Maintaining the Co-operative difference
A Co-operative Insurance Society case study

Page 1: Introduction

CIS operates in one of the most dynamic and complex insurance markets in the world. Insurance is one of the UK’s major industries, with an estimated 700 businesses providing investment and protection products to more than 46 million customers. In recent years, competition in the industry has intensified. To survive and continue to prosper, banks, building societies and life assurance...
Read full page

Page 2: Co-operative values

So in what way does being a co-operative affect the way that the CIS operates?The best answer to the question is to examine the Society’s three principal objectives, which are so important that the organisation refers to them as obligations. These are to: serve exclusively the interests of its policyholders; invest funds solely in the interests of its policyholders; use all profits for...
Read full page

Page 3: A changing market

To understand the reasons why organisations may want to de-mutualise, it is necessary to know something of the changes that are occurring in the overall market. The key impetus in the 1980’s and 90’s has been the battle for the customer. Access to existing and new customers and the ability to sell them a range of products and services to keep out competitors has been the name of the...
Read full page

Page 4: Mass marketing

Much of the competition lies with having access to customers and selling the widest range of services to them. Traditional insurers are increasing their range of business to include banking and mortgage products. Direct operations (e.g. Direct Line) have emerged, who sell their product over the telephone or by post, rather than face-to-face in a high street branch or by employing a salesman to...
Read full page

Page 5: Ensuring value for money

The CIS aims to provide its customers with the best value for money and top-performing products. Its expenses are amongst the lowest in the industry which means that the Society can ensure that as much as possible of each customer’s premium is made to work for their benefit. This also has an impact on the overall investment performance of an individual policy. CIS maturity payouts on its...
Read full page

Page 6: Conclusion

The Society continues to ensure that its values are highly promoted together with the strong support of its brand name. In addition to other promotional support, CIS has become club sponsor of Blackburn Rovers F.C. and is a major advertiser at all Premier League football grounds.CIS has ensured its continuing success by focusing on its co-operative principles and by adapting its business...
Read full page

Related: Co-operative Insurance Society
Case studies in Business Case Studies