Developing enterprise risk management model: the case of the Palestinian insurance sector

Abstract

The insurance sector, being one of the most prosperous sectors in developing countries, has been immersed in continuous changes to adapt to the new global economic environments and business safety requirements. However, there seems to be scarcity in the current literature of empirical studies to investigate the prerequisites of a healthy risk management model for insurance organisations in developing countries. This paper is an attempt to develop a risk management model for insurance organisations operating in the context of the developing country of Palestine. An exploratory qualitative study using semi-structured interviews, archival documents and observations were adopted in this research inquiry. Data were analysed using thematic analysis approach. Although data analysis show that Palestinian insurance organisations' managerial practices are relatively in regulatory compliance with risk management practices, the results highlight the necessity of providing a supportive organisational culture and capacity building functions to provide highly qualified insurance professionals as a corner stone for insurance companies' competitiveness in developing countries. The developed managerial model is important as it identifies the determinants of a successful enterprise risk management realisation that will help the insurance companies in developing countries context to improve their strengths and maintain a sustainable growth.