performance becomes the casualty
which eventually may lead to an employee quitting the job or even being sacked.
Level of education determines the confidence of an employee in what he or she does. Most of the time
due to self confidence an employee becomes competent and performance generally good, hence the image
of the organization is boosted.
According (Armstrong, 2006) Remuneration is the compensation an employee receives in return for his
or her contribution to the organization.
Luthans (1992) asserts that Remuneration occupies an important place in the life of an employee. His or
her standard of living, status in society. Groholdt (2001) points out that, Motivation, loyalty, and
productivity depend upon the remuneration he or she receives. For the employer too, employee
remuneration is significant because of its contribution to the cost of production, besides, many battles (in
the form of strikes and lock outs) are fought between the employer and the employees on issues relating
to wages or bonus. For HRM (Human Resource Management) too, employee remuneration is such an
important subject, considerable space is devoted to books and periodicals for detached discussion of
wage-related and salary related problems.
3.0 Research methodology
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3.1 Research design
The study used a descriptive design aimed establishing the factors influencing agents retention of agents
in the insurance industry. The survey was a non-experimental, descriptive research method. Surveys are
useful when a researcher wants to collect data on phenomena that cannot be directly observed. The results
of a survey give conclusive findings that can be generalized to the large proportion of insurance
companies.
3.2 Target population
The population size will be the entire sales force of CFC life assurance company which consists of 6-3
agents
3.3 Sampling design
The sample size was determined using Fisher et al, sample size calculation formulae (Fisher et al 1998);
Z 21 / 2 P(1 P)
n
d2
Where;
n = Minimum sample size required
d = Absolute precision (6%)
α = Level of significance (5%)
Z = Standard normal deviate corresponding to 95% confidence interval (1.96)
P = Estimated prevalence of high retention among agents working for assurance
companies (13%)
Therefore, n = (1.96) 2 × 0.13 (1- 0.87) = 121
2
(0.06)
Allowing for 7% non-response, the sample size was adjusted upwards to 129.
The target population size (sampling frame) was 1000 distributed in three insurance companies; 300 in
British America, 400 in CFC life and 300 in Pan Africa life. Probability Proportional to Size (PPS)
allocation was used to determine the number of participants to be interviewed from each company.
Simple random sampling method was used in selecting an agent from each insurance company. All the
agents were listed using serial numbers from 1 to last; for British America from 1 to 300, CFC life from 1
to 400 and Pan Africa life from 1 to 300. Random numbers for each company according to the
proportional sample were generated using a computer program. The identified agents were contacted and
the questionnaire administered.
3.4 Data collection
3.4.1 Data collection method and techniques
A set of questionnaires was administered to the agents working for BRITAK, Pan Africa Life and CfC
Life in Nairobi. The data was collected using questionnaires given to the respondents at their convenient
times. Questionnaires were used because it was easier for the very busy respondents to answer and fill in
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the questionnaire at their own convenient times. The questionnaire had both open and closed questions to
enable the researcher collect enough information on the specific objectives which the study intended to
investigate. Secondary data was extracted from various annual reports published by AKI and IRA.
3.4.2 Data collection procedures
The researchers organized meetings with the agency managers of the selected companies to secure
appointment with their agents so that the researcher could administer the questionnaire.
3.4.3 Data analysis and reporting
The study employed descriptive analysis technique on both primary and secondary data. In both cases, the
data analysis was conducted using SPSS statistical software. Exploratory data analysis (EDA) technique
was used at the initial stage of analysis to uncover the structure of data and identify outliers or unusual
entered values.
Univariate analysis: Descriptive statistics such as proportions were used to summarize categorical
variables.
Bivariate Analysis: Pearson’s Chi-square test or fisher exact test was used to test for the strength of
association between categorical variables. All exposure variables (Independent factors) were associated
with the dependent variable (retention score) to determine which ones had significant association. Odds
Ratio (OR) and 95% Confidence Interval (CI) were used to estimate the strength of association between
independent variables and the dependent variable. The threshold for statistical significance was set at α =
0.05 and a two-sided p value at 95% confidence intervals (CI) reported for corresponding analysis.
Multivariate Analysis: All independent variables identified to significantly associate with ‘retention
score’ at bivariate analysis were considered together in a Multivariate analysis. This was performed using
Binary logistic regression where ‘backward conditional method’ was specified in order to eliminate
confounders and/or effect modifiers. Adjusted odds Ratios (AOR) together with their respective 95%
Confidence Interval (CI) were used to estimate the strength of association between the retained
independent predictors and the dependent variable (retention score).
4.0 Findings
4.1 Discussions
According to Torre, (2008), selection process is key to the retention of employees in any
Organisation which he points out that, for any organisation to be profitable the resourcing Strategies must
be commercially aligned and directly linked to the checks and balances which makes sure the rate of
turnover is as minimal as possible. James et al (2009) affirms the same point by saying that selection
process for the agents in the assurance industry is very critical and is directly associated with the retention
of the agents in the assurance industry. This study has confirmed these views in the study carried out to
determine the influence of resourcing strategies on the retention of the agents.
The study found out that there is great significant association between selection (resourcing strategies)
used by the assurance companies and the retention of the agents. Neutrality or disagreement with the
statement affirming this from the respondents was significantly associated with the retention hence
affirming that resourcing strategies have an influence on the retention of agents.
Armstrong (2006) points out that remuneration is the compensation an employee receives in return for
contribution made to the organisation. This view is also supported by Kenneth (2004) which he affirms
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that remuneration is a great motivator especially where the subject of remuneration is money besides
other fridge benefits. However according to the findings, the study found out that commissions as a mode
of remuneration used by all the assurance companies to remunerate their agents does not have any impact
on retention of the agents. Actually the research revealed that commissions in the assurance industry acts
as the major motivator for the seasoned sales people to remain in the assurance companies.
The study revealed that most of the sales agents would rather be paid commissions than salary this was
found to be in disagreement with what Lorbrd, et al (2009) asserted, that commissions as a mode of
remunerating assurance agents is influencing retention of agents. The findings also revealed that those
respondents who scored high on salary as the preferred mode of payment exhibited a very high possibility
of not being retained in the current assurance companies they are working for.
Tessin, (2008) in the literature review points out that training and development of the employees in the
organisation leads to the morale of the employees which makes them feel as part and parcel of the
organisation .When the employee identifies with the organisation the possibility of that kind of employee
remaining in the organisation is very high which eventually would help the company cat cost in training
new employees and also on recruitment and selection procedures. This view as been affirmed by the
findings of this study. Where by product knowledge was found to directly influence the retention of
agents in the assurance industry
The study found out that the working conditions have no influence on the retention of the agents as
opposed to the support that the agents require from the management to facilitate them in prospecting for
new clients. It was found out that beautiful structures would not be a motivation for an agent to remain in
an assurance company for a long time but rather proper reporting channels and management systems
which facilitate timely payment of commissions would motivate an agent to work longer with the current
assurance company.
Social demographics, gender and age were some of the variables which were found directly impacting on
the retention of the agents in the assurance industry such that female agents have the highest rate of
turnover in the industry as compared to male agents while young people of age bracket 24-35 have the
highest rate of turnover unlike the counter parts of age bracket 36-65.
4.1.2 Extent to which remuneration influences retention of the agents.
The entire study was targeted at evaluating the key items that influence the retention of agents in the
assurance industry. The study established that, the mode of using commissions to remunerate assurance
agents did not have any significant impact on retention of agents hence does not influence the rate of
turnover of agents in the industry. Only 23.3% of the respondents agreed that using commissions as a
mode of remuneration had a bearing on the retention of agents, while the majority of the agents are
motivated by commissions as a mode of payment to remain in the industry.
4.1.3 Extent to which social demographic influence the retention of agents in the assurance industry.
The research revealed that there is great association between the age of the agents, level of education,
gender and the retention of agents. The researcher revealed that the agents between Age brackets 24-45
have the greatest possibility of not remaining in the current assurance companies they are working for. At
the same time the study revealed that women have the greatest possibility of leaving the current employer
than male the counter parts. On the other hand the study revealed that the level of education has no
influence on the retention of agents in the assurance industry.
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4.1.4 Extent to which resorcing stategies influence the retention of agents.
The study revealed that there was significant association between agent’s retention .whereby the
respondents who disagreed or they were neutral was significantly associated with high retention. An agent
that was neutral with the statement which measured retention was 100 times more likely to be retained in
the current assurance company compared to one that was in agreement with the statement.
4.1.5 Extent to which management support influencies the retention of agents.
The extent to which the management support to the seles representatives was found to be greatly
influencing the rate of retention of the agents in the assurance indurstry.The study revealed that the agents
who are suported by the managent to carry on their business of prospecting for clients have a higher
posibility of remaining in the current assurance companies they are working for.Therefore the study
revealed that the managent has a bearing on the retention of agents.
4.1.6 The extent to which product knowledge influence agents’ retention
The study revealed that product knowledge is a key factor which impacts on the retention of agents
directly such that most of the respondents agreed that product knowledge enables them to identify
themselves with the company and this factor would make them work longer with the current assurance
companies they are working for.
4.1.7 The extent to wish working conditions influence retention of agents
The study revealed that working conditions of the agents does not have significant impact on the retention
of agents in the assurance industry. It was apparently clear that in whatever conditions the agents work
they would still be retained by their current employer.
4.2 Conclusions
The study revealed that the mode of remunerating assurance agents by use of commissions has no
influence on the retention of agents. It has revealed that actually commissions serve as a great motivation
for the seasoned assurance agents to work longer in the industry. On the same note the study revealed that
the level of education has no impact on the retention of agents, notwithstanding there was a great problem
realised within the agents between age bracket 24 and 35.These is the youngest group of the entire
population which was targeted. The results revealed that within this age group in the insurance industry
rate of retention is very poor which means that these agents between 24years and 35 years do not remain
in the industry for a considerable period of time to be profitable. However, training and development and
product knowledge came out so strongly as one of the major factors influencing retention of agents.
4.3 Recommendations
Therefore the study recommends proper training of the agents is given necessary emphasis within depth
consideration if the rate of turnover in the assurance industry is to change positively. The study also
recommends that agents are given financial support in line with their performance to facilitate prospecting
and soliciting new accounts.
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Fig 1 Illustration of the conceptual framework
Social demographics
product knowledge
Social evel of education
Resourcing strategies
Retention of
agents
Training & development
Working conditions
Remuneration
Independent variable Dependent variable
Source: Authors 2011
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Fig: 2 operational framework
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Salaries
Remuneration
Incentives
Team work
Organization
Informal
Culture
Groupings
Decision Making
Employee
Performance Governance
Organizational Structure
Structure
Operating
structure
Promotion
Human resource
Training
policies
Terms of
Employment
Table 1.Target population
Sections population frequency Percentage %
Male 600 50%
Female 400 48%
Source; Authors, 2011
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Table 3.3.1: Proportional allocation of the sample size
Insurance company Target population Sample population
300
British America 300 *129 = 39
1000
400
CFC life 400 *129 = 51
1000
300
Pan Africa life 300 *129 = 39
1000
Source: Authors 2011
110