BANCASSURANCE AND MARKET VALUE OF LISTED COMMERCIAL BANKS IN KENYA
Jacklyne Midega - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Joshua Matanda - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Richard Ngali. PhD, CFE - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The objective of the study was to fill conceptual, contextual, and methodological gaps. The study's overall goal is to determine the effects of bancassurance on the market value of commercial banks listed on Kenya's Nairobi Securities Exchange (NSE). The specific objectives of the study were to assess the effect of bancassurance life insurance, motor vehicle insurance, home property insurance and health insurance on market value of listed commercial banks in Kenya. This study used a descriptive research design. The target population was the 10 commercial banks listed in the NSE. A census method was applied to select all the 10 banks. This study utilized secondary data collection technique. Panel data on market value and documented aspects of bancassurance was sourced from CMA reports, published articles, referred journals and other relevant materials from the internet and library sources. Qualitative and quantitative analysis of data was done to answer the research questions of this study. The data collected was synthesized using the Statistical Package for Social Sciences (SPSS). Descriptive analysis described the data in terms of frequencies, percentages, mean scores and standard deviations. The multiple Regression analysis was used. The data was presented using frequency distribution tables and figures. The study found that NSE listed banks have increasingly participated in bancassurance motor vehicle insurance; there has been a significant uptake of bancassurance life insurance among the listed commercial banks, the listed banks have reported major growth in provision of bancassurance motor vehicle insurance over the five years period portraying uptake of this bancassurance product; and there has been a steady growth of bancassurance home property insurance product among the listed commercial banks in Kenya. The regression model indicates that, holding the predictor variables constant, the market value of NSE listed commercial banks in Kenya would be 5.970. The results from the regression analysis revealed that there were beta coefficients of 0.619, 0.755, 0.528 and 0.573 for bancassurance life insurance, bancassurance motor vehicle insurance, bancassurance home property insurance and bancassurance health insurance respectively. The study concludes that bancassurance health insurance products have been gaining acceptance. The NSE listed commercial banks have showed a steady growth in market value as depicted by the GWP values. There exist a positive relationship between bancassurance and market value of NSE listed banks. The listed commercial banks have shown tremendous growth in uptake of bancassurance products like motor vehicle, health, property and life insurance policies. The recommends that the listed banks needs to sensitize their customers on the various bancassurance life insurance products that meet their needs. The listed banks should equip their employees with training programs in order to get a clear understanding of the bancassurance motor vehicle insurance products. The study further recommends that listed banks to increase understanding of the range of bancassurance home property products offered to clients so that each individual in various classes of living standards can have relevant products that suit their needs. The management of listed banks should come up with strategies to promote adoption of bancassurance health insurance to their customers through intense advertising to its customer most of whom are not insured.