Impact of Corporate Governance Practices in Life Insurance Sector of Pakistan

Abstract

Purpose

This research aims to identify how corporate governance techniques influence the development levels in Pakistan's life insurance sector. A key focus of the study is the interplay between the development and expansion of the life insurance business and the principles of corporate governance.

Methodology

This is a quantitative study. Data was gathered from Pakistani insurance firms using a cross-sectional survey with a sample size of 400 respondents. Structural Equation Modeling (SEM) was the primary technique for data analysis. The results suggest that customers, investors, and other stakeholders can develop trust and awareness through effective corporate governance processes.

Findings

An assessment of the overall fit of the statistical model indicates a good fit, as all metrics fall within acceptable ranges. The regression analysis shows that all independent variables (V1, V2, V3, V4) have a statistically significant relationship with the dependent variable (Banca). The standardized regression weights (SRW) suggest that each variable positively influences the Banca, meaning that as these variables increase, so does the Banca.

Conclusion

The study concludes that strong corporate governance procedures in insurance companies increase the likelihood of conducting business transparently and ethically, which fosters customer trust and awareness. Additionally, such businesses may improve customer access to insurance products through enhanced risk management and financial stability.