Enterprise risk management in the insurance industry: Trends and future directions

Sonjai Kumar, Purnima Rao and Munim Barai
Additional contact information
Sonjai Kumar: Scholar in Enterprise Risk Management, Fortune Institute of International Business (FIIB), India
Purnima Rao: Associate Professor of Finance, Fortune Institute of International Business (FIIB), India
Munim Barai: Professor of Finance, Graduate School of Management, and Director, Ritsumeikan Center for Asia Pacific Studies, Ritsumeikan Asia Pacific University, Japan

Journal of Risk Management in Financial Institutions, 2024, vol. 17, issue 2, 183-196

Abstract: The research aims to describe the state of enterprise risk management (ERM) in the insurance sector. It highlights emerging trends in the application of risk management in the insurance sector and thereby reports the prominent research gaps and new avenues for research in ERM. The research adopts a systematic literature review (SLR) approach, using 187 research papers spanning 44 years (1977–2021). The paper identifies the fact that most ERM and insurance sector research is performed in North America and Europe, while developing economies in Asia and Africa lag. The paper establishes a three-way relationship between ERM, risk management (RM) and risk-based capital (RBC) where RM is a subset of ERM and RBC is a driver of ERM. The research shows that very few studies are conducted on risk culture, three lines of defence and the role of chief risk officers. The determinants of ERM identified are board, firm size, audit and risk management committee and corporate governance. The determinants identified for firm value are return on assets, return on equity, profit, Tobin's Q, among others. This research provides a way for academicians, practitioners and policy makers to design effective strategies for implementing ERM in organisations.

Keywords: risk management; enterprise risk management; ERM; insurance; risk-based capital; RBC; risk culture; systematic literature review (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/8368/download/ (application/pdf)
https://hstalks.com/article/8368/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:rmfi00:y:2024:v:17:i:2:p:183-196

Access Statistics for this article

More articles in Journal of Risk Management in Financial Institutions from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().