New Evidence in the Definition of Strategy for Global Insurers
Economics Bulletin, Vol. 36 No. 3 pp. 1829-1843, September 2016.
16 Pages Posted: 22 Oct 2016
Date Written: September 29, 2016
The article shows how multinational corporations in insurance compete in the risky and complex global arena after the financial crisis, providing a conceptual model linking key cross-border operational drivers to international strategies; drawn largely from public data and qualitative interviews made to managers with involvement in the strategy of insurers throughout Asia, Europe, Latin America and USA. The existing literature justifies the different international strategies of multinational insurance companies on external factors in the creation of value, which are somewhat away from the reality of their decision-making processes. This research leads us to focus the formulation of the strategy on more concrete business drivers, with the specific goal of generating cash-flows and create shareholder wealth. It concludes that, by following the framework described, managers can rethink where to compete globally, and scientists can add conceptually to the current body of knowledge in insurance through new research on corporate strategy.
Keywords: business drivers; global strategy; insurance industry; value creation
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