1. Management by Trust:
The Case of a Dutch
Insurance Company
Bruno Käslin
Peter Maas
Albert Graf

2. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Agenda
Page 2
 Market perception / expectation
 Concept of trust
 Research methodology
 Case Study: Interpolis
 Results
 Managerial and research
implications
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3. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Page 3
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4. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Market perception
Page 4
„Insurance companies are huge and clumsy
organisations who are just not there when
you need them.“
‘and if they help you they do it very slowly’
‘they are all the same’
‘you’re just a number’
‘no idea about what is covered’
‘you have to pay attention to the details!’
‘they make huge profits, that are paid by us, the customers!’
which means: one never knows
what to expect!
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5. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Market expectations
Page 5
‘I want them to keep their promises!’
‘offer clarity, which enables me to
make the right choice’
Trust is of
‘they have to help me when I really need them‘ utmost
importance
‘concrete problem solving’ in an
‘actively think together with me!’ insurance-
client-
relationship
‘tell me what‘s it about!’
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6. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
The construct of trust
Page 6
Trust is defined as an accumulation of overall positive expectations which are commonly
shared among several relationship partners (individuals, groups or organisations) and
which is borne by the confidence, that no party will
take advantage of / capitalize on / exploit the other parties‘ vulnerability. Source: Hubschmid 2002
Clients
Social environment
3
Shareholders
4
Competitors Insurance company 2
Politics
1 Culture of
trust
1
Media
2 Experience-
based trust
3 Reputational Employees
trust
4 General trust
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7. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Value creation through trust: three levels
Page 7
Experience-based trust
Reputational trust • Length of relationship
• Positive image • Contact frequency
• Reputation Customer • At a personal level:
• Integrity
• Third parties • Competence
• Branding • Expertise
• Openness
• Ongoing • Fairness
communication • Sympathy
• Size • Affinity
• Reciprocity
• Shared values • etc.
Company Employee
Culture of trust
• History and future of organisation
• Success of organisation
• Organisation of work
Source: Irons 1992 • Style of leadership
• Politics of service
• Company culture
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8. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Research Methodology: Case Study
Page 8
 Methodology:
 Case Study Research (Eisenhard)
 Qualitative methods including interviews, desk-research, company headquarter
visits
 Goals:
 What is the concept of trust in the insurance industry?
 How should an insurance company proceed in raising the general level of trust?
 How does a business profit from a higher level of trust?
 Interpolis:
 One of the largest and most innovative providers of insurance, old-age
provisions and staff availability services (reintegration, absenteeism,
occupational health and safety, etc.) in the Netherlands, also active in Ireland,
Luxembourg and Portugal
 6,000 workers at Interpolis
 Turnover of € 5 billion euros in 2003
 Interpolis has been part of the Rabobank Group since 1990 and is a co-
operative membership institution
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9. Customer
MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Interpolis: A Dutch Insurance Company
Page 9
Company Employee
Company Employee
 Trust-Level 1: Company and employees
– Corporate culture: The four „V“s:
• Vertrouwen (confidence, trust)
• Vrijheid (freedom)
• Verantwoordelijkheid (responsibility)
• Verbondenheid (solidarity)
– Building an inspiring „micro city“ environment: working,
conferencing, discussions, meeting people, relaxing and
eating
– Internal communication
– Employee selection
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10. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Page 10
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11. Customer
Customer
MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Interpolis: A Dutch Insurance Company
Page 11
Company Employee
Employee
 Trust-Level 2: Employees and customers
– Main goal: Creation of customer value
– Each customer is cared for by one of the Rabobank
branches
– Clear and open communication with clients
– All insurance policies are formulated not in an
incomprehensible judicial jargon but simply and clearly
– Claims-management:
• Goal: 1 day settlement
• No detailed checks
• Highly-sophisticated fraud-detecting systems
• Countrywide database for fraudster
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12. Customer
MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Interpolis: A Dutch Insurance Company
Page 12
Company Employee
 Trust-Level 3: Company and customers
– Branding: „Interpolis. Crystal clear“
– A very transparent range of products, e.g. the
all-in-one-policy
– Customers are seen as members and they are able to talk
about their needs and wishes, dislikes etc.
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13. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Interpolis: Some impressions
Page 13
The working environment
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14. Results
MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Page 14
 Interpolis attributes a large part of its market success to the
existence of a culture of trust
 Ability to communicate actively with customers and employees:
 Satisfied customers
 Satisfied employees
 A company culture has been developed, which promotes
innovations, lowers costs and significantly contributes to a positive
performance
 30% more employees compared to traditional office
 Not a restaurant with 1.500 seats
 Less absence, less employee turnover
 Steady growth
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15. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Implications...
Page 15
 ... for researchers
 A comprehensive research model on management by trust in
the insurance industry must consider different levels of trust:
internal culture of trust, reputational trust, experience-based
trust
 Open and clear communication – among other factors – has a
great impact on internal and external trust relations
 Implications are limited: Case in the Dutch insurance industry
 ... for managers
 Trustworthy relationships sustainably enhance the company‘s
success and lowers costs of control
 Insurance companies should not only care about trustworthy
shareholder relationships but also cultivate an internal culture
of trust and foster trustworthy relationships with clients
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16. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Debriefing: Learnings from the Interpolis case
Page 16
When you think back to yesterday’s visit...
 Why did Interpolis embark on this change journey?
 What operating model does Interpolis basically pursue
(OpEx, customer intimacy, product leadership)? Why?
 Which are the success factors of the Interpolis story?
 Which aspects of the Interpolis case would you like to
translate to your organisation? What could enable the
success of such a transfer?
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17. MBA FSI
Module 1
Interpolis Case
Nov. 9, 2012
Page 17
Thank you for your attention!
Questions?
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