Life assurance is a plan that ensures families and other beneficiaries are financially secure especially after death of the bread winner. The life assurance sector in Kenya has been striving to improve its performance in order to improve the overall livelihood of Kenyans. Despite these efforts, not much has been achieved with the country posting poor results compared to the developed and developing countries. The growth of life assurance in Kenya has declined significantly from 29.4% in 2014, to 8.6% in 2015 due to lack of good strategies. This study therefore seeks to investigate the effects of competitive strategies on the performance of life assurance companies in Kenya. The specific objectives of this study are evaluating the effect of cost leadership, differentiation, market focus and customer relationship management on performance of life assurance companies in Kenya. The study adapted a descriptive research design. The target population was the 26 life assurance companies in Kenya consisting of 780 managers and unit of analysis was top, middle and line managers of all the 26 life assurance companies. Through systematic random sampling, a sample of 150 managers was selected. Primary data was collected using structured questionnaires with both openended and closed-ended questions. Reliability was tested through cronbach’s alpha and research questionnaires were carefully checked to ensure they measured the content they were supposed to measure. The analysis of quantitative data was carried out using descriptive statistics which included frequencies, measures of central tendencies (mean) and measures of dispersion (standard deviation , correlation and regression model. The analysis was guided by use of statistical package for social sciences (SPSS version 23). Frequency tables, graphs and pie charts were used for visual display and data presentation. The results revealed that most of the life assurance companies in Kenya, have implemented various competitive strategies aimed at improving their performance. The results further revealed that there was a strong positive relationship between cost leadership and performance in life assurance companies in Kenya since a correlation coefficient of 0.866 with p–value (0.000) at 1% significance level was obtained. The study obtained that there was a positive relationship between differentiation and performance of life assurance companies in Kenya, since results obtained a correlation coefficient of 0.910 with p -value (0.000) at 1% significant level. The study further revealed that there was a significant positive relationship between market focus and performance of life assurance companies in Kenya, since results obtained a correlation coefficient of 0.920 with p-value (0.000) at 1% significant level. The study also revealed that there was a positive relationship between CRM and performance of life assurance companies in Kenya, since results obtained a correlation coefficient of 0.924 with p-value (0.000) at 1% significant level. This study will help in the formulation and improvement of existing strategies to enhance the performance of life assurance companies in Kenya. The study recommends that life assurance companies should sustain and continually improve on competitive strategies. They should also consider improving on the CRM and market focus.
