Finance and insurance are unlike consumer-products businesses, where people will keep on buying when they feel pleased with a brand. With life insurance, if customers do not feel happy with a policy, they will feel better when agents regularly taken care them, forming a relationship.
To sustain such relationships between agents and consumers, the company will focus on long-term protection and long-term savings, that is, policies with terms of 20 years. Long-term policies account for 60 per cent of Thai Life’s premium income, so called Customer Lifetime Value (CLV).
In other words business momentum, market dynamics and management transparency are the common ingredients we all need to be able manage well. And to do that and keep the rhythm going we need good information routinely delivered in each business process. More importantly we need to be able have get the answers to the questions we ask that the information brings up with an easy ability to do deeper analysis without setting up a task force commission.
As to content and who reports what, to track what’s gone on and manage what’s being planned the performance management and planning and reporting process that the CFO team provides is vital. It is a must as well that it be timely, consistent and very reliable with well integrated and easy to understand reports that everyone involved can access and see.
Taking a high level view on that content can be good. This may typically be a ratio summary or dashboard with key performance measurement (KPI) of activity critical to success. Once that is well established the collaborative of use KPI reporting is very effective. But it can take some time to mature as the behavior we see in the detail is not always intuitive at first in KPI summary. For example in one businesses a late delivery signal on a KPI may indicate serious issues that have immediate loss of business consequences with sales retention and profit then at serious risk. Where-as in other businesses while it may still be important it is less of a risk and can be managed. This may even differ from product to product in the same business the underlying issues and impact to be addressed must understood well before a KPI view is set up.