Insurers' risk management as a business process: a prospective competitive advantage or not?

IF 4.2 Q2 BUSINESS
Danish Ahmed, Xie Yuantao, Umair Saeed Bhutta
{"title":"Insurers' risk management as a business process: a prospective competitive advantage or not?","authors":"Danish Ahmed, Xie Yuantao, Umair Saeed Bhutta","doi":"10.1108/ejmbe-08-2021-0221","DOIUrl":null,"url":null,"abstract":"PurposeInsurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).Design/methodology/approachThe authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.FindingsThe results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.Originality/valueTo the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.","PeriodicalId":45118,"journal":{"name":"European Journal of Management and Business Economics","volume":" ","pages":""},"PeriodicalIF":4.2000,"publicationDate":"2021-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"European Journal of Management and Business Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ejmbe-08-2021-0221","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 1

Abstract

PurposeInsurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).Design/methodology/approachThe authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.FindingsThe results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.Originality/valueTo the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.
保险公司将风险管理作为一种业务流程:是否具有竞争优势?
保险公司的存在是为了管理他人的风险,这就是为什么他们被认为在风险管理(RM)中具有竞争力。考虑到这一点,我们研究了不同的RM能力如何使保险公司在RM中有效。这些能力包括了解保险公司的风险和风险管理(URRM)、风险识别(RI)、风险评估和分析(RAA)以及风险监控(RMON)活动。此外,在资源基础理论(RBV)和动态能力理论(DCP)的视角下,探讨了这些能力如何共同为保险业创造竞争优势。设计/方法/方法作者提出了保险行业的潜在变量RM模型,并使用结构方程模型(SEM)来检验假设。此外,作者还分别对模型拟合和不变性检验进行了验证性因子分析(CFA)和收敛效度和判别效度分析。结果表明,调查风险管理相关能力的保险公司直接影响其风险管理实践(RMPs)。此外,提高这些能力将使保险公司更有效地管理他人的风险。因此,RM作为一种业务流程将为保险部门带来竞争优势。这些发现得到了RBV和DCP提出的理论见解的支持。此外,该模型还遵循收敛性和判别性的效度截止值。原创性/价值据作者所知,这是第一个将保险公司的风险管理实践作为竞争优势来源的研究。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
6.90
自引率
0.00%
发文量
21
审稿时长
24 weeks
期刊介绍: European Journal of Management and Business Economics is interested in the publication and diffusion of articles of rigorous theoretical, methodological or empirical research associated with the areas of business economics, including strategy, finance, management, marketing, organisation, human resources, operations, and corporate governance, and tourism. The journal aims to attract original knowledge based on academic rigour and of relevance for academics, researchers, professionals, and/or public decision-makers.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信