Paper Title
Empirical Evidence of the Effects of ERM Implementation in a Non-Life Insurance Company in Albania (Case Study)
Abstract
Enterprise Risk Management (ERM) and capital allocation have gained more attention recently especially in insurance industry since insurers intend to manage capital costs through risk management. Previous studies have shown that ERM has helped insurers in improving the firm’s value through better risk-based decision making and capital allocation. This study investigates the case study of ERM adoption and ERM use within a non- life insurance company in Albania, the changes driven in the company from the adaption of ERM, and provides empirical evidence of capital allocation change process caused by the implementation of ERM in the context of insurance companies. An explanatory case study with interviews was used for the purpose of this research to offer empirical evidence on ERM implementation and the change in risk management routines within the company. The findings show that ERM has caused various changes in risk management practices such as capital allocation, underwriting and actuarial.
Keywords - ERM, non-life insurance companies, risk management, management practices, case study