Competitive intelligence strategies and the performance of insurance companies in Kenya

Abstract

The performance of insurance companies increasingly depends on their capacity to leverage competitive intelligence in today’s dynamic and uncertain business environment. This study examined the effect of competitive intelligence strategies and the performance of insurance companies in Kenya, focusing on four key dimensions: market intelligence, technology intelligence, customer intelligence, and competitor intelligence. Existing literature has largely concentrated on other industries and regions, leaving the Kenyan insurance sector underexplored. To address this gap, the study adopted a mixed-methods approach aimed at generating empirical evidence on how these facets of competitive intelligence influence organizational performance. A descriptive research design was applied, targeting 56 licensed insurance companies in Kenya with a workforce of approximately 12,000 employees. From this population, 150 respondents were selected through proportionate stratified sampling. Data was collected using structured questionnaires, semi-structured interviews, and document analysis. Quantitative findings were analyzed using descriptive and inferential statistics, including correlation and regression analysis, while qualitative insights were derived from interviews and document reviews to enhance triangulation and validity. The study established a significant positive relationship between all four intelligence dimensions and organizational performance. Specifically, market intelligence (β = 0.275, p < 0.001), technology intelligence (β = 0.283, p < 0.001), customer intelligence (β = 0.325, p < 0.001), and competitor intelligence (β = 0.417, p < 0.001) were found to influence firm performance positively. These results underscore the critical role of well-structured intelligence systems in driving strategic decision-making and competitive positioning. The study recommends that Kenyan insurance firms invest in robust market research systems, establish dedicated customer intelligence units, and implement structured competitor intelligence frameworks. In addition, IT departments should continuously scan emerging technologies such as artificial intelligence and automation. Finally, promoting interdepartmental collaboration and continuous staff training in intelligence analysis can enhance organizational adaptability, long-term profitability, and growth.