response 1:  Choice and Background  For this weeks DQ I have decided to address the 4 questions pertaining to my organization.  I work at Nationwide Insurance in middle market underwriting.  I lead a team of underwriters who review commercial businesses for acceptability and pricing.  This is very much like home and auto insurance but for businesses.  In some of the responses I will note the difference between personal insurance and commercial insurance.  Who is your primary customer?  In this question I think middle market insurance (larger commercial clients) differs from personal insurance and small commercial insurance.  If I worked in our personal lines department I would likely answer the customer is the end user.  However, in middle market insurance I would identify our main customer as our distribution partners, the insurance agent.  Independent agencies may represent several insurance carriers.  When they are selling insurance to a customer most of the time they chose one carrier to present to solicit or retain the customer.  This is personal preference of each producer as some lay out several carriers to show a comparison.  If the price for insurance is similar for several carriers the agent will often recommend a company they prefer to do business with.  As a company we need to focus on our agency partners to determine how to best attract and present ourselves to them.  By doing this we would be able to separate ourselves from the competition.  What critical performance variables are you tracking?  This question is very pertinent to me at this time as my team is currently completing year end reviews.  In the reviews there are 3 sections with several sets of performance evaluations for each section.  One of the sections is around financial results.  There are several metrics with multiple scores in each metric.  For example, one measure is around loss ratio, or profitability.  Within the loss ratio there is a section for regional loss ratio as well as state loss ratio.  The value for these is then averaged.  It makes completing this difficult and does not give a clear defined strategic plan.  I would like this to be simplified and shortened considerably.  I would like to see 3 or 4 performance measures.  I also think the goals should be more granular.  I would incorporate state loss ratio, and drop the regional component.  What strategic boundaries have you set?  I like this performance measure because it affects underwriting in the terms of appetite.  When I discuss appetite it refers to what we will write and what we will not write.  I have used the example of a dynamite factory in the past.  This is a high risk business and something standard insurance companies would not entertain.  A retail clothing store is more on the lower hazard end of the spectrum and something most insurance companies would consider.  When visiting with our agency partners the question regularly comes up, "What do you write?"  Agents want to know when th ...

1. response 1:
Choice and Background For this weeks DQ I have decided to
address the 4 questions pertaining to my organization. I work at
Nationwide Insurance in middle market underwriting. I lead a
team of underwriters who review commercial businesses for
acceptability and pricing. This is very much like home and auto
insurance but for businesses. In some of the responses I will
note the difference between personal insurance and commercial
insurance. Who is your primary customer? In this question I
think middle market insurance (larger commercial clients)
differs from personal insurance and small commercial
insurance. If I worked in our personal lines department I would
likely answer the customer is the end user. However, in middle
market insurance I would identify our main customer as our
distribution partners, the insurance agent. Independent agencies
may represent several insurance carriers. When they are selling
insurance to a customer most of the time they chose one carrier
to present to solicit or retain the customer. This is personal
preference of each producer as some lay out several carriers to
show a comparison. If the price for insurance is similar for
several carriers the agent will often recommend a company they
prefer to do business with. As a company we need to focus on
our agency partners to determine how to best attract and present
ourselves to them. By doing this we would be able to separate
ourselves from the competition. What critical performance
variables are you tracking? This question is very pertinent to
me at this time as my team is currently completing year end
reviews. In the reviews there are 3 sections with several sets of
performance evaluations for each section. One of the sections
is around financial results. There are several metrics with
multiple scores in each metric. For example, one measure is
around loss ratio, or profitability. Within the loss ratio there is
a section for regional loss ratio as well as state loss ratio. The
value for these is then averaged. It makes completing this

2. difficult and does not give a clear defined strategic plan. I
would like this to be simplified and shortened considerably. I
would like to see 3 or 4 performance measures. I also think the
goals should be more granular. I would incorporate state loss
ratio, and drop the regional component. What strategic
boundaries have you set? I like this performance measure
because it affects underwriting in the terms of appetite. When I
discuss appetite it refers to what we will write and what we will
not write. I have used the example of a dynamite factory in the
past. This is a high risk business and something standard
insurance companies would not entertain. A retail clothing
store is more on the lower hazard end of the spectrum and
something most insurance companies would consider. When
visiting with our agency partners the question regularly comes
up, "What do you write?" Agents want to know when they are
soliciting new clients what will fit in our appetite. I think my
company has approached appetite in the past around what we
will not write. The typical high hazard business we would not
write but there were a lot of businesses in a gray area. An
example of this gray area is local trucking companies such as
sand and gravel haulers. They were not specifically on the list
of not writing so we would often entertain some businesses we
probably shouldn't. I think our VP of underwriting who has
been in the role for around 2 years has moved to the thought of
defining what we will write and avoiding the rest. This gives us
a clear defined appetite we can articulate to agencies when
visiting them. It also enables us to cater toward these
customers and customize loss control services, underwriting,
and claims. The feedback has been positive around these
boundaries. How committed are employees to helping each
other? This is an interesting question because I think this is hit
or miss depending on the unit or specific team. I think for the
most part employees are proud of the organization and enjoy
going to work. This is true in underwriting. My team seems to
be committed and is very engaged. I was lucky to be assigned
an engaged team. The people on my team are very tenured

3. ranging from 10 years to 35 years with the company. I wish I
could pat myself on the back and say this is because of me but I
just took over for this team in April. One area I have focused
on is building trust within my team. As pointed out in the
article this is critical in innovation and improving efficiencies.
I think my team has gained trust in me and the company which
keeps their commitment to each other high. I also think a clear
strategy for the state we underwrite will help commit
employees.
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Response 2:
DQ option number two selected. In terms of the order of
operation the answer to this question should be a no-brainer. In
the grand scheme in context of things our customers should
come first. Stakeholder interests should come last leaving
employees right in the middle of the equation. Common sense
and experience has taught me otherwise. Without a doubt there
are tremendous opportunities to be realized and milestones
which are achievable by simply changing order of operation. In
layman’s terms, take care the people that take care the people.
Employees of the first and last line of the fence. They are the
backbone of the operation. Select the right employees, train
them, empower them, inspire them; then get out the way. The
momentum of a persons commitment to your organization’s
success carries more weight than a speeding locomotive.
Interestingly, in the real world, a.k.a. my organization.
Stakeholders come first, employees that last; leave and our
customers someplace stuck in the middle. I need not say that it
is a recipe for disaster. The mere ability to identify the
necessity for strategic change and successfully champion such
cultural organizational changes would dramatically increase our
performance profitability and employee retention rate. As an

4. organization we could potentially solve so many problems it
almost leaves me speechless. Overall, our decision to turn
things around or not is all predicated upon the same variable
“Choice.” I thank you all for listening to me babble all
semester long. I learned that in the midst of my complaining I
have one of two choices actively assert myself and be the voice
and reason of change or get out the way. Time to put my almost
acquired EMBA to work. I couldn’t be more excited to
demonstrate my newly acquired technical ability to orchestrate
and lead strategic organizational change initiatives.