Open challenges for the (mutual/cooperative) insurance sector

OPEN CHALLENGES FOR THE

(MUTUAL/COOPERATIVE) INSURANCE SECTOR(MUTUAL/COOPERATIVE) INSURANCE SECTORJaime Urcelay

Professor of HR and CSR (CE. Garrigues – Madrid)

Managing partner at TantoQuanto

Madrid, Spain

10-11 October 2011

Consolidation and

universalization of the

CSR movement

Changes in management

2

Financial crisis and

collapse of trust


and business models

Consolidation and

universalization of theuniversalization of the

CSR movement

� Paradoxes in the CSR movement.

� The CSR is no longer an exclusive approach of social economy companies. General acceptance of the link between CSR and business competitiveness and long-term sustainable development

Consolidation and


CSR movement

OVERVIEW

business competitiveness and long-term sustainable development of our world.

� Consolidation of CSR good practice in all sectors and company sizes.

� Political momentum and stabilization and coordination of CSR standards and indicators.

4

� The CSR is inherent to mutuality.

� Taking care of the mutual / cooperative culture of our business as a differentiating advantage in the new environment.

OPEN CHALLENGESConsolidation and


CSR movement

� To value and develop CSR policies and practices: manage, measure and communicate ICMIF Report 6 key areas.

� Imperative of excellence in management for mutual / cooperative insurers. Quality / Efficiency operations to meet the first CSR condition: to be a good company.

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Changes in managementChanges in management

and business models


and business modelsOVERVIEW

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2. 1. Digital revolution and the

social networks

“We are in a very, very primary state in digital revolution.

We are overestimating the short term and

underestimating the long-term. The long-term effect is

that the digital revolution will change the governments


and business models

that the digital revolution will change the governments

and markets completely . The change will be so deep

that we can not even imagine at the moment and this

can happen in 50 years, I do not know when exactly.

Joichi Ito, MIT Media Lab Director, El País 10/07/2011

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2. 2. “War for talent”Changes in management

and business models

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2. 3. Customers and other

stakeholders in the Era of

Collaboration

� Markets are conversations: customer intelligence, interaction, partnership, networks…

� Innovation comes mainly from abroad.


and business models

� Innovation comes mainly from abroad.

� The volatility of the environment requires an ability to adapt quickly: tailored offers and adapted to customers and segments, pricing policy, product development, new channels ...

� The new value of the brand reputation.

2. 4. The new management

1. Ensure tha the work of management serves a

higher purpose.

2. Fully embed the ideas of community and

citizenship in management systems.

3. Reconstruct management’s philosophical

foundations.

4. Eliminate the pathologies of formal hierarchy.

5. Reduce fear and increase trust..


and business models

5. Reduce fear and increase trust..

6. Reinvent the means of control.

7. Redefine the work of leadership..

8. Expand and exploit diversity..

9. Reinvent strategy making as an emergent

process.

10. De-structure and disggregate the organization.

Fuente: Gary Hamel, Moon Shots for Management, HBR, February 2009.

� Leading from the Culture and shared values.

� The human team as a priority.

� A new leadership style: open, participatory, distributed…

service focused.

OPEN CHALLENGESChanges in management

and business models

service focused.

� Defining new models of relationships with stakeholders,

integrated CSR approach.

� CSR as a platform for innovation.

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Financial crisis and Financial crisis and

collapse of trust

� Gaps and limitations of the current economic and business

model.

� A loss of trust in the markets that fully affect the financial

OVERVIEWFinancial crisis and

collapse of trust

sector and, in some countries, insurances.

� The new emerging social values .� Insurance, a key factor for the safety and welfare.

� Where are we at CSR, where are we going?

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� Our first responsibility is the human being and its dignity. No

choice.

� Review the basics of CSR: ethical sense of economic activity.

What is the purpose of our companies?

OPEN CHALLENGESFinancial crisis and

collapse of trust

What is the purpose of our companies?

� Insurance companies: the need for a CSR focused in products,

inserted into the value chain.

� The new role of mutual / cooperative insurance.

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Consolidation and


CSR movement


16

Financial crisis and

collapse of trust


and business models

The challenge of humanization of the economy makes mutual /

cooperative model a paradigm of an integral culture of

excellence, able to balance economic efficiency and social and

CONCLUSION

excellence, able to balance economic efficiency and social and

environmental performance.

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Thanks!

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Open challenges for the (mutual/cooperative) insurance sector