Effect of Financial Risk Management Practices on Financial Performance of Medical Insurance Companies in Kenya: A Case of Three Selected Insurance Companies
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Date
2017-02
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Journal ISSN
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Publisher
Daystar University School of Business and Economics
Abstract
Insurance companies are in the business of managing risk. This requires a well thought out structure that will ensure insurance companies are able to manage both the risk they face and for the insured. Relating financial risk management and performance, insurance firms will be able to come up with risk management practices that will maximize the shareholders profits. The purpose of the study was to assess the effects of financial risk management practices on financial performance of medical insurance companies in Kenya. A descriptive research design was adopted for this study. The population of this study was employees of CIC, Jubilee and UAP insurance based at the headquarters. The target population of this study was staff members in finance, business development, risk management, actuarial, claims, QA analysts, business analysts, and underwriting team. The study adopted a descriptive research design. Both primary and secondary data was used in this study. The sample size of the study was 127 employees. Primary data was collected through the use of questionnaires. Questionnaires were picked and dropped to the three insurance companies. Once the questionnaires the mass of raw data collected from the field was systematically organized to facilitate data analysis. Data was analysed using SPSS version 23 and presented using graphs and frequency tables. The study revealed that the companies extended credit facilities to its life policy holders based on the amounts saved in the policy. The study also established that credit appraisal, credit risk monitoring and assessment played the most significant role in influencing financial performance of medical insurance companies. The study recommended that the management of insurance companies should enforce financial risk management frameworks that conform to international best practices.
Description
Master Of Business Administration
In Finance
Keywords
Financial Risk Management Practices, Financial Performance of Medical Insurance Companies, Medical Insurance Companies in Kenya
Citation
Mwangi. M. M. (2017). Effect of Financial Risk Management Practices on Financial Performance of Medical Insurance Companies in Kenya: A Case of Three Selected Insurance Companies. Daystar University School of Business and Economics