Published Online:March 2024
Product Name:The IUP Journal of Business Strategy
Product Type:Article
Product Code:IJBS010424
Author Name:Rohit Kumar
Availability:YES
Subject/Domain:Strategic
Download Format:PDF
Pages:12
The study examines the concept of sustainability in the context of insurance business and, in doing so, lists the different dilemmas that the CEO of an insurance company is likely to face. Based on literature review, study of best practices across various industries, and examination of secondary data sources from academic and practice-oriented outlets, the study proposes six strategic recipes for managing sustainabilityrelated dilemmas. It is proposed that acknowledging all the key dilemmas, making sustainability a boardroom agenda, revisiting and redefining the vision and mission statements, recalibrating business strategy using sustainability lens, developing a strategy and sustainability balanced scorecard (SSBS), and making structural changes, i.e., hiring and/or designating a Chief Sustainability Officer (CSO), can go a long way in aligning the insurance industry with the noble and global agenda on sustainability.
The insurance industry across the world provides financial indemnification for losses that arise due to unfortunate loss events, events that can be categorized under a risk category and financially measured. Firms within the insurance industry are able to do so by following certain principles, i.e., the principle of utmost good faith, indemnity, proximate cause, subrogation, contribution, insurable interest and loss minimization (Mishra and Mishra, 2011).