A Study on Ethical Investment Behaviour among Malaysian General Insurance Fund Managers

Abstract

The purpose of this paper is to investigate the Ethical investment behaviour and predictors which is relatively new field of study among a General Insurance Fund Manager in Malaysia in order to refine in an ethical behavioural scope. A questionnaire-based survey was used to collect data from fund managers and insurance asset managers who are working in all 52 companies of general insurance in Malacca and Negeri Sembilan states of Malaysia.Throughout this research, there were three major aspects investigated namely personal, social and demographic factors of General Insurance Fund Managers who were involved in investment activities. However, the major findings showed that social factors had played the biggest effect in conducting ethical investment behaviour in the insurance industry. Hence, other factors, for example, personal factor and demographic factor had significantly affected the General Insurance Fund Manager's ethical investment behaviour and had directly given greater impacts to the performance of a socially responsible investment.Nonetheless, the implications of this study would be able to assist general insurance fund managers to determine the right directions and intentions of placing the funds and to manage it in an ethical manner. This study could also be used as a benchmark for specific investment activities because an ethical source was a main criterion to manage the clients' funds and income in a good way. Furthermore, the findings offered valuable insights to policy makers in general insurance and to the consumers on the significance of the results.