Customer Satisfaction in Non-Life Insurance Companies in Kenya: Does Information Technology Agility Matter?

Abstract

: The insurance industry plays a key role in the development of a nation’s economy through provision of employment and financial security. Despite this, it has been noted that the non-life insurance firms in the Kenyan context have been faced with concerns in regards non-resolved customer complaints, insurance penetration, and clients’ confidence. As a result, this study examined the effect of information technology agility on customer satisfaction in the context of non-life insurance firms in Kenya. Variables for this research were anchored on dynamic capabilities and dissonance theories. The study population consisted of 28 non-life insurance companies that was observed through a sample survey of 133 from a population of 196. The methodology of the study was informed by descriptive research design. Data was obtained via a structured questionnaire. Face, content and construct validities were confirmed on the research instrument. Further, reliability of the research instrument was analyzed on the basis of Cronbach Alpha index constructed from observations gathered in a pilot study. Statistical interrogation of data involved the use of descriptive and inferential analysis. Whereas descriptive analysis focused on sample mean and sample standard deviation, inferential analysis encompassed correlation and regression analysis. Statistical results were displayed in figures and tables. The study revealed a moderate positive linear relationship between information technology agility and customer satisfaction. Additionally, linear regression analysis confirmed that information technology agility has positive effect on customer satisfaction. It’s therefore recommended that the managers in charge of information technology should strengthen programs on information technology sharing, and business process integration. Sufficient resources should be availed for consistently maintaining and upgrading the information technology infrastructure so as to be responsive to shift in information needs in an ever-changing business environment.