Implementing Strategy of Insurance Company: Cascading into Scorecards and KPIs

The strategy of an insurance company is no longer defined by a single scorecard and a set of KPIs. Today’s trends demand a cross-functional approach, a deeper understanding of driving forces, risk and scenario planning, and seamless alignment between supporting functions and core strategies.

Key Facts about Insurance Strategy Scorecards Implementation

Global Trends and Their Effects on the Insurance Industry

Let’s explore the global trends shaping the insurance industry and their impact on insurance company strategies.

Driving Forces and Uncertainties

• The increasing frequency and severity of natural disasters challenge traditional insurance models.¹
• Changing consumer needs, with a growing focus on risk prevention rather than just risk coverage.²
• Financial risks due to fluctuating interest rates.³
• Increasing complexity in the stakeholder landscape and strategic planning.⁴
• Tech trends like AI and blockchain-based trust architecture. ⁵

Effects on the Insurance Industry:

• AI enables more accurate risk assessments.⁶
• A greater need for cybersecurity, data privacy measures, and compliance.⁷
• ESG criteria are becoming central to reporting and strategic planning.⁸
• Strengthening core insurance capabilities through M&A with technology providers.⁹

Cross-Functional Strategy Implementation: Example for Insurance Company

The driving forces mentioned above add layers of complexity and uncertainty to the business landscape. As a result, insurance companies are transitioning from ad-hoc strategies managed in spreadsheets to a more robust system of aligned strategic and functional scorecards.

Below, we outline the steps involved in implementing this approach within an insurance company.

Step 1: Define the Master Plan

The first step is to outline a high-level mission in the core strategy scorecard, often called the “Master Plan” or “Our Plan to Win:”

• Insurance Company Master Plan

An example of a master plan strategy map for an insurance company. Source: Insurance Company Scorecard.

This strategy scorecard is cascaded into sub-strategies, which are generally aligned with the organizational structure, such as:

• Life Insurance
• Property and Casualty (P&C) Insurance
• Health Insurance
• Claims and Policy Servicing
• Investment and Asset Management

Step 2: Create Functional Scorecards

Supporting scorecards can address strategic analysis, including

• External factors analysis and scenario planning
• Stakeholder analysis

They can also focus on specific functions:

• Cybersecurity
• Risk register to align global risks with specific objectives
• Sustainability scorecard to integrate ESG functions into the strategy
• AI governance scorecard for ethical AI use
• M&A scorecard for tracking potential acquisitions

The Master Plan and functional scorecards are connected through shared KPIs or contextual links.

Step 3: Build a Comprehensive Reporting Framework

Finally, strategic and functional scorecards are expanded into a performance measurement and reporting system that ties everything together.

The dashboard for an insurance company featuring key indicators and risks. Source: Insurance Company Scorecard.

Results Achieved

Adopting this strategy framework improves agility and transparency in strategic decisions. Key benefits include:

• Clear ownership of objectives and KPIs that enhance accountability.
• Faster, data-driven decision-making (reduced KPI reporting time).
• Better alignment between underwriting, claims, marketing, and IT teams.

Operational outcomes:

• Shorter time-to-market for new products.
• Greater focus on customer experience and personalization.
• Stronger risk management in underwriting and reinsurance.
• Deeper integration of sustainability principles.

Join BSC Designer under the free plan to start implementing a winning strategy for your insurance company today!

How Can We Keep All Teams Aligned?

To summarize the insights above, this section focuses on how insurers can coordinate strategy across different departments while keeping direction clear and consistent.

• Start with a shared strategic map – Define the core goals and value drivers that apply across the organization before going into departmental details.
• Cascade goals into each function – Let underwriting, claims, IT, risk, and others translate the shared strategy into their own measurable objectives.
• Use shared KPIs and linked risks – Show how one area’s performance affects another to support collaboration and informed decision-making.
• Support with a structured platform – Using a tool like BSC Designer helps maintain scorecards, links, dashboards, and updates in a consistent, transparent way.

Use Insurance Company Scorecard Template

BSC Designer helps organizations implement their complex strategies:

1. Sign up for a free plan on the platform.
2. Use the Insurance Company Scorecard template as a starting point. You will find it in New > New Scorecard > More Templates.
3. Follow our Strategy Implementation System to align stakeholders and strategic ambitions into a comprehensive strategy.

Get started today and see how BSC Designer can simplify your strategy implementation!

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Alexis Savkín

Alexis Savkin is a Strategy Implementation Architect and founder of BSC Designer, a strategy execution and Balanced Scorecard software platform. He helps organizations automate performance management and turn strategy into measurable results. Alexis is the creator of the “Strategy Execution Canvas”, the author of 100+ articles on strategy and performance measurement, and a regular speaker at industry events.