An assessment of corporate entrepreneurship in the life insurance sector

Abstract

This study aims to examine corporate entrepreneurship within the insurance industry, with specific reference to Old Mutual Retail Affluent within South Africa. An overview of Old Mutual South Africa is given with specific focus on history and operating environment of the organisation. The factors that emphasises the need for corporate entrepreneurship within the insurance industry is the growing demand for solutions that break the cycle of annual insurance renewals, the emergence of new exposures, and the approach taken by organisations to analyse risk on a more comprehensive basis. In general the fast changing operating environment and the fact that Old Mutual operates in an extremely regulated environment highlights the importance and need for corporate entrepreneurial strategies. In the turbulent and dynamic economic environment of the twenty first century, as well as the constant changes within large and established organisations like Old Mutual, makes it imperative for these organisations to establish and maintain a competitive advantage. Literature has proved that large and established organisations can only do this by being entrepreneurial in all spheres of the organisation. The middle manager is the catalyst that must evoke entrepreneurial behaviour as well as to foster an entrepreneurial climate in the organisation. A comprehensive literature study was conducted, which was followed by an empirical study. By means of self-assessment perceptions of middle managers were tested in relation to entrepreneurial characteristics. Based on the findings of the empirical study and the insight gained during the literature study, recommendations were made on the fostering of entrepreneurship within large organisations. An analysis is made of perceptions regarding the presence of constructs of a climate of corporate entrepreneurship as well as constructs indicating the success of the organisation. Furthermore, the effect of demographical variables on recorded perceptions is interpreted. Several recommendations are made in order to improve the entrepreneurial climate within Old Mutual Retail Affluent as it will contribute to the creation of increased organisational commitment and the future economic performance of the organisation.