You are the newly appointed Manager of TCM plc's commercial insurance team. TCM plc is a UK-based
Question:
You are the newly appointed Manager of TCM plc's commercial insurance team. TCM plc is a UK-based insurer. It underwrites a wide range of commercial insurance across many countries, including the US and India.
Over many years, TCM plc's corporate strategy has been to focus on profitable, niche business. TCM plc has pursued a strategy of modest growth and profitability for its other business.
Having reviewed the commercial lines operation, you conclude that for several years the focus has mainly been on profitability. This has led to a volatile and reactive approach to business, resulting in fewer niche business areas being pursued.
Your review also identified the following:
• Each country has its own management team with little central oversight.
• In most underwriting aspects of the business there is little consistency between different countries.
• Individual plans are produced by managers in each country.
• There is limited sharing of knowledge and information between countries.
• Training budgets are aligned to overall business success.
• The underwriting computer systems are country specific, with several systems being over 15 years old.
• Data is used and stored within each country solely to legislative and regulatory standards.
Following your review, you create a five-year commercial insurance business plan.
(a) Explain, with justification, three significant actions to align the commercial insurance business plan with TCM plc's corporate strategy.
(b) Recommend, with reasons, how the success of each of the actions you have explained in (a) above should be measured.
(c) Explain, with justification, two significant operational changes required to deliver TCM plc's commercial insurance business plan.
(d) Recommend, with reasons, how the success of each of the changes you have explained in (c) above should be measured.
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey