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.

INSURANCE CARRIERS, Analysis, Planning, Downsizing (Management)

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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.

Human resource management, Property and casualty insurance, Corporate reorganizations

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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.

Direct Property and Casualty Insurance Carriers, Fire & Theft Insurance, Business insurance, Homeowners' insurance

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