The European insurance market is facing major changes that continue to evolve – especially in the supervisory and regulatory environment. At the same time, increased competition, an expected market consolidation and volatility of the capital markets require insurers to make significant improvements to their efficiency. Performance management is a concept designed with a view to improving the performance of an insurance company continuously.
The main focus of performance management is to increase support for decision making and boost value contribution for the management team. This will allow an insurance company to link its strategy with the effective execution of that strategy and to align the employee incentive scheme with the company’s objectives and key performance indicators (KPIs).
There are three important tools that help insurance companies to manage their performance and these are described in detail in this white paper.