IDEAS home Printed from https://ideas.repec.org/a/aza/rmfi00/y2023v16i1p21-33.html
   My bibliography  Save this article

Failure of strategic risk management in a life insurance company in India

Author

Listed:
  • Kumar, Sonjai

    (Certified Risk Management Professional, IRM)

  • Rao, Purnima

    (Associate Professor, Fortune Institute of International Business (FIIB), India)

Abstract

This paper discusses the importance of strategic risk management in avoiding an adverse effect on performance in the life insurance sector if long-term risks are ignored. The case considered here is the rise and subsequent fall of a life insurance company in India. The company initiated the sales and distribution of products in collaboration with banks (Bancassurance) but ignored the market momentum of the emerging distribution trend and did not change its distribution strategy. As a result, the company, which played a pioneering role in establishing the Bancassurance model, is now performing poorly, being at the bottom of the ladder on new business premium income.

Suggested Citation

  • Kumar, Sonjai & Rao, Purnima, 2023. "Failure of strategic risk management in a life insurance company in India," Journal of Risk Management in Financial Institutions, Henry Stewart Publications, vol. 16(1), pages 21-33, January.
    • Handle: RePEc:aza:rmfi00:y:2023:v:16:i:1:p:21-33
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/7404/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/7404/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    strategy; risk management; strategic risk management; life insurance; Bancassurance; sales and distribution;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:rmfi00:y:2023:v:16:i:1:p:21-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.