Information and Communications Technology Capabilities and Performance of Insurance Companies in Kenya
Winstan Onyango Otieno, David M. Nzuki

Abstract
The performance of insurance companies in Kenya is lagging, with insurance penetration below three percent compared to the global average of seven percent. This has led to a decline in net profits and shareholders' returns; there is also fear that the insurance industry may exit the Kenyan market. This study examined the relationship between ICT capabilities and the performance of insurance companies in Kenya. The study revealed that ICT capabilities likeIT innovations (ß=0.243, p=0.009<0.05) and artificial intelligence (ß=0.558, p=0.009<0.05) significantly boosted the performance of insurance companies.However, the impact of big data analytics (ß = 0.014, p = 0.748 > 0.05) and digital communications (ß = 0.032, p = 0.523 > 0.05) was found to be insignificant. The study concluded that insurance companies in Kenyashould consider technological innovations such as InsurTech solutionsand incorporateartificial intelligence tools like machine learning, chatbot advisors, and telematicsto address their performance challenges. This study’s findings provide valuable insights for insurance companies looking to improve their performance by leveraging ICT capabilities.

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