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Factors That Influence Pricing Of Life Insurance Products: A Case Study of ICEA Lion Life Assurance Company

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dc.contributor.author Abachi, Jerusha
dc.date.accessioned 2018-07-24T07:15:34Z
dc.date.available 2018-07-24T07:15:34Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3944
dc.description A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The goal of the study was to determine which factors influence the pricing of life insurance products with the case of ICEA Lion Life Assurance Company being the focus. The study aims to tackle three research questions which include to evaluate the influence of demographics on premium pricing, to examine the influence of socio-economic factors on premium pricing and to determine the influence of regulatory framework on insurance premium pricing. The study utilised a descriptive research design and evaluated the entire population or sampling frame composed of all 9 employees of the Actuarial and Business Development Departments of the insurance company. However, only 7 respondents participated leading to a 77.78% response rate. The study’s major findings and conclusions were that demographic factors such as age, gender, occupation and the health status of a client do play a role in insurance pricing. However, socio-economic factors such as political events, changes in the economy, war and terror activities and the safety standards of an individual’s work environment do not greatly impact pricing of products. But the existence of certain economic groups and lifestyle activities of an individual does. As far as the regulatory framework was concerned, the study noted that due to competitive market dynamics, not all products are strictly priced based on regulatory requirements of underwriting and claims experience. The study recommended that insurance companies will need to now employ pure underwriting on all risks based on the laid out actuarial principles especially when it comes to group products. This is because of the changes in the risk based capital requirements expected to take place by June 2018. Thus pricing models currently being employed by insurance companies will have to be evaluated in order to ensure that they are in compliance with both regulation and the business landscape. Insurers will also need to enhance product innovation in order to guarantee that their product lines are meeting every arising need and at favourable price points. In this regard companies should seek to diversify into new market segments particularly with regard to ordinary life products which remains not fully tapped. This way they will be able to access new markets thereby growing their business segments and increasing insurance penetration within the country. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Pricing en_US
dc.subject Life Insurance Products en_US
dc.subject ICEA en_US
dc.subject Lion Life Assurance Company en_US
dc.title Factors That Influence Pricing Of Life Insurance Products: A Case Study of ICEA Lion Life Assurance Company en_US
dc.type Thesis en_US


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