Main Article Content
Background: The formal procedure and structure whereby the administration is held responsible to shareholders for its operations and objectives are known as corporate governance. The study's theoretical perspective reveals that effective corporate governance systems lead to favourable insurance companies results while also prohibiting fraudulent actions. CEO’s compensation, Communication approach, Code of conduct, and Companies governance system are among the study's free-spirited factors. Because corporate governance has a direct impact on insurance company performance, governing bodies must design robust corporate governance systems and rules for the industry ecosystem.
Objectives: The objectives of this study were to see if there were any linkages between governance practices and the performance of Indian insurance companies.
Methods: This research was based on randomly selected top five insurance companies as case study research to evaluate the relationship between corporate governance practices and insurance companies’ performance. In this regard, the case study research design suggests examining the influence of interactions between the study's two variables utilizing quantitative research methods. This research was conducted using practical methodologies, such as the use of qualitative and quantitative research methods and data collection techniques. Previous research and theoretical foundations of corporate governance have been undertaken using a qualitative research method.
Results: The sort of communication approaches, companies’ code of conduct, and governance structures all affect the performance of an insurance company, according to a statistical study. On the contrary, the performance of insurance companies is unaffected by CEO compensation structure.
Conclusions: The purpose of this study was to assess the relationship between corporate governance practices and insurance companies’ performance. Four significant variables have been defined in order to examine the study’s goals and objectives like the communication approach of the companies, code of conduct, governance structure and CEO’s compensation. Based on the empirical analysis of the study, except CEO’s compensation, all other variables have significant relationships and influence the companies’ performance. Furthermore, it has been evaluated that the effective form of communication approach used by companies is also important. Scheduled work and regular meetings are arranged on a timely basis, and good communication approaches are followed.