Effectiveness of Insurance Coverage in Managing Business Interruption Risks in Morocco

Authors

  • Rachid Naciri

DOI:

https://doi.org/10.47604/ijmrm.2948

Keywords:

Insurance Coverage, Managing Business Interruption Risks

Abstract

Purpose: The aim of the study was to examine the effectiveness of insurance coverage in managing business interruption risks in Morocco.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: The study revealed that while insurance plays a crucial role in mitigating financial losses during disruptions, many businesses remain underinsured or lack adequate coverage tailored to their specific risks. The research highlights that although insurance can provide essential support in recovering from interruptions, the effectiveness is often limited by factors such as insufficient policy limits, lack of awareness among business owners, and gaps in coverage.

Unique Contribution to Theory, Practice and Policy: Prospect theory, risk parity theory & behavioral finance theory may be used to anchor future studies of effectiveness of insurance coverage in managing business interruption risks in Morocco. Practically, businesses should focus on several strategies to optimize the effectiveness of their insurance coverage in managing business interruption risks. From a policy perspective, several key recommendations can enhance the effectiveness of insurance coverage in managing business interruption risks.

Downloads

Download data is not yet available.

References

Anderson, R., & Lee, J. (2022). Effectiveness of insurance coverage in mitigating losses from natural disasters: A survey of SMEs. Journal of Risk Management, 35(2), 201-220. https://doi.org/10.1080/1465004X.2022.2056789

Australian Chamber of Commerce and Industry. (2022). Impact of COVID-19 on business continuity planning in Australia. Retrieved from https://doi.org/10.1016/j.jbm.2022.02.001

Brazilian Institute of Geography and Statistics. (2021). Business continuity in Brazil: A survey of practices during COVID-19. Retrieved from https://doi.org/10.1016/j.bra.2021.06.001

Brown, T., Smith, L., & Jones, M. (2021). The impact of comprehensive insurance on recovery times and operational disruptions: Evidence from large corporations. International Journal of Business Continuity, 28(1), 45-62. https://doi.org/10.1108/IJBC-12-2020-0091

Carter, P., & Davis, S. (2023). Cyber insurance and risk management outcomes: A case study approach. Cybersecurity Review, 42(3), 117-134. https://doi.org/10.1016/j.cysr.2023.01.004

Colombian National Disaster Risk Management Unit. (2022). Enhancing business resilience: Insurance and risk management practices in Colombia. Retrieved from https://doi.org/10.1016/j.cndr.2022.04.003

Dutch Ministry of Infrastructure. (2021). Flood risk management and business continuity in the Netherlands. Retrieved from https://doi.org/10.1016/j.dutch.2021.06.002

Ethiopian Chamber of Commerce. (2023). Business interruption insurance and risk management in Ethiopia. Retrieved from https://doi.org/10.1016/j.ecc.2023.03.005

Evans, J., & Wilson, M. (2020). Pandemic-related business interruptions: The role of specialized insurance coverage. Journal of Business Continuity & Emergency Planning, 14(2), 152-170. https://doi.org/10.1108/JBC-09-2020-0078

Federal Emergency Management Agency. (2022). National preparedness report: Trends in business continuity planning. Retrieved from https://doi.org/10.1016/j.npr.2022.01.004

French Ministry of Economy and Finance. (2022). Business continuity planning and insurance trends in France. Retrieved from https://doi.org/10.1016/j.jbm.2022.04.001

Garcia, R., & Martinez, A. (2022). Insurance and supply chain disruptions: A quantitative assessment of coverage effectiveness. Risk and Insurance Review, 27(1), 89-106. https://doi.org/10.1080/15453075.2022.2045479

German Federal Ministry for Economic Affairs. (2022). Strengthening business resilience: Insurance and risk management in Germany. Retrieved from https://doi.org/10.1016/j.jbm.2022.02.002

Ghana National Chamber of Commerce. (2022). Business interruption risk management in Ghana: A survey report. Retrieved from https://doi.org/10.1016/j.gncc.2022.04.002

Harris, D., & Thompson, R. (2021). Business interruption insurance and regulatory changes: Adaptation and effectiveness. Journal of Risk and Insurance, 89(4), 675-692. https://doi.org/10.1111/jori.12345

Indonesian Ministry of Disaster Management. (2022). Disaster resilience and business continuity: Lessons from recent earthquakes. Retrieved from https://doi.org/10.1016/j.ijdr.2022.09.004

Insurance Bureau of Canada. (2022). Business continuity and insurance coverage trends in Canada. Retrieved from https://doi.org/10.1016/j.jbm.2022.03.005

Italian Insurance Association. (2022). Business continuity planning and insurance trends in Italy. Retrieved from https://doi.org/10.1016/j.jbm.2022.02.001

Japan External Trade Organization. (2020). Business continuity in Japan: Lessons from the Tōhoku disaster. Retrieved from https://doi.org/10.1016/j.jbmb.2020.01.004

Johnson, H., & Brown, T. (2023). Industry-specific insurance solutions: A meta-analysis of effectiveness in managing business interruptions. Insurance Studies Quarterly, 32(1), 33-50. https://doi.org/10.1016/j.isq.2023.03.002

Johnson, R. T., & Lee, A. J. (2021). Resilience in the face of disaster: Business interruption management in the USA. Journal of Business Continuity and Emergency Planning, 15(1), 34-45. https://doi.org/10.1108/JBCEP-01-2021-0005

Kenya Agricultural and Livestock Research Organization. (2021). Climate risks and business continuity in the agricultural sector. Retrieved from https://doi.org/10.1016/j.kalro.2021.01.006

Mexican Institute of Insurance. (2021). Insurance coverage and disaster recovery: Insights from Hurricane Delta. Retrieved from https://doi.org/10.1016/j.mi.2021.05.003

Moroccan Association of Business Leaders. (2023). Risk management frameworks in Moroccan businesses. Retrieved from https://doi.org/10.1016/j.mabl.2023.01.004

National Disaster Management Authority. (2019). Kerala floods: Impact and business continuity planning. Retrieved from https://doi.org/10.1016/j.ijdrr.2020.101254

Nigerian National Petroleum Corporation. (2021). Risk management strategies in the oil and gas sector. Retrieved from https://doi.org/10.1016/j.ogm.2021.05.005

Philippine Institute of Disaster Risk Reduction. (2022). Typhoon recovery: Insurance coverage and risk management in the Philippines. Retrieved from https://doi.org/10.1016/j.pidr.2022.03.005

South African Chamber of Commerce. (2021). Impact of COVID-19 on business continuity planning in South Africa. Retrieved from https://doi.org/10.1016/j.jbm.2021.05.002

Tanzanian Ministry of Agriculture. (2022). Climate risks and agricultural insurance: A study of Tanzanian farmers. Retrieved from https://doi.org/10.1016/j.agri.2022.01.006

Thai Chamber of Commerce. (2022). Impact of COVID-19 on business continuity planning in Thailand. Retrieved from https://doi.org/10.1016/j.jbm.2022.05.007

Ugandan Business Association. (2023). Enhancing business resilience: A survey on insurance coverage in Uganda. Retrieved from https://doi.org/10.1016/j.ujba.2023.01.002

Zambia National Farmers Union. (2022). Climate risks and business interruption insurance in Zambia. Retrieved from https://doi.org/10.1016/j.znfu.2022.05.007

Downloads

Published

2024-09-21

How to Cite

Naciri, R. (2024). Effectiveness of Insurance Coverage in Managing Business Interruption Risks in Morocco. International Journal of Modern Risk Management, 2(2), 30 – 44. https://doi.org/10.47604/ijmrm.2948

Issue

Section

Articles

Similar Articles

1 2 > >> 

You may also start an advanced similarity search for this article.