Effects of Pricing and Reinsurance Practices on Performance of General Insurance Firms in East Africa


General insurance firms’ performance is associated with numerous factors, including optimal pricing and appropriate reinsurance coverage both of which form part of the actuarial risks of these firms. This study examined how pricing and reinsurance practices influence the performance of non-life insurers in East Africa. Secondary and primary data were collected from 82 general insurance firms from Tanzania, Kenya and Uganda. The study showed a statistically significant and positive association between pricing and reinsurance practices and non-financial performance. Further, a statistically insignificant relationship between pricing and reinsurance practices and financial performance was revealed. From the findings, the implication is that general insurance firms need to engage in pricing and reinsurance practices that are closely linked to the company’s underwriting strategy for better results. The study recommends that for general insurance firms to improve their overall performance they should focus on other relevant factors besides pricing and reinsurance practices.


Keyword: Pricing, Reinsurance, Firm Performance, General Insurance Firms

Caren Angima .