Page 258 - Performance Leadership

Chapter | 13

THE INSURANCE

PERFORMANCE NETWORK

There are worse things in life than death. Have you ever spent an
evening with an insurance salesman?
—Woody Allen

Trends in Insurance: Multistakeholder
Collaboration

Insurance is often regarded as a dull industry, but from a business
model perspective nothing could be further from the truth. The health
of the collective insurance industry has a material impact on society,
and as such, the industry is highly regulated. Also, in delivering the
insurance product itself, multiple parties are involved. Risks are rein-
sured with other insurance companies. In many countries, there is a
trend not to reward claims with cash, but “in kind.” For instance, insur-
ance companies replace or repair the damaged, broken, or stolen
insured goods instead of paying out money. Insurance becomes a mass
customization product. With some insurance companies, customers
can go online, tailor the exact coverage they wish from a large number
of categories, and buy the insurance on the spot. At the same time,
insurers still control their business in a very hierarchic way, instead of
optimizing their performance network.
Figure 13.1 shows a typical performance network of an insurance
company.

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