INFLUENCE OF KNOWLEDGE MANAGEMENT PRACTICES ON THE PERFORMANCE OF INSURANCE FIRMS

Abstract

Purpose: The research determined the influence of knowledge management practices on the performance of insurance firms.

Methodology: A desk study review method was used to deduct the findings regarding the study objective.

Findings: The ability of an organization to innovate, whether through enhanced procedures or enhanced goods and services, is the primary factor that determines whether or not the implementation of knowledge management systems has a positive effect on performance. As a risk management sector, the insurance industry plays a significant part in the economy that is built on services provided by other businesses. The purpose of the study was to investigate the influence that knowledge management strategies have on the operational efficiency of insurance companies. Knowledge management is a strategic activity that an organization engages in to ensure that the knowledge activities contribute to improved performance and profitability. This link between knowledge management and the firm's strategic plans is established through knowledge management, which is a strategic activity of an organization. The insurance sector should make a concerted effort to adopt knowledge management methods because these strategies are a critical component in boosting a company's inventive capacity and, as a result, the company's overall performance. They should also encourage knowledge exchange among employees in order to improve the quality of work, strengthen decision-making skills, and increase problem-solving competences, which would ultimately benefit the firm. According to the findings, techniques for knowledge management are being used as instruments in the insurance industry with the intention of achieving a performance advantage for the purpose of competing with other businesses.

Unique contribution of theory, practice and policy: The authors expose other problems with the management of knowledge in the insurance industry and recommend that the industry adopt structured knowledge management methodologies as a solution to these problems. They provide this information as a component of their argument. This will enhance their capability to perform well in the business sector and boost the possibility that they will remain relevant in the future.