Strategic Plan. I. Introduction. Foundations a. Vision b. Mission c. Corporate Governance Policy d. Success Metrics. V.

Transcription

1 Strategic Plan I. Introduction II. Foundations a. Vision b. Mission c. Corporate Governance Policy d. Success Metrics III. Objectives IV. Tactics V. Success Metrics

2 I. Introduction The Insurors Indemnity Strategic Plan exists to communicate the long and near-term goals of the company and organize its plans to achieve them. It is intended to promote mutual understanding and cohesiveness among those charged with executing its varied contents as well as serve as an instrument of confirmation between the Board and its management team as to desired outcomes. II. Foundations a. Vision The ultimate guide and foundation of the Insurors Indemnity Strategic Plan is the Vision of the organization s founder. The vision serves to predicate all goals, plans, tactics and measurements of success. The vision serves to guide our actions over the long term. Insurors Indemnity Companies aspires to be a $60 million premium company before 2024, operating in 12 or more states with a surplus to support our premium of at least $35 million. To achieve our aspiration, we will focus our efforts on niche and targeted insurance and surety products that will provide the profit needed to support our growth. We will be perceived by our agents and common customers as the most friendly and efficient insurance company in the industry which always exercises educated common sense in all decision making. Our people will prosper as does our company through professional growth and career opportunities. Tom Chase b. Mission The company s mission serves to provide a consistent framework within which the company achieves its short term and ongoing goals, even when the most direct pathway to achieving the long-term vision is unclear. Provide our agency partners and common customers targeted insurance and bond products in an ethical, timely, friendly and common-sense manner; provide our employees with meaningful work and professional growth opportunities; and increase the value and importance of our company to our stakeholders. c. Corporate Governance Policy The corporate governance policy defines the requirements and constraints within which the management team must operate while attempting to achieve both long and short-term goals. d. Success Metrics Success Metrics are pre-defined, non-negotiable measurements that define what success looks like now and in the future and determine the level of success that is being achieved. In our efforts to grow the company, these are benchmarks that we do not wish to compromise.

3 III. Objectives a. Achieve $30 Million written premium throughout 8 states by year-end b. Be perceived as the most-friendly company by agents and policyholders. c. Be perceived as the most-efficient company by agents and policyholders. d. Insure that our people prosper. IV. Tactics Objective A: Achieve $30M premium in 8 states by year-end The CEO will seek out and review at least 5 M&A opportunities. 2. By year-end 2018: The company will hire a contract surety underwriter to be centrally located in our targeted states outside of Texas, to develop existing agents, bring on new agents, underwrite accounts and market the company. 3. By year-end 2018: The company will hire a marketing representative for central, east and south Texas. 4. By Q2 2018: Marketing will develop a system requiring and tracking regular agent contacts and report those statistics monthly. 5. By March 1 st, 2018: Marketing will create specific profiles of IIC s desired P&C and Surety agencies and submit a plan for finding and appointing agents fitting those profiles within our targeted states. 6. Newly hired marketing staff will work together to develop and maintain incentive programs for CSR s to place more commercial surety business with IIC. 7. By the end of the following years the company will be fully engaged in writing business in these 8 states: 2018: Texas, New Mexico, Arizona, Arkansas*, Oklahoma* 2019: Nevada *Surety only 2020: California, Colorado(TBD) 8. By the end of Q2 2018: Marketing, Underwriting and the CEO will determine whether strategic use of reinsurance can allow further growth in peak areas while staying within the requirements of the company s Exposure Management Plan. If affirmative, implementation will take place in Q By Q2 2018: ValueSure.com will be fully capable of selling notary, MVD and other commercial surety business in Texas. 10. By Q2 2019: ValueSure.com will be fully capable of selling notary, MVD and other commercial surety business in New Mexico, Arizona, Arkansas and Oklahoma. 11. By Q2 2018: The company will begin targeting small businesses for contract surety, primarily marketing to the demographic through the ValueSure

4 Agency, and accessing the SBA for reinsurance in addition to its traditional XOL and Surplus Share arrangements. 12. By Q3 2018: The VP of P&C Underwriting will submit a plan to the CEO for targeting, marketing and underwriting heavier classes of general liability. 13. By Q3 2018, the VP of Surety Underwriting will submit a plan to the CEO for targeting, marketing and underwriting larger bonds over time. Objective B: Be perceived as the most-friendly company by agents and policyholders. 1. The company will provide at least two formal, in-house training sessions on customer service annually. 2. Incentives will be provided for employees to exceed the stated minimums for customer service (see section V. Success Metrics) 3. By Q2 2019: Random in-call monitoring will be enabled to insure all customers are helped in a friendly and efficient way. Objective C: Be perceived as the most efficient company by agents and policyholders. 1. All department leaders will incorporate into their meetings and discussions with employees an emphasis upon continual improvement in levels of service to policyholders. 2. A system designed to encourage employees to bring forward ideas for distinguishing our delivery of services to customers will be developed and monitored. 3. Oceanwide Bridge access and training will be deployed as follows: i. 50% of agents using system by year-end 2018 ii. 80% of agents using system by year-end 2019 iii. 95% of agents using system by year-end A system for immediate P&C phone quotes will be offered to agents 3. By Q3 2018: P&C rejection forms will be sent/signed/received electronically. 4. By Q4 2019: P&C policy documents will be delivered electronically 5. By Q3 2018: Salesting will provide regular reporting on stated efficiency benchmarks. 6. By Q4 2018: The Zultys phone system will be replaced with a more sophisticated system that allows: i. Real-time and ad hoc reporting on call back speeds, hold times, hang up rates, and other important service points. II. Integration with Salesting and other management and trend monitoring tools.

5 iii. Integration with current and calendaring system iv. Inclusion or integration with instant messaging, instant meeting and chat features. Objective D: Insure that our people prosper 1. By Q1 2018: Implement IIC s new employee handbook 2. By Q1 2018: In-source and centralize all HR functions for greater standardization of processes. 3. By Q2 2018: Build on current system of development plans by creating a standardized development plan model for use by all. 4. Provide employees access to well-trained HR Representatives. 5. Utilize the services of an HR consultant to insure compliance and best practices. 6. Insure continued employee education through lunch & learns, benefits workshops and investment planning seminars. 7. Implement an employee-led health maintenance plan benefit. V. Success Metrics a. Net Written Premium to Surplus Ratio: 1.35:1 b. Expense Ratio: P&C 43% c. Expense Ratio: Surety =58% d. Combined Ratio: 85% e. Underwriting Profit: 5% of EP f. Annual Surplus increase: 6.5% g. 5-year Average Net Loss/LAE Ratio P&C: 47% h. 5-year Average Net Loss/LAE Ratio Surety: 18% i. Compensation % of NWP: 10% j. Information Technology Expense as % of NWP: 5% k. P&C Retention Ratio: 90% l. P&C Submit to Quote: 70% m. P&C Quote to Issue: 40% n. Contract Submit to 1 st Issue: 38% o. Commercial Submit to Issue: 50% p. Avg Days Claim Open to Paid: 18 = 10; 19 = 9; 20 = 8 q. Avg Hours Claim Open to Contact: 18 = 1 hour; 19 = 45min; 20 = 30 min r. Max Phone Call Response: 18 = 1 hour; 19 = 45min; 20 = 30 min s. Average Chat Survey Rating: Excellent t. Decision not to renew: 0% = poor service u. Claims Fairness & Timeliness Survey Rating: 95% = 4 or higher v. Direct Written Premium Per Employee: 18 = $700k; 19 = $750k; 20 = $800