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

Sonjai Kumar and Purnima Rao
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Sonjai Kumar: Certified Risk Management Professional, IRM
Purnima Rao: Associate Professor, Fortune Institute of International Business (FIIB), India

Journal of Risk Management in Financial Institutions, 2023, vol. 16, issue 1, 21-33

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.

Keywords: strategy; risk management; strategic risk management; life insurance; Bancassurance; sales and distribution (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aza:rmfi00:y:2023:v:16:i:1:p:21-33

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