Role of Regulatory Policies in the Relationship between Distribution Channel and Uptake of Life Assurance Products in Kisumu County, Kenya

Abstract

In Kenya, Life Assurance has a low penetration leading to overstretched support systems. The symptoms of low uptake of Life Assurance policies in Kenya are manifested in members of the Kenyan population resorting to informal ways of risk management especially in cases of premature deaths of household bread winners. This study's objective was to determine the role of Regulatory policies on the relationship between Distribution channel and Uptake of Life Assurance products in Kisumu County, Kenya. The study, which was anchored on the Human Life Value theory, adopted a Descriptive Survey technique and was quantitative in nature. The study used a sample of 537 respondents calculated using the Taro Yamane (1970) formula from a population of 6376 public primary school teachers in Kisumu County chosen using the stratified random selection approach. The collected data was analyzed using descriptive statistics. Hierarchical regression was used to establish the theorized causal linkages. The strength of the association between the independent and dependent variables was evaluated using Pearson correlation. The findings indicate that there is a significant relationship between Life Assurance products uptake and Distribution channel using Regulatory policies as the moderator. The study concludes that Regulatory policies have a positive and significant effect on the relationship between Distribution channel and uptake of Life Assurance products and recommends the need for stakeholders in the insurance industry to understand the importance of Distribution channel and Regulatory policies in the overall business strategy.