Wednesday, 30 November, 2011 4 Comments
It is very rare to read about meaningful innovation, from an insurer, that is about anticipating and responding to policyholder needs but that is exactly what FM Global appear to have done. Well done to FMG and I sincerely hope that they reap the reward of competitive advantage, that such a rare development merits. BUT I do have my concerns.
Whilst it is not for me to question if they know what they are doing…as far as offering protection and reassurance to their customers they undoubtedly do…I wonder about the timing. Perhaps they have overcome concerns about the current turbulence in the global economy OR have decided to pursue a bold strategy right out of the Warren Buffett handbook: “be greedy when others are fearful and fearful when others are greedy”, so plan to be perfectly placed to capitalise upon the lessons that must be learnt following another credit crunch – i.e. the realisation that price is only one metric and that risk management does not = resilience management! Read more of this post