Balancing Acts

Insurance companies have to balance many operational activities simultaneously if their company is to successfully compete in the marketplace. But there are two major balancing acts insurance executives have to constantly maintain – and both of them involve keeping three plates spinning at all times, albeit at different speeds.

The first balancing act is keeping the cost control, compliance and profitable growth plates spinning. Too many times, insurers will take the pulse of recessionary times or even stable economic times and decide to keep the control and compliance plates spinning, letting the profitable growth plate falling to the hard ground and breaking into uncountable and unmanageable pieces. There are some insurers who decide to grind the profitable growth plate pieces into dust for fear of not getting the investments they need from new products, better customer service, or learning to leverage new or emerging technologies. These insurers we can label acquisition-bait.

The second balancing act is as important as the first balancing act, particularly for life insurers who keep policyholders for decades. This act is the need to balance the complete time horizon from the distant past (of when their oldest policyholders first came on-board as clients) to current time to the future. Life insurers have to continually offer products and services in the  ‘language’ and ‘tone’  expected by the policyholders. That means life insurers can’t expect their oldest policyholders to feel comfortable imprisoned in voice-mail jail or lost in the search maze of the firm’s web site.  On the other hand, insurers need to provide their Gen X and Gen Y policyholders – and prospects – with products and services delivered in all manner of web streams and capabilities.

Insurers must coordinate all aspects of commerce across time … and ensure that each policyholder group is served in a way that exceeds their expectations. And simultaneously, insurers must never let the ‘profitable growth’ plate spin out of control and crash into untold numbers of pieces.

Will insurers be able to maintain both balancing acts? What do you think?

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Published in: on August 31, 2009 at 5:20 pm  Comments (4)  
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4 CommentsLeave a comment

  1. I just came across your blog for the first time. I like the attitude.

    My axe is directed at insurance company operating, underwriting, and R&D philosophy. I believe same to be encapsulated in layers of stasis owing to “tradition” and a discouraging lack of creativity. For example, why not try offering personal automobile liability insurance with a small but significant self-insured-retention? Why not approach over-the-road truckers with an offer to help finance the purchase of proven collision avoidance systems. Why not spend some money to mitigate the effects of the wildfires that rage in the western states? It can be done with a positive economic balance.

  2. Cool site, love the info.

  3. Excellent site, keep up the good work. I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say I’m glad I found your blog. Thanks,

    A definite great read…

    -Bill-Bartmann

  4. Hey very nice blog!!….I’m an instant fan, I have bookmarked you and I’ll be checking back on a regular….See ya


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