Tag Archives: insurance

 

Insurance Strategic Alliances Series : Part Two, Key Characteristics
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In Part Two of our Strategic Alliances Series, we will share some of the key characteristics that Strategic Alliances share in common.

  • Synergy

This is one of the most important characterizes of a successful strategic alliance. The organizations combined strengths complement each other, giving more strength to the alliance than they would have independently. In a good strategic alliance the whole is much more valuable than the individual parts to create the 1+1=3 results.

  • Win – Win

Each organization involved is looking out for the interest of the other organization and the alliance as a whole; resulting in optimal results.

  • Values and Goals

The companies have mutually compatible goals, rewards, and methods of operations. Strategic alliances with specific, concrete objectives, timetables, clear lines of responsibility, and measurable results are best positioned for potential success.

  • Commitment & Attitude

The organizations, their leaders, and various levels of the company are all committed and aligned in their efforts and understanding of the strategic alliance. There is also the commitment of the necessary resources in accomplish the alliance’s goals. The organizations in the alliance and the parties involved are able to communicate and cooperate well, and everyone has an equally cooperative attitude.

  • Growth Opportunities

The strategic alliance creates new opportunities for providing products/services to existing and possibly new ones. Other areas of the industry that were not previously viable are now potential opportunities.

Stay tuned to next week’s post, “The Types of Strategic Alliances.” Additionally, at the end of this series, we will provide a summary and link to the Best’s Review article “Getting Together.” In this article, Victor Castellanos and Arny Henkel discuss insurance strategic alliances, their value and formation.
 

Insurance Strategic Alliances Series : Part One, Introduction
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Today more than ever, it is important for companies in the insurance industry to find new ways to expand and gain entry to new markets and to create innovative products and services.  The combining of efforts, in the form of Strategic Alliances, serves as an effective way for companies to accomplish this.

According to ICMG’s “Strategic Alliances Survey 2011-12”, when seeking a new strategic alliance, “70% of insurance executives refer to their colleagues, and over half look for opportunities at insurance industry events and conferences”.

A Strategic Alliance is a synergistic relationship between two or more business entities where their combined efforts increase value and generate revenue for their clients and organizations. Such alliances often involve shared resources, shared knowledge and expertise, economic and industry specialization, and shared expenses and risk. By sharing their core competencies, the companies are able to leverage their resources to increase outcomes.

In this series, we will go over the characteristics of strategic alliances, the various types, the reasons they are formed, their benefits and challenges, and the stages of forming a strategic alliance. Stay tuned for more information on our blog, in the coming weeks.