STRATEGIES IN ENHANCING UPTAKE OF CROP INSURANCE

A SURVEY OF INSURANCE COMPANIES IN KENYA

RABONG’O EVANCE MUGAH

Jomo Kenyatta University of Agriculture and Technology

Kenya

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CITATION: Mugah , R. E (2015). Strategies in enhancing uptake of crop insurance a survey of insurance companies in kenya. International Journal of Science and Agriculture 4 (11), 1-13.

ABSTRACT

Kenya as a nation has a great potential in her agricultural endowment. Agricultural sector forms a substantial portion of her GDP. Agricultural insurance is an integral part of this agricultural bracket and the need for its marketing techniques and uptake emphasis are important. Today, many insurance underwriters and brokers have mushroomed up to offer the agricultural insurance in Kenya. As a result they are compelled to operate in a more dormant and complicated environment. Strategic planning and marketing has therefore become key operation for these companies’ existence and survival. In a deliberate move aimed at enhancing their sales, these organizations have initiated various reforms in their operations. The purpose of this study was to determine the challenges facing crop insurance uptake in Kenya using a case of selected insurance companies. This study was undertaken with the aim of finding out the challenges and the best strategies that can be employed in the agricultural insurance sector in order to see it grow to greater heights. One proof of tremendous growth would be improved sales. A survey research design was employed using a questionnaire and the target population for this study consisted of all insurance companies offering agriculture insurance with headquarters in Nairobi. The study targeted the top management specifically the marketing managers, technical managers and sales representatives in the agricultural insurance departments due to the roles they play. Content analysis was used to analyze the data through descriptive phenomena, classifying it and seeing how the concepts interconnect as indicated by the respondents. Inferential statistics used was linear regression analysis and correlation. The study revealed that majority of famers do not understand insurance concept, partially because of the complexity nature of insurance or because there isn’t sufficient awareness to enlighten the farmers. Agricultural insurance services offering companies should always collect data on the crop insurance and use the data to innovate and develop superior products that reflect on what their market demands. This can be achieved by developing of feedback mechanism to promote conception and formation of practical and right products for the market. Outreach strategies need to be formulated that will be cost effective and of great impact, working closely with agricultural investment financiers seem to be the best way since most farmers rely on funding. So there should be a way of incorporating crop insurance as part of the loan but with a bottom line of making it affordable to the famers. Increasing the number of agents under good network covering all agriculture rich areas would be the key way to increase crop insurance penetration and adoption in the remote areas.

KEY WORDS

Crop Insurance Uptake strategies in Kenya

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