EFFECT OF CRISIS DETECTION ON ORGANIZATIONAL PERFORMANCE IN THE INSURANCE INDUSTRY IN KENYA. A SURVEY OF SELECTED INSURANCE COMPANIES IN KENYA

Abstract

The purpose of the study was to examine the influence of crisis detection strategies on organizational performance in the insurance industry. A survey of selected insurance companies in Kenya. The target population for the study was 122 staff members of selected insurance companies in Nairobi. Stratified random sampling was used in the study to select a sample size of 61 respondents. The data collection instrument that was used in the study was the questionnaire. Data was analyzed using descriptive and inferential statistical methods. The study results show a strong positive association between crisis detection on organizational performance in the insurance industry (R=0.556). The coefficient of determination adjusted R2= 0.306 which means that crisis detection explains 30.6% of the variance in organizational performance. The study indicated that crisis detection has effect on organizational performance in the insurance industry in Kenya. That Crisis Detection is positively and significantly associated with organizational performance in the insurance industry in Kenya. There are effective monitoring mechanisms for crisis, insurance companies lack effective monitoring mechanisms. There was regular assessment by insurance companies to detect crisis. There were some measures that enabled definition of crisis by insurance companies which enabled them detect crisis.