Product Innovation and Financial Performance of Health Insurance Firms in Kenya: A Case of Jubilee Health Insurance Limited

Abstract

The health insurance sector in Kenya has undergone significant transformation driven by evolving consumer needs, regulatory reforms, and technological innovation. However, many health insurance firms, including Jubilee Health Insurance Limited, continue to face challenges related to profitability, compliance, and product differentiation. The study examined the effect of product innovation strategies on financial performance of health insurance firms in Kenya, focusing on Jubilee Health Insurance Limited. Anchored on Dynamic Capabilities Theory and Resource-Based View, the study employed a descriptive survey design. A census was conducted among 75 managers, supervisors, and assistants at Jubilee Health’s Nairobi headquarters. Data were collected using a semi-structured questionnaire and analysed using descriptive and inferential statistics. The results showed that product innovation strategies had a significant positive effect on financial performance: (β = 0.592, p < 0.05). The findings suggest that investment in innovative health insurance products enhances profitability. The study concludes that strategic alignment between innovation is key to financial sustainability in Kenya’s health insurance sector. The study recommends that policymakers and insurers integrate digital transformation and customer-centric innovation within compliance frameworks to promote universal health access (SDG 3), sustainable growth (SDG 8), and innovation (SDG 9).

Key Words: Financial performance, Jubilee health insurance, product innovation.