How to evaluate information and build trust
Building and managing client relationships involves a significant investment
of time and resource. As we have seen in previous Masterclasses, increased
competitive pressures are forcing reinsurance companies to target new clients,
either in new territories or through new products. Therefore they are having to
forge new relationships, maintain more of them, and do so across more diverse
client portfolios. "One size fits all" relationship management is now
increasingly less likely to work.
In this Masterclass we show how reinsurers can manage their clients
strategically, so that the valuable time and resources invested support the
business strategy and 'pay off'; either directly, in the form of profitable
business deals, or indirectly, in the form of increased goodwill, or access to
information, the lifeblood of the reinsurance business.
Here we investigate how information in business relationships is tied up
with the concept of 'trust'. We draw on theories of inter-organisational trust
to demonstrate three distinct types of information and trust.
We then develop a framework that enables managers to distinguish clients
based on their economic value and the value of the information they can
provide. The framework identifies four distinct client relationship types, each
of which justifies different levels of investment in relationship management
and suggests different forms of client engagement.
Finally, we examine how the different types of information and trust are
generated in different forms of engagement with clients, such as 'road-show
meetings' or social events. Matching up client types with the appropriate forms
of engagement will ensure that the investment in relationships 'pays off'.
The compete Masterclass 5 file "Strategic reinsurance
relationships" can be downloaded via the link below.
This is the fifth in a series of seven Reinsurance Masterclasses. The first
four in the series can be accessed here.
Masterclass 6 will be released on this website shortly. Follow our Twitter
account for updates - http://twitter.com/CassKnowledge