Search results

This paper aims to compare the emergence and evolution of organizational fields through an analysis of the life insurance industries in two large emerging markets. Using institutional theory as a conceptual framework, we compare the regulatory, cognitive and normative dimensions of the life insurance industry in China and India.

The authors introduce a qualitative variation of the country institutional profile (CIP) that has been traditionally implemented as a quantitative analytical tool used to describe differences in national environments. This newly proposed methodology captures the socially embedded aspects of the phenomenon more completely than commonly employed survey-based methodology.

This analysis leads to a three-dimensional typology of constructs and themes within each national environment. These themes include the importance of regulation and protectionism, the domestic savings culture, family support structures and human capital development within the industry. The authors conclude by comparing these typologies to consider the implications for studying change in organizational fields across contexts.

As the authors reflect on the evolution of organizational fields, they demonstrate how the interplay of historical factors and new global norms results in a negotiated stance between compliance with new norms and allegiance to local interests. In terms of methodological contribution, we show how the socially embedded aspects of the examined phenomenon are explored more completely by the proposed qualitative CIP than through its quantitative variation. This approach and the analysis illustrate a complex interplay of local and global norms within a selected industry that may be missed by other research methods.

Introduction: The Indian insurance sector has a large number of insurance companies. More than 20 companies are in the life insurance business, and nearly 35 are non-life insurers – only one public sector company among the life insurers (Life Insurance Corporation (LIC)). However, there are six public sector insurers in the property insurance division. The government policies have recently increased the foreign direct investment (FDI) share from 49% to 74%.

Purpose: The purpose of the study is based on the latest decision by the Government of India (GOI) to increase the FDI in the insurance sector, which was earlier 49% and now increased to 74%. The study will have objectives that impact change in FDI and its effect on customers’ decisions.

Methodology: This chapter is based on secondary information collected from the Insurance Regulatory and Development Authority and Articles from various journals for objectives 1 and 2. Qualitative analysis is done with the use of NVIVO software. There are primary two objectives taken under consideration in this chapter: objective 1: regulatory framework of insurance sector post-FDI change in limits by GOI and objective 2: customer awareness regarding changed limits of FDI in the insurance sector and its various factors. Fifty-four interviews were conducted, out of which a total of 40 responses have been considered for final analysis. An incomplete and unclear answer has been excluded from the study.

Findings: In the study’s findings, it was found that in accordance with the first objective, GOI changes policies according to time to time. Foreign Direct Investment (FDI) in the insurance sector recently increased by GOI Earlier, it increased in the year 2015 and recently this year, it increased by 49% again to 74%. In the second objective findings, the awareness about changes in FDI in the insurance sector respondent’s sentiments is positive and constructive. A maximum of respondents has said that they are aware of the insurance sector and the participation of various foreign international players in the insurance industry.

International business/International marketing.

Courses: the case is directly related to courses on “International Business” and “International Marketing” in the Master of Business Administration programme.

Training programmes: management development programmes for working executives, on the topics “Business across borders”, “Business stabilization in foreign markets”.

In 1999, the liberalization of the insurance sector as per the recommendations of the Malhotra committee gave way for privatization and foreign firms entered this sector through joint ventures. The business growth, which was enjoyed by these firms from 1999 to 2008, was tremendous. The growth percentage started declining following the global economic downturn in the capital markets. This situation compelled the insurance firms to re-look into their business strategy. On one hand whatever growth they had, 80 percent of it was through unit linked insurance plans depending on the capital market. On the other, it was identified that in a country like India the untapped market potential was among the rural millions. Reaching those people who are at the bottom of the pyramid necessitated a completely new business model to be developed as the need of the hour. The take stock of the position at this vnjuncture is the crux of the present case study, which envisages finding out alternative delivery models to suit the Indian rural market taking into account the intrinsic nature of life insurance and the basic living styles and mentality of the rural folk.

After discussion and analysis of this case, students will be able to:

• understand how market culture in a target country differs from that in the home country;

• appreciate how challenges in a developing country market have their own unique features to be understood;

• identify various courses of action and evaluate them on the basis of the host country factors;

• understand the “international planning process”; and

• appreciate how important it is for a country manager of a multinational firm to plan and execute the marketing mix suited to the inherent qualities of the target market.

understand how market culture in a target country differs from that in the home country;

appreciate how challenges in a developing country market have their own unique features to be understood;

identify various courses of action and evaluate them on the basis of the host country factors;

understand the “international planning process”; and

appreciate how important it is for a country manager of a multinational firm to plan and execute the marketing mix suited to the inherent qualities of the target market.

Teaching notes.

Purpose: In addition to the liberalisation policy, big data has revolutionised the level of awareness among customers about the quality and prices of insurance products. The rationale behind this study is to underline the issues in managing product portfolios in a disruptive environment, where a sudden and unexpected situation like COVID-19 pandemic is going to challenge the traditional models and insurance covers of organisations as well as individuals.

Methodology: The study is based on secondary data. The scope of the study will only be confined to the top two general insurance companies in India based on year of registration and market share to compare their product portfolios during pre- and post-liberalisation periods ranging from 1985–1986 to 2000–2001 and 2001–2002 to 2018–2019, respectively.

Findings: There is a lack of a balanced product portfolio for fulfilling the varying needs of customers. The insurance companies needed to set up different portfolios and should provide separate covers for natural catastrophes such as floods, earthquakes, landslides, tsunami, and the occurrence of new pandemics like COVID-19.

Significance: The study highlights that the outbreak of COVID-19 and similar pandemics or global emergencies need special preparation from the insurance sector.

The purpose of this paper is to benchmark the solvency status of Indian general insurance firms.

The paper collects, compiles and analyses the key financial, operational and business data of eight Indian insurance firms. The authors first decide on initial firm‐specific economic variables and use data of last five years from IRDA Reports and Company Annual Reports. The NAIC IRIS ratios method was used to obtain an initial risk classification. This was used as a proxy of insolvency risk. Linear regression and logit techniques were thereafter applied to estimate the significant factors (direction‐wise and magnitude‐wise) which influence insurer solvency.

The results suggest that the factors that most significantly influence Indian non‐life insurers are lines of business, the firm's market share, the premium growth rate, the underwriting performance and the claims incurred. Further, the factors which have the strongest effect are market share, change in inflation rate, firm size, lines of business and claims incurred.

The sample of Indian general insurers used is limited with regard to the time span. No holdout sample was used and the entire data set was subjected to statistical analysis. These somewhat limit the findings and implications.

The paper provides insurers with easy‐to‐use operational and marketing indicators to benchmark their solvency risk. It will lead to competitive goal setting for continuous improvement. Estimation of appropriate market/economic parameters can be a useful input for regulators. A few suggested indicators are new.

Previous studies of insurance companies have focused on developed economies (USA, Europe) or the Asian Markets (China and Japan). This paper determines a set of marketing, financial and operational variables to predict benchmark financial strength of general insurance firms in India. It incorporates qualitative inputs from practising managers and industry experts before carrying out quantitative modeling and analysis.

Health insurance in India has shown little development. It has not been able to evoke enthusiasm among Indian insurers. Consequently, several reports on Indian health care insurance have been produced. The purpose of this paper is to offer a review of this matter.

Critical review of related published and grey literature.

Almost 79 per cent of health expenditure is borne by private bodies and the rest by the public. Authors argue that to stimulate private health insurance growth, the Indian government should recognize health insurance as a separate line of business and distinguish it from other non‐life insurance. Particular emphasis is placed on the present health care scenario in India and international field generally. A global comparison of selected Asian countries, regarding their national incomes and health expenditure in public and private sectors, generates insights. Third party administrators (TPAs) facilitate a cashless health services for their customers and offer back‐up services to the insurance companies. Desired strategies and ways of furthering the role of the Insurance Regulatory and Development Authority in acting as a regulator for the purpose of ensuring the industry's smooth functioning is an issue for India's health services.

Information about the present complexities in the health insurance market has been gathered from various sources and summarized.

This chapter explores social representative groups as a medium to study “rural” meaning in Ireland. In research terms, the concept of “rurality” is increasingly debated, its existence questioned, and approaches to establish conceptual and methodological boundaries continuously challenged. By studying the language of social representative group leaders, it is argued in this chapter that the “rural” can be fluidly explored through its expression. Through a theme-based deconstruction of interviews with group leaders, I explore the expression of loss in Irish dialogue and its implication on “rural” meaning.

The purpose of this study is to examine the extent to which Indian insurance companies have adapted socially responsible reporting practices, HR disclosures and also to identify areas of corporate social reporting and HR disclosures.

The study adopts longitudinal design and has analyzed qualitative data by using content analysis in 26 insurance companies in India disclosed in annual reports. The paper focuses on annual reports of Indian insurance companies starting from the financial year 2002‐2003 to 2009‐2010, which are analyzed with regard to the nature of their human resource disclosures and social reporting. Finally, a test of legitimacy theory is then conducted.

The study found that the non‐life insurance companies disclosed significantly less social information than life insurance companies. The study also reveals that public life insurers disclosed significantly more social information than the other life insurance companies. On the other hand, a paired difference t‐test shows private general insurance companies disclose more social information as the difference significant.

The study has ignored longitudinal variations and the sample organizations comprised 26 government and private insurance organizations, restricting generalizations to the companies examined in the study.

The study recommends that a checklist of disclosures should be developed jointly by the Insurance Regulatory and Development Authority (IRDA), the Institute of Chartered Accountants of India (ICAI), and the Securities and Exchange Board of India (SEBI).

The study, while providing valuable insights, highlights the dearth of research of corporate social reporting in emerging economies and opens up many avenues for further research.

The purpose of this article is to evaluate revenue efficiency performance of life insurance companies in India. The study also compares if private or public insurance sector is more “revenue efficient”. Furthermore, the study determines the nature of return to scale (RTS) and identifies the leaders and laggards amongst insurance companies operating in India.

Revenue efficiency is calculated by employing data envelopment analysis – a non-parametric approach, on a data set of 24 insurance companies over the period 2013–2014 to 2017–2018.

The empirical results suggest that life insurance companies in India could generate only 34.4% of revenue, which is very less than what these are expected to generate from the same inputs. Majority of life insurance companies operating in India are operating at decreasing return to scale (DRS). There is a reduction in leaders and the highest proportion of companies is falling in the category of laggards.

As per the best knowledge of researchers, no empirical work has been carried out with respect to measuring the revenue efficiency of Indian insurance companies. The current study appropriately fills the gap by not only calculating the revenue efficiency scores of insurance companies in India but also provides insights into the causes of revenue inefficiencies. It also gives implications for efficient and effective management of insurance companies.