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New Evidence in the Definition of Strategy for Global Insurers

Author

Listed:
  • Rafael Hernandez Barros

    (Universidad Complutense de Madrid)

  • Javier Vidal-Garcia

    (Universidad de Valladolid)

  • Marta Vidal

    (Universidad Complutense de Madrid)

  • María Isabel Martínez Torre-Enciso

    (Universidad Autónoma de Madrid)

Abstract

The article shows how multinational corporations in insurance compete in the risky and complex global arena after the financial crisis, providing a conceptual model linking key cross-border operational drivers to international strategies; drawn largely from public data and qualitative interviews made to managers with involvement in the strategy of insurers throughout Asia, Europe, Latin America and USA. The existing literature justifies the different international strategies of multinational insurance companies on external factors in the creation of value, which are somewhat away from the reality of their decision-making processes. This research leads us to focus the formulation of the strategy on more concrete business drivers, with the specific goal of generating cash-flows and create shareholder wealth. It concludes that, by following the framework described, managers can rethink where to compete globally, and scientists can add conceptually to the current body of knowledge in insurance through new research on corporate strategy.

Suggested Citation

  • Rafael Hernandez Barros & Javier Vidal-Garcia & Marta Vidal & María Isabel Martínez Torre-Enciso, 2016. "New Evidence in the Definition of Strategy for Global Insurers," Economics Bulletin, AccessEcon, vol. 36(3), pages 1829-1843.
  • Handle: RePEc:ebl:ecbull:eb-15-00735
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I3-P179.pdf
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    References listed on IDEAS

    as
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    2. Boubakri, Narjess & Dionne, Georges & Triki, Thouraya, 2008. "Consolidation and value creation in the insurance industry: The role of governance," Journal of Banking & Finance, Elsevier, vol. 32(1), pages 56-68, January.
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    5. Yu‐Luen Ma & Nat Pope, 2008. "Foreign Share, Insurance Density, and Penetration: An Analysis of the International Life Insurance Market," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 11(2), pages 327-347, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    global strategy; insurance industry; value creation;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • G2 - Financial Economics - - Financial Institutions and Services

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