Encountering Strategic Management and Corporate Governance Issues within a Turbulent Environment: Hayat Insurance Company

Encountering Strategic Management and Corporate Governance Issues within a Turbulent Environment: Hayat Insurance Company

Grace C. Khoury (Birzeit University, Palestine), Leila Amer (Birzeit University, Palestine) and Zein Khalaf (Anabtawi Group, Palestine)
Copyright: © 2014 |Pages: 19
DOI: 10.4018/978-1-4666-5067-1.ch003
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Abstract

This case study examines strategic management issues related to corporate governance and CEO-Chair duality, which have led to the use of power and family control of a very profitable and successful public holding company that dominated the insurance industry in Palestine for 20 years. It specifically describes the incidents that made Hayat Insurance Company (HIC) vulnerable and unable to choose the right strategies to cope with external threats, such as the rising competition and the developing regulations during the 1990s. With government interventions, the situation deteriorated, and HIC was dissolved. The selected solution, to liquidate HIC by selling its license to another insurance company, was thought to be for the best interest of the various stakeholder groups. The case is based on interviews with major stakeholders including insurance experts, shareholders, board of directors, former employees and managers, and government officials in various departments.

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