Strategic Planning in the Malaysian Insurance Industry

A R M Zabid, S Kamaruddin, O Maizon and R A Ghaffar
Additional contact information
A R M Zabid: Lecturers in the Faculty of Economics and Management, Universiti Pertanian Malaysia
S Kamaruddin: Associate Professor, Faculty of Business Management, Universiti Kebangsaan Malaysia
O Maizon: General Manager, Malaysian Insurance Institute
R A Ghaffar: Lecturers in the Faculty of Economics and Management, Universiti Pertanian Malaysia

The Geneva Papers on Risk and Insurance - Issues and Practice, 1991, vol. 16, issue 4, 448-461

Abstract: This article examines the extent of planning and the key essential characteristics of planning in the Malaysian insurance industry. A survey was conducted with the support of the Malaysian Insurance Institute. A total of 59 insurance companies involved in life, general and composite businesses were given the questionnaire. A total of 36 companies responded the questionnaire. The findings showed that all the insurance companies conducted formal planning. However, only one quarter have a planning unit/section. The extent of planning conducted varies according to the type of insurance business and existence of planning unit/section. The Chief Executive Officers are highly involved in the planning activities. Planning activities are focused at the functional level, short term, and the medium term. There are more firms conducting an internal analysis than an external analysis. As for corporate objectives, underwriting profit is rated as most important and the sum insured as least important. It was also found that nearly 89 % of the firm pursed a combination strategy of growth and stability. Overall, nearly 75% considered the effectiveness of the planning system in achieving corporate goals, and about 37% considered it as most important towards better performance. Implications of the findings are also discussed.

Date: 1991
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/gpp/journal/v16/n4/pdf/gpp199135a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/gpp/journal/v16/n4/full/gpp199135a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:gpprii:v:16:y:1991:i:4:p:448-461

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().