Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders
The insurance company is a financial intermediary between stakeholders - a set of participants in the insurance process and those who have received the right to insurance payment, as well as insuring parties who purchase insurance coverage and shareholders whose capital is involved in its guarantee....
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| Format: | Article |
| Language: | English |
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National Research University Higher School of Economics
2020-03-01
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| Series: | Корпоративные финансы |
| Subjects: |
| _version_ | 1818037449308241920 |
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| author | Lyudmila Tsvetkova |
| author_facet | Lyudmila Tsvetkova |
| author_sort | Lyudmila Tsvetkova |
| collection | DOAJ |
| description | The insurance company is a financial intermediary between stakeholders - a set of participants in the insurance process and those who have received the right to insurance payment, as well as insuring parties who purchase insurance coverage and shareholders whose capital is involved in its guarantee. Satisfaction of stakeholders creates a company’s free access to exchanged resources, thereby optimizing operations and increasing the efficiency of capital use. The implementation of the Total Quality Management (TQM) system, which could help achieve the goal, is complicated in insurance companies by dividing the personnel who create the insurance service, by the factor of time, since it is possible to check the quality only after the client has used it, which does not always arise in insurance, and often by the factor of location of units at geographically different points, which makes it virtually impossible for the simultaneous and equal participation of personnel in production processes, that requires innovative management tools.The purpose of this study is to study the effect of introducing a Total Quality Management (TQM) system and a balanced scorecard (BSC) on the activities of an insurance company, including the one aimed at achieving the satisfaction of its stakeholders.Using the methods of induction and synthesis of freely available data of SOGAZ, Rosgosstrakh, and ROSNO companies, a complex of dependent corporate goals was identified that were ranked relative to the organizational level.The results of the study allow concluding that the concept of balanced indicators allows to indicatively monitor the quality of meeting the interests of the main stakeholders of the company, which creates new effective tools for improving resource exchange and does not allow distortions in management. The integration of strategic planning and TQM opens up new market growth opportunities for insurance companies in the context of a limited portfolio of services for a strictly limited audience. The paper provides specific recommendations for organizations to resolve problems that impede the successful implementation of TQM.The results of this study can be used by officials of insurance companies in developing strategies and tactics for their development, including the implementation of BSC and TQM, as well as scientists for a deeper study of the results of the implementation of BSC and TQM, both in the insurance industry and other sectors of the economy. |
| first_indexed | 2024-12-10T07:27:01Z |
| format | Article |
| id | doaj.art-08fe8da78d074aa69bd855cf6b5cb692 |
| institution | Directory Open Access Journal |
| issn | 2073-0438 |
| language | English |
| last_indexed | 2024-12-10T07:27:01Z |
| publishDate | 2020-03-01 |
| publisher | National Research University Higher School of Economics |
| record_format | Article |
| series | Корпоративные финансы |
| spelling | doaj.art-08fe8da78d074aa69bd855cf6b5cb6922022-12-22T01:57:40ZengNational Research University Higher School of EconomicsКорпоративные финансы2073-04382020-03-01141395410.17323/j.jcfr.2073-0438.14.1.2020.39-54Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of StakeholdersLyudmila Tsvetkova0https://orcid.org/0000-0002-9851-3984PhD in economics, Associate professorDepartment of Risk Management and Insurance, MGIMO University Russia, Moscow, RussiaThe insurance company is a financial intermediary between stakeholders - a set of participants in the insurance process and those who have received the right to insurance payment, as well as insuring parties who purchase insurance coverage and shareholders whose capital is involved in its guarantee. Satisfaction of stakeholders creates a company’s free access to exchanged resources, thereby optimizing operations and increasing the efficiency of capital use. The implementation of the Total Quality Management (TQM) system, which could help achieve the goal, is complicated in insurance companies by dividing the personnel who create the insurance service, by the factor of time, since it is possible to check the quality only after the client has used it, which does not always arise in insurance, and often by the factor of location of units at geographically different points, which makes it virtually impossible for the simultaneous and equal participation of personnel in production processes, that requires innovative management tools.The purpose of this study is to study the effect of introducing a Total Quality Management (TQM) system and a balanced scorecard (BSC) on the activities of an insurance company, including the one aimed at achieving the satisfaction of its stakeholders.Using the methods of induction and synthesis of freely available data of SOGAZ, Rosgosstrakh, and ROSNO companies, a complex of dependent corporate goals was identified that were ranked relative to the organizational level.The results of the study allow concluding that the concept of balanced indicators allows to indicatively monitor the quality of meeting the interests of the main stakeholders of the company, which creates new effective tools for improving resource exchange and does not allow distortions in management. The integration of strategic planning and TQM opens up new market growth opportunities for insurance companies in the context of a limited portfolio of services for a strictly limited audience. The paper provides specific recommendations for organizations to resolve problems that impede the successful implementation of TQM.The results of this study can be used by officials of insurance companies in developing strategies and tactics for their development, including the implementation of BSC and TQM, as well as scientists for a deeper study of the results of the implementation of BSC and TQM, both in the insurance industry and other sectors of the economy.standardization and compatibilityinformation and product qualityinsuranceinsurance companiescompetitivenessstakeholdersquality management standards |
| spellingShingle | Lyudmila Tsvetkova Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders Корпоративные финансы standardization and compatibility information and product quality insurance insurance companies competitiveness stakeholders quality management standards |
| title | Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders |
| title_full | Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders |
| title_fullStr | Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders |
| title_full_unstemmed | Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders |
| title_short | Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders |
| title_sort | total quality management in an insurance company use of balanced scorecards to meet the interests of stakeholders |
| topic | standardization and compatibility information and product quality insurance insurance companies competitiveness stakeholders quality management standards |
| work_keys_str_mv | AT lyudmilatsvetkova totalqualitymanagementinaninsurancecompanyuseofbalancedscorecardstomeettheinterestsofstakeholders |