CONTRIBUTION OF INDUSTRIAL ALL RISKS INSURANCE TO THE GROWTH OF MANUFACTURING FIRMS IN KENYA

Abstract

Purpose: Manufacturing firms are key to successful economic development, since they helps generate virtuous and cumulative linkages with other sectors of the economy, drives technological progress, and has the strongest potential for productivity gains. But, significant as they are, manufacturers face varied exposures with customers, employees, and operations. Innovation, from new technologies to expanding markets, can introduce opportunity but also potential vulnerabilities. The purpose of this work is to enhance the reader’s understanding on the various contribution of Industrial all risks insurance to the growth of manufacturing firms in Kenya.
 Methodology: A desktop literature review was used for this purpose. Relevant journal articles for the study were identified using search engines such as Google Scholar, Google Books, Semantic Scholar, Science.gov and Research Gate. Studies done between 2015 and 2022 were considered.
 Findings: From the findings, researchers have shown that subscribing to individual insurance covers can be expensive and might leave insurance gaps. The findings suggest that subscribing to all risk insurance policies have a direct impact on the growth and expansion of the firms in the manufacturing sector.
 Unique Contribution to Theory, Practice and Policy: The study recommends that all manufacturing firms in Kenya should seek Industrial all risks insurance coverage as it provides for protection against all potential incidents that can result to massive losses. Manufacturing firms should also seek Industrial all risks insurance coverage as an effort to restrict the loss to their balance sheets, and in that sense, helps them to stay solvent.