EFFECT OF SUCCESSION MANAGEMENT PRACTICES ON PERFORMANCE OF INSURANCE FIRMS

Abstract

Purpose: The study aimed to determine effect of succession management practices on performance of insurance firms. Methodology: A desk-study method was adopted. Findings: A deliberate and methodical effort made by an organization to maintain leadership continuity in important positions, preserve and cultivate intellectual and knowledge capital for the future, and stimulate individual progress is what we mean when we talk about succession planning. Despite the fact that research has demonstrated the significance of carrying out appropriate succession planning, a significant number of businesses continue to function without a defined succession plan. Our research aims to determine whether or not there is a correlation between the use of succession management methods and the level of performance achieved by insurance companies. Even though succession planning is critical to the success of a company, many businesses still don't make the effort to prepare for leadership transitions, which can have devastating effects on the business. In order to adequately prepare for executive changes, succession planning is strongly suggested for insurance businesses due to the features of these companies. Unique contribution of theory, practice and policy: The research suggests that organizations should implement replacement planning as well as succession planning since these two types of planning, when combined, can reduce the likelihood of a company failing to meet its financial obligations. It is critical for organizations to develop succession strategies that are robust and fully vested. It is important for companies to pay attention to the standard of education provided to employees who may fill future leadership roles.