Risk Underwriting, Crisis Management, Regulatory Framework and Performance of Insurance Companies in Kenya: A Case of Sanlam General Insurance Company


  • Lawrence Makau Management University of Africa
  • Washington Okeyo Management University of Africa




Insurance companies are in the business of risk taking built on trust. Optimal  underwriting  and  claims  management  standards  are  applied  to  safeguard  insurers’ against exposure to underwriting losses for enhanced performance. The main objective was to determine the relationship among underwriting, crisis management, regulatory framework and performance of Sanlam general insurance company in Kenya. Descriptive research design was adopted. The target population for this study was 72 employees whereby a census of all the employees was conducted. Questionnaires were used for data collection. The results also revealed that risk underwriting has positive and significant effect on performance of Sanlam insurance company (B=.682, p=0.000<0.05). Crisis management has mediating effect on the relationship between underwriting and performance of Sanlam general insurance company while insurance regulations has a positive moderating effect on the nexus between underwriting and insurance performance implying that insurance regulations enhances operational efficiencies of insurance companies thus their financial performance. The study concludes that risk underwriting influences the performance of insurance companies, crisis management is a significant mediator in the relationship between underwriting and performance of insurance company while insurance regulations moderates the relationship between underwriting and performance of insurance company. There is need for the Sanlam Insurance Company to enhance the capability of its personnel to appropriately draft insurance related risks and claims though periodic trainings on underwriting risk. There is need for Sanlam Insurance to enhance their capacity of managing business crisis like financial crisis, reputation damage, market volatility and unfair competition. The study urges insurance regulatory authorities to undertake periodic assessment of the insurance service providers to ensure that the suggested business policies and guidelines are observed. The study also recommends for the need of updating insurance policies and guidelines on periodic basis to ensure that they align with changing business environment.

Keywords: Risk Underwriting, Crisis Management, Regulatory Framework, Performance of Insurance Companies, Sanlam General Insurance Company

Author Biographies

Lawrence Makau, Management University of Africa

School of Management and Leadership

Management University of Africa

Washington Okeyo, Management University of Africa

School of Management and Leadership

Management University of Africa


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How to Cite

Makau, L., & Okeyo, W. (2021). Risk Underwriting, Crisis Management, Regulatory Framework and Performance of Insurance Companies in Kenya: A Case of Sanlam General Insurance Company. Journal of Human Resource & Leadership, 5(3), 96–113. https://doi.org/10.53819/10.53819/81018102t3026