A Snapshot of Success in the Insurance Industry

This month's Case Study comes from a publicly traded insurance holding company employing more than 400 people. Leaders are able to clearly describe the organisation's culture and their expectations of employees. They also describe how employees can achieve success within the culture.

These two factors-culture and expectations-are equally important, as our study of America's Most Productive Companies illustrates. Culture is an important driver of worker behavior, and it is a powerful tool for focusing the workforce on achieving the results that the organisation wants. As this Case Study illustrates, you cannot have one without the other.

The Company
The organisation has been publicly traded since 1986 and consists of wholly owned subsidiaries. Although it began in one specialty, it has added other property/casualty lines over the years.

Leaders designed the company with the goal of minimizing administrative burden on the underwriters in order to generate underwriting profit. The organisation does not pressure its underwriters to hit goals, but to reach targeted returns for each line of business. Rewards follow for workers who achieve those returns.

How the Practice Works
Underwriters must understand the nature of the market. This is especially important for managers, who are empowered and motivated. Employees work toward common goals and interests and communicate clearly with each other. They celebrate successes, and openly discuss concerns and management tactics in the face of external issues.

The company is cost conscious. As is characteristic of AMPC companies, managers discuss bringing on new employees, establishing new units, and supporting employees. Managers recognise that people are the most important factor in the company's success. AMPC companies ensure success by using clear job descriptions and goals that articulate the organisation's mission and vision. This way, every worker knows what needs to be done and how, and two people are never doing the job of one.

Employees are "best in class." The company hires the best and has a culture of continuous improvement.

Clear communication is crucial. Orientation includes general information about corporate communication and organisational technology. Leaders don't just talk at employees-they invite feedback. Leaders maintain contact with employees through a quarterly employee conference call, and the quarterly newsletter goes beyond birthday and anniversary greetings by including a section that details the most recent IT tools. The organisation employs proprietary online distribution systems for brokers and agents as well as for potential customers. Video conferencing also improves communication.

Summary
The organisation has grown its successes by increasing its products, establishing a strong connection with brokers and agents, and insisting on disciplined underwriting. The result was a growth in book value in 2008, even at a time when others in the industry saw great losses. As with many AMPC companies, this organisation's clearly articulated culture, paired with its flexibility, help it deliver what its customers need.