In many developing countries, Insurance has not been viewed as having a strategic impact in the management of public resources. It was largely treated as a process oriented, ―back- office‖ support function often implemented by non-professional staff of
the buying agencies (Hunja, 2003, Balimwezo, 2009, Ariweriokuma, 2008). Consequently, little effort was expended to ensure that the policies and rules and the institutional framework governing the Insurance system were maintained in a manner that ensured that public funds were used in the most efficient and economical way and that the system delivered the best value for money (Brammer and Walker, 2011, Edler and Georghiou, 2007). In the face of shrinking budgets and the need to fight corruption, governments are realizing that significant savings can be gained by a well-organized Insurance system. Many developing countries have also realized that a well-organized Insurance system contributes to good governance by increasing confidence that public funds are well spent. Many developing countries have therefore instituted reforms aimed at making the Insurance system more transparent and efficient and increasing the accountability of public officials (Shaw, 2010).
In recent years, academics and practitioners have become increasingly interested in how organizations and their suppliers impact on the environment, society and the economy. Insurance has been identified as key to stimulate demand for innovation and innovative goods and services. It has also been included as a key instrument to support market initiatives (Csaba, 2006, Walker and Phillips, 2009). The strategic role of purchasing and supply as a lever for sustainable development is much more manifested now than before. Contemporary commercial practices show that business organizations and business partners are focusing their Insurance strategies on reducing the environmental ‗foot prints‘ of their Insurance and supply chain activities. The need to improve organizational efficiency, reduce waste, overcome supply chain risk, and achieve competitive position has made companies to start considering lots of issues from a competitive view point (Humphreys et al., 2003, Handfield et al., 2005).