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.
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
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.
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!
Use Insurance Company Scorecard Template
BSC Designer helps organizations implement their complex strategies:
- Sign up for a free plan on the platform.
- Use the
Insurance Company Scorecard template as a starting point. You will find it in New > New Scorecard > More Templates. - 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!
- Climate change and home insurance resiliency, 2024, Deloitte Insights ↩
- 2024 global insurance outlook, 2024, Deloitte Insights ↩
- Navigating shifting risks in the insurance industry, 2024, Erwann Michel-Kerjan and Lorenzo Serino, McKinsey & Company ↩
- Strategic Planning in 2025-2026: Trends and Insights for Resilience, Alexis Savkin, BSC Designer ↩
- How top tech trends will transform insurance, 2021, McKinsey & Company ↩
- $50 billion opportunity emerges for insurers worldwide from generative AI’s potential to boost revenues and take out costs, 2024, Bain & Company ↩
- Top 10 insurance trends to watch for in 2025, January 14, 2025, Guenter Kryszon, Markel ↩
- ESG in Insurance: A practical guide to sustainability reporting, KPMG ↩
- Insurance M&A, 2024, Bain & Company ↩
Alexis is a Senior Strategy Consultant and CEO at BSC Designer, with over 20 years of experience in strategic planning. Alexis developed the “5 Step Strategy Implementation System” that helps companies with the practical implementation of their strategies. He is a regular speaker at industry conferences and has published over 100 articles on strategy and performance management, including the book “10 Step KPI System”. His work is frequently cited in academic research.