Hybridization of Risk Cultures and Enterprise Risk Management in Insurance Sector

Abstract

This study investigates how institutional pressures influence the development of risk culture and the maturity of Enterprise Risk Management (ERM) in the Indian insurance industry. Using institutional theory as a lens, it explores how coercive regulations, normative standards, and mimetic practices interact to create hybrid risk cultures within insurers. Based on a multiple case study approach incorporating surveys and expert interviews, the findings reveal the coexistence of compliance-based, defensive, calculative, and cognitive risk cultures, with significant differences across public, private, and multinational firms. While regulatory oversight drives minimum compliance, international exposure and professionalization encourage more adaptive and strategic approaches to risk. The paper contributes to scholarship by conceptualizing the hybridization of risk cultures in emerging markets and extending institutional theory to show how global frameworks are reinterpreted in local contexts. Practically, it emphasizes that ERM effectiveness depends not only on regulatory adherence but also on embedding risk awareness and accountability throughout organizations. These insights hold implications for regulators, legal experts, and practitioners aiming to balance governance, accountability, and resilience in the insurance sector.