Original scientific paper
https://doi.org/10.1080/1331677X.2023.2175006
Custodian of wealth: an assessment of insurers’ risk management practices
Danish Ahmed
Hu Xuhua
Yuantao Xie
Mohammed Abdel-Haq
Zhang Lijuan
Abstract
Unlike the banking industry, the insurers’ risk management framework
(RMF) is not governed internationally. For this reason, their risk management
(RM) practices are not comparable. We surveyed insurance personnel
regarding understanding risk and risk management (URRM), risk
identification (RI), risk assessment and analysis (RAA), risk monitoring
(RMON), and risk management practices (RMP). These insurance personnel
were working at various hierarchical levels in life and non-life
insurance. These insurers were operating in developed and emerging
insurance market. We took USA and UK insurers as a proxy for developed
insurance market. Meanwhile, Chinese, and Pakistani insurers
were substituted for emerging insurance market. We analyzed the
data through descriptive statistics and an ordered logit model. Our
results showed that insurers’ RM is stronger, but large differences
exist at the hierarchical, insurer type and country levels. Apart from
policy implications, our findings suggest that to achieve sustained
competitive advantage insurers should minimize these differences
Keywords
Risk management; insurance; U.S; UK; China; Pakistan
Hrčak ID:
314041
URI
Publication date:
8.6.2023.
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