Article Abstract:
The life insurance industry needs a new style of leadership to revitalize its marketing employees and agency managers. Managers need to replace transactional leadership, which focuses solely on results, with transformative leadership. Transformative leadership includes participation, inclusion and affirmation. Subordinates are made to feel important, feel in harmony with management, feel enthusiasm for corporate goals. Managers who adopt this methodology will see increases in employee retention and greater customer loyalty, which will improve bottom-line results.
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Article Abstract:
An analysis of the annual net return on investment of the portfolios of life insurers and the return on investment of Treasury (T) securities since 1965 indicates that life insurers overmanage their assets. The yield on life insurers' portfolios reached a high of 9.6% in 1985 and has been declining ever since, reaching 8.89% in 1990. Life insurance companies would have gained a better yield on their assets if they had invested in six-month T-bills, three-year T-bonds, 10-year T-bonds, or AAA corporate securities.
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Article Abstract:
The life insurance industry is stable and makes financially sound investments, despite what the forecasters of doom say. It makes conservative investments in low-risk real estate and in diversified assets. The industry makes sure that its liabilities are long term and predictable. Because of these practices, the life insurance industry stands little chance of experiencing a collapse such as the savings and loan industry experienced.
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