{'fraction_non_alphanumeric': 0.011363636363636364, 'fraction_numerical': 0.007747933884297521, 'mean_word_length': 5.456666666666667, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Effect of Market Risk and Operational Risk Exposures on Profitability of Life Insurance Companies in Kenya

The main objective of this study was to analyze the effect of market and operational risks exposure on profitability of Licensed Life Insurance Companies in Kenya. The specific objectives of the study are; to establish the effect of foreign exchange rate risk exposure on profitability of licensed insurance companies in Kenya. In order to attain the set objectives, the study tested the following hypotheses; HO1: Foreign exchange rate risk exposure does not have significant effect on profitability of Licensed Life Insurance Companies in Kenya; HO2: interest rate risk exposure does not have significant effect on profitability of Licensed Life Insurance Companies in Kenya; HO3: Operation expense risk exposure does not have significant effect on profitability of Licensed Life Insurance Companies in Kenya. The study adopted a descriptive survey research design. Descriptive study is concerned with finding out who, what, where and how of the variables of the concerned research. The target population for this study comprised of the 16 Licensed Life Insurance Companies in Kenya. The study used a panel data census of the 16 Licensed Life Insurance Companies in Kenya with consistent data between 2015 to 2019. The findings from the study established a significant and positive relationship between foreign currency exchange, interest rate and operational expense risk exposure on profitability of Licensed Life Insurance Companies in Kenya. The study therefore concluded that foreign currency exchange, interest rate and operational expense risk exposure can be used to predict profitability of Licensed Life Insurance Companies in Kenya. The study recommends that Licensed Life Insurance Companies in Kenya should ensure that they develop market and operational risk exposure policies to guide their business operations.