PRODUCT DIVERSIFICATION AND PRICING ON PENETRATION OF MICROINSURANCE IN KENYA.

Abstract

This research mainly evaluated the effect of product diversification and pricing on penetration of microinsurance. From the analyzed data, the study revealed that product diversification, with a mean score of 3.93 and a Beta of 0.328, significantly predicts microinsurance penetration by meeting diverse customer needs and expanding into underserved areas. Pricing strategies, crucial for competitiveness, show a mean score of 4.98 and a Beta of 0.210, indicating their role in balancing affordability and profitability for customer acquisition and retention. Main recommendations include further research on product diversification and dynamic pricing models, supportive policies for transparency and subsidies, practical training on product development and technology integration, and curriculum development for future professionals. The study concludes that strategic focus on these factors will enhance microinsurance penetration, financial inclusion, and sectoral growth.