Dynamic corporate management - maintaining solvency over time

Document description

If we consider the personality profile of a typical insurance company manager, (s)he is likely to be task oriented, with a short-term perspective and a tendency to be pragmatic. Over-anxious to find solutions, (s)he will make decisions before understanding the problem or the implications of what is decided. It is then little wonder that the industry has the problems that it does. An idealistic, visionary leadership which sees through the ups and downs of the cycle to the real needs of the customer might generate some immunity from the worse excesses of price competition. If it is true that 'people will always need insurance', we really have no excuse for losing so much money. The primary purpose of this paper is to lengthen the horizon of thinking about the business so as to encourage realistic decision making that will create sustainable advantage without first crippling the balance sheet. The golden rule is that there are no golden rules so do not expect to find all the answers but try to answer the questions we pose.