Changes in the Life Insurance Industry: Efficiency, by Anthony M. Santomero (auth.), J. David Cummins, Anthony M.

By Anthony M. Santomero (auth.), J. David Cummins, Anthony M. Santomero (eds.)

Major demanding situations for all times insurance firms were posed by way of an exceptional wave of mergers and acquisitions within the assurance and the emergence of non-traditional rivals resembling banks, mutual fund businesses and funding advisory organisations. this can be the 1st booklet to research the determinants of multinational functionality within the lifestyles assurance by means of selecting the `best practices' hired via best insurers to reach this dynamic enterprise atmosphere. The e-book attracts upon info from insurer monetary statements in addition to upon an in depth survey of existence insurer administration practices and strategic offerings in distribution structures, details expertise, mergers and acquisitions, human assets and fiscal concepts. universal suggestions comparable to fee management, buyer concentration, and product differentiation are analyzed in addition to strategic practices particular to the assurance undefined. top practices are pointed out via measuring the commercial potency of insurers and by way of evaluating organisations around the undefined. either fee and profit potency are measured relative to most sensible perform effective frontiers along with the industry's dominant existence insurance companies. Economies of scale and the consequences of mergers and acquisitions on potency also are analyzed. monetary innovations are tested with particular connection with pricing coverage, valuation of resources and liabilities, and the present country of firm-level danger administration structures. The benchmarks demonstrated are the results of huge fieldwork that identifies key monetary hazards and methodologies to either degree and deal with them on the enterprise point.
the implications mentioned within the ebook point out that enterprise functionality is considerably correlated with administration practices and strategic offerings. hence, existence insurers can increase profitability through adopting optimum mixtures of thoughts. The publication comprises very important new fabric at the results of strategic offerings in product distribution platforms, details know-how, mergers and acquisitions, human assets, and monetary chance administration regulations. within the quarter of potency, the technique presents a brand new method for selecting peer teams of insurers and measuring the functionality of person insurers relative to their peer crew. at the subject matters of danger and pricing, new insights are provided relative to present methodologies and in regard to parts the place development is obviously warranted. The e-book concludes with an research of the long run possibilities and demanding situations within the lifestyles coverage dealing with managers, and the strategic ideas on hand to them to deal with those changes.

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Journal of the American Society of CLU and ChFC, July 1998. 2 THE INDUSTRY SPEAKS: RESULTS OF THE WFIC INSURANCE SURVEY James F. Moore and Anthony M. Santomero 1. S. life insurance industry. The purpose of the survey was to ask leading market participants to determine the drivers of relative firm efficiency and to query the industry concerning future trends. Specifically, the survey focuses on what set or sets of individual practices and strategies contribute to efficiency gains and lead to competitive advantage in this marketplace.

Table 2-4 gives the past and projected estimates for areas of discretionary spending. Respondents were asked to choose the five most important areas for discretionary spending and ranked them from 1 to 5. Areas not chosen were assigned a value of 6. Figure 2-2 presents these results graphically. The current and future number one choice for discretionary spending is product development. 91 Discretionary Spending Product Development Distribution Channel Development Improving Agency Productivity Development & Implementation of New Administrative Technology Remediating Portfolio Quality Problems Replacement of Legacy Systems Process Reengineering Point of Sale Technology Enhance Policyholder Service Asset Management Skills Acquisitions Development & Implementation of New Underwriting Technology Customer Research/Mkt.

Agents? Claims processing personnel? How much should we spend on technology? Some are operational: How should we allocate our technology spending? What role should technology play in our underwriting process? Our claims processing? Customer service? Others are strategic: What product markets should we focus on? What customer segments do we wish to target? How has our industry changed and, more importantly, how will it change in the future? The macro-data based studies provide little insight into these questions.

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