STRATEGIC DECISION MAKING IN PRODUCT AND SERVICES: A CRTICAL LITERATURE REVIEW ON LIFE INSURANCE SECTOR OF PAKISTAN

Abstract

In the life insurance field of Pakistan, strategic decision making is critical in determining the development, competitiveness and sustainability of the organizations. Regulatory changes, the digital age, demographic changes and increased competition have dramatically changed the industry and required more vigorous and progressive approaches. This is a critical literature review of the effect of product and service innovations, pricing strategy, distribution channels and customer-centric approaches in decision-making in the industry. It also examines how strategic decisions interact with organizational performance in terms of customer trust, market penetration and financial performance. Past literature reveals the difficulty of the profitability vs. customer protection, regulatory compliance, and the incorporation of technological innovations like artificial intelligence and digital platforms into the more traditional insurance formulations. Further, the literature highlights the need to be strategic and innovative and governed in responding to external uncertainties, such as economic volatility and the changing consumer expectations. Through the combination of the existing findings, the reviewed articles reveal the gaps in the literature and provide the directions of the future study, especially in the context of the integration of strategic decisions-making with sustainable development and inclusive finance. By and large, the paper highlights that strategic decisions must be informed when it comes to making sure that the life insurance sector in Pakistan is resilient and long-term viable.