MARKET INTELLIGENCE-DRIVEN STRATEGIES FOR RISK MITIGATION IN THE INSURANCE SECTOR OF PAKISTAN – A LITERATURE REVIEW

Abstract

The insurance industry in Pakistan is undergoing several challenges from fluctuating market trends and an unstable economy, among others. One critical factor that aggravates the situation is changing customer preferences. Many of these challenges place insurance companies under increased risks as far as profitability, regulations, and market competition are concerned. The condition worsens by ineffective integration available from market intelligence, resulting in wrong decisions, growth opportunities missed, and even potential financial losses. This study examines the contribution of market intelligence toward risk mitigation in the insurance industry of Pakistan. With real-time data analytics, consumer behavioral insights and competitive benchmarking, market intelligence has become an indispensable tool for maneuvering through the maze of complexities in modern markets. The uptake and usage, however, have been limited in the context of the insurance sector of Pakistan, where companies find it difficult to integrate what is termed conspicuous intelligence in planning and risk management frameworks. This research is prompted by the growing global dependence on data-driven decision-making, proving to be significantly risk-reducing and increasing operational efficiency in insurance markets. This study aims to fill a critical gap in localization within localized market intelligence practices leading to the possibilities of insurance providers detecting changes in evolving risks, predicting market trends, and aligning their strategic responses.