Management Perspectives
The following Case Study will deal with QBE Insurance, revealing and discussing its organizational structure, strategies, role and legitimacy of management and also about the role of ethics and ethical practices.
QBE Insurance is one of the biggest insurance companies in the world with headquarter in Sydney. It works in all main insurance markets with general number of employers 14 500 people in 37 countries of the world. The company is listed in top 20’s largest insurance and reinsurance companies of the world. The major strategy of the company is that how they define it, to bring really truly service of one of the biggest insurer to the world. The ways to gain this QBE Insurance lists as the following as to be committed to their quality and claims performance and at the same time to continue to invest resources in strategic growth and operational initiatives. At the same time Insurer claims that they have their own unique company culture which goes from 6 main values and effective risk management.
But is everything so smooth and clear about QBE Insurance? Let’s find out if it has any limitations in organization of the company. As each company, this Insurer is also has its limitations. To mention some of them is that company still hasn’t reached its full volume which they can execute. So now, their main aim is to gain ongoing transformation and growth. What they want to achieve and where they still have limits is the outcome from company’s customers, staff and shareholders. In order to fulfill that and make strength from limitation, the company implemented new purpose and vision of the company which are totally oriented on interaction and cooperation with their people.
QBE Insurance is utilizing appropriate strategies in its work to fulfill desirable results. Their basic strategy is that of to keep their operations in the main operations markets of insurance and wherever it is up to be the lead underwriter for definite lines of business. Also the company has a strategy of diversification of their products and geographical exposition. The following strategy is basic to handle insurance and reinsurance risks and is vital of the company’s success.
As for the ethics and ethical practices of the company, they have a special Code of Business Ethics and Conduct which it crucial to obtain by each member of the Group. QBE Insurance has set a new vision in 2012, as it was mentioned before, and due to its vision was made this document on Ethics. It is of such a big significance because they believe that the main purpose of the company, that of to become a world Insurer leader in the sphere is possible to achieve only if everyone will be committed and dedicated fully into the company’s idea. The Code of Ethics of the company is based on their 6 basic values and is the essential manual to all workers. It involves a number of business ethics of the company and standards of conduct. QBE Ethics Statements are: first of all, to keep the promises to their client and employees. QBE employees have to be honest, professional, and considerate. They have to treat clients with respect, honesty and integrity. By ethical standards of the company, the staff is considered to show high ethical behavior and to keep the reputation of QBE Group. It case if it will be shown, they have to report unethical and illegal behavior. QBE’s Code of Business Ethics and Conduct is full and conveys the main standards that should be kept in the company. It is obvious that the company of such a high level expects ethical and moral behavior from their employees; has its own standards of behavior which respond to the kind of business they lead. It is important for the company to have such a Code. The company Code is based on 6 main values, which convey the acronym ONE QBE:
- Open-Minded
- Networked
- Empowered
- Quality Approach
- Business Acumen
- Excellent Outcomes
These are the common values for all QBE Insurance Group divisions all over the world and all employees of the company should be driven by them.
The key process in QBE Insurance Business is working with clients and this role is performed by the management of the company. Relationship Management is the main point of contact with company’s client. The key function of which is to provide the correct and relevant information about the company products as well as to search for the solutions for the problems or questions which can arise during the working process. By doing successful management, QBE establishes successful partnership. The company’s Sales and Relationship Management is based on particular company culture which is oriented on positive results and positive share of ideas. The management of the company has to be intelligent. QBE’s Management shares collaborative approach of work, which outlines once again that they work all together. Due to the big variety in products, there are many standard roles in QBE’s management:
Business Development Manager
Business Relationship Manager
Insurance Specialist
Distribution Manager
Sales Consultant
As the management is greatly impacted by politics and social environment, the business must learn it and adapt, because otherwise it will not survive. In the case with QBE Group, they deeply depend on society, thus they have to learn their preferences, along with needs and wants. The last are based on the beliefs and values of the particular society. The following group is acting in the international society and it is important for this company to learn and respond to the values of each society where they operate the business. Another big role in management function plays social changes in the society. From one hand, they can be dangerous, but from the other, if the company respond correctly and learn about them, they can be a new perspective opportunity for the management and business overall. In QBE’s, for example, opening of new insurance proposals and possibilities for clients can be a benefit from social changes in society. To be aware of political and social environment, for the company it is important to make PESTLE analysis, which stands for Political, Economical, Social and Technological factors. It shows the whole picture of environment, can indicate threats and possibilities of following business. As QBE functions in many countries of the world it is important to make this analysis for each particular country.
Regarding the qualitative analysis of the company, it includes business model, the place of the company in the industry, corporate structure and management. The analysis conducts to understand how company differs from the same in the industry and what are their advantages to survive in competition; how they earn money and relate to their shareholders. What is also included into the analysis is how they reward the workers, how they keep their partnership relations and whether they satisfy their client or not. Among the major rating factors of qualitative analysis of QBA are their Core Status and that all department are accountant to it, has a strong competitive position in insurance business in all over the world, the company has strong performance of operation and strong consolidated adequacy.
In the following Study Case it was evaluated famous Australian company, QBE Insurance Group. It is determined as one of the leaders in Insurance business and it operates in many countries of the world. The Group has much strength in its organization, it has its own Code of Business Ethics and Conduct, management is diversified due to many functions which it has to perform. The company has one common aim towards which they build their vision and strategies; they have 6 values on which the work is based. The main aim of QBE Insurance Group is to be the leader in its sphere, to be trusted by their people and to get success in work. They try to convey faith and honesty to their clients.
