Investigation Into Enterprise Risk Management Practices in the Indian Insurance Sector

Investigation Into Enterprise Risk Management Practices in the Indian Insurance Sector | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Investigation Into Enterprise Risk Management Practices in the Indian Insurance Sector Dr Sonjai Kumar, Dr Purnima Rao, Dr Munim K Barai This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6167376/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The paper investigates the prevailing Enterprise Risk Management (ERM) practices in the Indian insurance market. The paper makes a first attempt to understand embedded risk management practices within the Indian insurance market, helping policymakers, risk management professionals, regulators, and academicians to prepare for managing future risk better. Implementing enterprise risk management programs is becoming increasingly crucial for insurance companies due to increasing uncertainties resulting from complex economic, demographic, and socio-politico situations. Such uncertainties impact the various assumptions insurance companies use to price products and evaluate businesses. Enterprise risk management optimises the capital requirement of insurance companies, especially those following risk-based capital. The ERM implementation within the Indian insurance market started after the development of the 2016 corporate governance guidelines. To understand the ERM practices, primary data was collected from 252 professionals working within the Indian insurance industry between September 2022 to February 2023. Of the 252 participants, 53% were from the life insurance industry, 26% were from general insurance, 11% were from health insurance, and 10% were from others like brokers, consultants, etc. Different nature of ERM practices were observed. Some good risk management practices observed were documentation of the risk framework and policies, supervision by risk management committees of range of risk management initiatives, risk management processes implementation across the company etc. Some of the areas of improvement identified are lack of documentation of critical decisions to be taken within the risk management framework, setting down roles and responsibilities related to risk management within the job description, using risk appetite in decision making, lack of risk-reward behaviour etc. Risk Management Enterprise Risk Management Insurance Sector Risk Management Practices Full Text Additional Declarations The authors declare no competing interests. I declare that people I have interacted with and questioned through survey were informed of the study and provided consent to participate. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6167376","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":424875432,"identity":"24bb1319-0470-42e0-b5d6-d2fac62985dc","order_by":0,"name":"Dr Sonjai Kumar","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA/klEQVRIiWNgGAWjYJACAzAEgY8NIJKx8QDRWhhnNjBIAKkGglog2oCAmReshYEBrxb59t4DBT8KGIwNrh1+9tl2h02dbvthoC01NtE4TT9zLsGwx4DBzOB2mvHs3DNpEmZnEoFajqXlNuDSIpFjYMBjwGBjcDvBmDm37bCE2QGgFsaGwzi1yM/IMTD8A9aS/pnZEqTl/EP8Whhu5BgY84AdlmPMzAjScoOALQZnzhgYyxgwGEvezilm7G1Lk9x2A2hLAh6/yLf3mBm++cNg2Hc7fTPDzzYbfrPz6Q8ffKixwe0wBgY2YJz8RxNLwK0cBJgf4JcfBaNgFIyCEQ8A2xtdeBEBzK0AAAAASUVORK5CYII=","orcid":"","institution":"Tata Consultancy Service, India","correspondingAuthor":true,"prefix":"Dr","firstName":"Sonjai","middleName":"","lastName":"Kumar","suffix":""},{"id":424875433,"identity":"1e9729b5-a6d8-40a2-98c8-a37502c542c7","order_by":1,"name":"Dr Purnima Rao","email":"","orcid":"https://orcid.org/0000-0002-7537-9057","institution":"Fortune Institute of International Business, New Delhi, India","correspondingAuthor":false,"prefix":"Dr","firstName":"Purnima","middleName":"","lastName":"Rao","suffix":""},{"id":424875434,"identity":"e4474864-a54d-4191-b519-d5bec01e320f","order_by":2,"name":"Dr Munim K Barai","email":"","orcid":"","institution":"Asia Pacific Studies, Ritsumeikan Asia Pacific University","correspondingAuthor":false,"prefix":"Dr","firstName":"Munim","middleName":"K","lastName":"Barai","suffix":""}],"badges":[],"createdAt":"2025-03-06 06:01:04","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-6167376/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6167376/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":78278492,"identity":"5a8a75d3-59e6-499d-ab97-0effdbf3a69f","added_by":"auto","created_at":"2025-03-11 14:50:51","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":457671,"visible":true,"origin":"","legend":"","description":"","filename":"InvestigationintoERMPracticesinIndia.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6167376/v1_covered_6ee6339c-b634-419c-abdd-7246a5963b7b.pdf"}],"financialInterests":"\u003cp\u003eThe authors declare no competing interests.\u003c/p\u003e\n\u003cp\u003eI declare that people I have interacted with and questioned through survey were informed of the study and provided consent to participate.\u003c/p\u003e","formattedTitle":"\u003cp\u003e\u003cstrong\u003eInvestigation Into Enterprise Risk Management Practices in the Indian Insurance Sector\u003c/strong\u003e\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"Fortune Institute of International Business","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Risk Management, Enterprise Risk Management, Insurance Sector, Risk Management Practices ","lastPublishedDoi":"10.21203/rs.3.rs-6167376/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6167376/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003e\u003cem\u003eThe paper investigates the prevailing Enterprise Risk Management (ERM) practices in the Indian insurance market. The paper makes a first attempt to understand embedded risk management practices within the Indian insurance market, helping policymakers, risk management professionals, regulators, and academicians to prepare for managing future risk better. \u0026nbsp;Implementing enterprise risk management programs is becoming increasingly crucial for insurance companies due to increasing uncertainties resulting from complex economic, demographic, and socio-politico situations. Such uncertainties impact the various assumptions insurance companies use to price products and evaluate businesses. \u0026nbsp;Enterprise risk management optimises the capital requirement of insurance companies, especially those following risk-based capital. \u0026nbsp;The ERM implementation within the Indian insurance market started after the development of the 2016 corporate governance guidelines. To understand the ERM practices, primary data was collected from 252 professionals working within the Indian insurance industry between September 2022 to February 2023. Of the 252 participants, 53% were from the life insurance industry, 26% were from general insurance, 11% were from health insurance, and 10% were from others like brokers, consultants, etc. Different nature of ERM practices were observed. 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