Investigating ERM Adoption and Implementation in Insurance

Abstract

A review of the extant literature of enterprise risk management (ERM) shows that an increasing number of insurers have an incentive to adopt and implement a holistic approach to risk management. Institutional catalysts for ERM adoption are investigated in this paper. As ERM adoption could not be driven only by the economic needs of a business, I expect systematic variation in the way the ERM is implemented and used to affect decision making within insurance companies. Particularly, this study focuses on the way in which various rationales for adoption affect the ERM implementation and usage within organizations. This research addresses the various forces driving ERM adoption within insurance companies, ERM implementation determinants, ERM strategies and models, and the challenges facing ERM implementation and embedding. A field study is conducted in ten large and medium-sized insurance companies for the purpose of this study.