COMMON TARGET OF INSURANCE COMPANIES AND INTERMEDIARIES IS PROFITABLE GROWTH
The main principle never changes for all sectors and companies; to grow in sustainable and profitable way. All kind of commercial enterprises have to grow in changing and thriving market conditions. If all this performance is sustainable, the main company and its stakeholders are also gaining their share from this revenue and volume.
Suppliers of growing manufacturers, subcontractors of expanding developers, intermediaries of rising insurance companies can also be considered as stakeholders of these enterprises. If the main company and stakeholders will have new earnings from the results of good performance, it will be more effective for them to work together for this common purpose.
If the insurance company succeed sustainable profitable growth, its intermediaries, will gain the new customers, will get good service, will make renewals more effective, will have effective campaign and additional commission opportunities so their benefits will increase.
One of the important contribution of the intermediaries to insurance companies are their correct and guiding feedbacks. The feedbacks have to collect and evaluated carefully by the insurance companies and implemented which are appropriate . So reach the expectations become easier if the business is carried out together with the company and intermediaries
In some cases, companies could ignore growth for profitability. By the way it is important to remember the old senior insurance executives advice ”if you cannot grow up, you will disappear healthy”
Growth actions are generally made for to rise the current market share. The most common ones are price reductions and more flexible risk acceptance criterias. Although to increase premium volume is succeed, meanwhile side effects have to analyse carefully in medium and long terms . As I mentioned before “the basic rule for commercial enterprises is to keep the profit”
New insurance needs for social and technological progresses, occurrence of new sales channels, fast and effective operational processes with IT applications, rising of insurance awareness, etc. are emerging opportunities for profitable growth.
Today, just like in the past, new inventions and discoveries make great gains to individuals who find them. In the insurance industry; new methods- products, sales strategies, all kinds of innovations which companies implement effectively could increase their earnings. Recently, covers against cyber risks which are more widespread abroad and also surety insurance rapidly spreading in our country are some of new gaining fields created by new products.
If the companies make close collaboration with their intermediaries for the innovations, new products and market needs from the beginning. They can reach the expected goals easily. Consequently, if we want to change our current situation, we have to change something in our lives. As Albert Einstein mentioned in his famous saying “Do not expect the different results by doing the same things over and over again”
Rıza OYGUR
November 2018
