INFLUENCE OF TECHNOLOGY AS A STRATEGIC RESOURCE ON PERFORMANCE OF INSURANCE COMPANIES IN KENYA. A CASE OF AAR INSURANCE KENYA LIMITED
Abstract
The purpose of the study was to establish the influence of technology as a strategic resource on performance of insurance companies, focusing on AAR insurance Kenya limited. The study was grounded on strategic choice theory, the resource based theory, diffusion theory and open systems theory. A descriptive research cross sectional survey design was used in this study. The total target population was 221 management staff of AAR insurance Kenya limited. A sample population of 140 was arrived at by calculating the target population of 221 with a 95% confidence level and an error of 0.05 using the below formula taken from Kothari (2004). The study selected the respondents using stratified proportionate random sampling technique. Primary data was obtained using self-administered questionnaires. The drop and pick method was preferred for questionnaire administration so as to give respondents enough time to give well thought out responses. After data cleaning which entailed checking for errors in entry, descriptive statistics such as frequencies, percentages, mean score and standard deviation was estimated for all the quantitative variables and information presented inform of tables. The qualitative data from the open-ended questions was analyzed using conceptual content analysis and presented in prose. The study found that technology in underwriting operations, technology in provider management, technology in claims management and technology in customer service operations affects performance of AAR insurance Kenya limited greatly. The study concluded that underwriting operations had the greatest effect on performance of AAR insurance Kenya limited followed by technology in claims management then technology in customer service operations in while technology in provider management had the least effect on performance of AAR insurance Kenya limited. The study recommends that the insurance companies should invest more in modern underwriting technology and data environments, that the insurance companies should come up with technologies that will be able to address the needs of the organization and that the management of insurance companies should advocate transparency when executing the firm projects.
Key Words: Technology, Underwriting Operations, Provider Management, Claims Management
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.705
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