Published Online:March 2025
Product Name:The IUP Journal of Financial Risk Management
Product Type:Article
Product Code:IJFRM020325
DOI:10.71329/IUPJFRM/2025.22.1.35-51
Author Name:Srinivasa H T and K Venkidasamy
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:35-51
This study examines the significant influence of enterprise risk management (ERM) on the internal workings of Indian non-life insurance firms, concentrating on reporting methods, communication between departments, actuarial roles, and the changing responsibilities of risk management units. Grounded in a qualitative methodological approach, the study utilizes thematic analysis of secondary materials such as regulatory guidelines (IRDAI), industry reports, and insights from practitioners. The study examines how ERM frameworks, in accordance with IRDAI’s risk governance criteria, have transformed internal risk communication, bolstered strategic decision-making, and strengthened regulatory compliance. Main discoveries indicate that the adoption of ERM has resulted in the establishment of data-oriented risk reporting systems, greater actuarial participation in capital and solvency evaluations, and the elevation of chief risk officers (CROs) as strategic consultants. The incorporation of tools like solvency reporting, retention ratio evaluation, and risk dashboards has enabled a more proactive and comprehensive strategy for risk management. The study finds that ERM is not just a compliance tool but a strategic facilitator that enhances resilience, transparency, and sustainable development in India’s non-life insurance industry.
Enterprise risk management (ERM) has emerged as an essential framework for bolstering the resilience and sustainability of insurance firms in India.