Tossing out the pink slips
Article Abstract:
Insurance companies that downsize by laying off agents generally do not reduce operating costs. This action usually leads to a reduction in revenues rather than an increase in profitability. Downsizing also reduces morale, which leads to a decline in both the quality of service and market share. A more effective way of increasing profitability is to concentrate on well-defined target markets, become familiar with the profit model and eliminate work areas that are not essential to achieving the corporate mission.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Tossing out the pink slips
Article Abstract:
Companies that attempt to boost a sagging bottom line by cutting personnel might actually continue to lose revenue. The experience of one insurance company indicates that this practice can erode morale to the point where remaining employees provide poor service and drive clients away. Companies that streamline operations can benefit more by concentrating on well-defined market segments. The use of 'rightsizing,' a proactive and continuous effort to assess department and staff requirements, is also important.
Publication Name: Best's Review Property-Casualty Insurance Edition
Subject: Insurance
ISSN: 0005-9714
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Homeowners insurance: doing well by doing good
Article Abstract:
Homeowners insurance has not been very profitable for many insurance companies and any attempt to review how they write homeowners insurance policies to boost profitability is viewed unfavorably by the general public which perceives insurers as unscrupulous. The two-tier system used by insurers in determining the policies they offer to inner city homeowners has also come under strong attack.
Publication Name: Best's Review Property-Casualty Insurance Edition
Subject: Insurance
ISSN: 0005-9714
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Taking the next step in hurricane modeling. Cycles and crises. In defense of rate regulators
- Abstracts: Keeping an eye on the competition. Learning a lesson
- Abstracts: Refuting the myths about mutual holding companies. Getting back to basics. Demutualization: charting a course
- Abstracts: Squeeze on profits. Sharing the liability: reversionary liability would allow assumption reinsurance to run smoothly by passing the policies, not the full responsibility