International Journal of Management and Leadership Studies
2022; 4(ii): 8
ISSN:
2311 7575
EFFECT OF PROCESS AUTOMATION ON PERFORMANCE OF GENERAL INSURANCE COMPANIES IN KENYA: A CASE STUDY OF CIC GENERAL INSURANCE COMPANY LIMITED
Gitau, B. M , Kanyanjua, D
Published:
02 May, 2022
Volume:
4
Issue:
ii
Keywords:
EFFECT OF PROCESS AUTOMATION ON PERFORMANCE OF GENERAL INSURANCE COMPANIES IN KENYA: A CASE STUDY OF CIC GENERAL INSURANCE COMPANY LIMITED
The main purpose of the study was to investigate process automation and its effect on
the performance of general insurance companies in Kenya with the case study being
CIC General Insurance company Ltd. The Insurance Industry in Kenya has been
making underwriting losses in the last several years. CIC General has not been an
exception in making underwriting losses. The objective of the study was to establish
whether process automation would have a positive impact if implemented towards
improving the performance of Insurance companies. The Study was anchored on
Diffusion of Innovations theory as developed by E.M. Rogers in 1962, which seeks to
clarify how, why, and in what proportion new ideas or technologies spread. The study
used a descriptive research design. The study targeted 315 employees of CIC General
Insurance Company across all the departments. A stratified random sampling method
was used where 65 respondents, representing 20% of the entire target population,
formed the sample size of the study. The researcher used structured questionnaires to
collect data from the sampled respondents. Statistical package for social sciences was
used for data analysis to help in generation of descriptive statistics and inferential
statistics, obtain results of multiple linear regression and ANOVA results. The study
data was presented using figures, and tables. The study established that process
automation influence digital transformation in general insurance company’s
performance. The study established that process automation has reduced manual tasks
in service delivery. The study concludes that there was a linear relationship between
process automation, and the performance of general insurance companies in Kenya. The
study recommends that establishing process automation requires one system that
should be dependable and one that will increase productivity, performance, and reduce
cost. This study gives more information towards understanding the status of Digital
Transformation and as well aid policy makers in the insurance firms on areas to
consider for effective Digital Transformation in improving the various aspects of their
performance.