“Examining the Relationship Between Governance Structures and Financial Viability in Health Insurance Companies – An Empirical Study”

Abstract

Corporate governance is very critical in determining the financial integrity, accountability and long-term sustainability of organizations especially in highly regulated and stakeholder sensitive sectors like health insurance. The relationship between financial performance and governance structures in India's health insurance business is the subject of this research. In this study, 110 participants were interviewed, including board members, CEOs, finance heads and senior managers. The purpose of the research was to use descriptive and correlational analysis to determine how corporate governance practices, audit committees, internal controls, risk management and transparency affect the financial health, stability, longevity and trustworthiness of businesses.

Findings have shown that the correlation between the variables of corporate governance and the financial variables are poor and negligible in terms of statistical significance, indicating that the governing mechanisms, although theoretically fundamental, are still not successfully affecting the financial performance of the research companies. The results suggest that more robust implementation, connection of risk management with the governance processes, and adequate communication with stakeholders should be used to convert the governance frameworks to concrete monetary and organizational gains. The research addresses a significant gap in research as it is the health insurance industry that the governance-performance literature usually does not cover and provides the policymakers and practitioners with the opportunities to engage in strategic planning in an effort to align the ethical governance with profitability and resilience.