STRATEGIC DIRECTION IN LEADERSHIP AND PERFORMANCE OF INSURANCE COMPANIES IN KENYA

Abstract

The purpose of this study was to examine the role of strategic direction in leadership and performance of insurance companies in Kenya. Owing to insurance industry contribution to the economic growth of a country there was need to establish the low insurance services. The study therefore sought to find out if this low uptake of insurance products was associated with strategic direction in leadership in the insurance industry. The study population comprised of the 55 insurance companies in Kenya and a census approach was adopted for each and every company. A self- administered questionnaire was presented to the business strategic managers of the insurance companies. Data was first subjected to descriptive statistics. Further, simple linear regression was fitted to examine the role of strategic direction in leadership on performance of insurance companies in Kenya. The results of the study indicated that performance of majority of insurance companies were influenced by strategic planning and leadership. In addition to that most of the respondents were in agreement that through strategic direction in leadership they have managed their customer needs optimally. There was neither agreement nor disagreement on whether strategic direction enhanced the growth of profit levels in their respective insurance companies. The results of the findings were in support of strategic leadership theory that supported provision of strategic direction in order to optimize achievement of organization goals and objectives. There was however a general consensus that insurance companies’ strategic plans should clearly articulate their vision and mission.