Business Enterprise Leadership: QBE Insurance Group Innovation Report

This report focuses on QBE Insurance Group, exploring the need for innovation and change management to enhance growth within the insurance sector. It examines how changes in organizational structure, people, and technology are crucial for increasing profitability. The report highlights the comp...Read More

Running Head: Management
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QBE Insurance Group.
Business Enterprise leadership unit
9/17/2019

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Abstract
The report was prepared in regards to the company QBE which deals in the insurance sector. The
report has basically focused on the innovation and the change managements which is required in
the company so that the company can lead to enhanced growth. Innovation means exploring the
new things in the company whereas change helps in dealing with the new things. Change in the
organizational structure people and in the technology is required in the company so that more
profit can be achieved by the company. In this report the certain issues and challenges faced by
the company have also explained and recommendation is provided to improve those issues. The
issues related to the increasing competition, economic conditions and the government policies in
the insurance, etc. creates the issues for the company due to which the operating profit of the
company is declining.

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Contents
Background about the QBE Insurance Group.................................................................................3
Literature review..............................................................................................................................3
Methods...........................................................................................................................................4
Issues and the challenges in the company.......................................................................................4
Conclusion and Recommendation...................................................................................................5
References........................................................................................................................................6

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Background about the QBE Insurance Group
The company was founded in the year 1886 by the two Scottish migrants Robert Philip and
James Burns and it is the second-largest insurance company. The company has the headquartered
in the Sydney, New South Wales and provides insurance services to North Americas, Australia,
Asia Pacific, and Europe region. The company is the merger of three companies and by
combining the letters of three companies QBE Company has formed. The company has a great
market capitalization and also earns a huge profit (Thomas, et al., 2011). The main purpose of
this insurance company is to help people by managing their risk world widely. The company
offers several products to the customers so they are considered as the flexible industry which is
design to meet the needs of the customers and also provides claim on time. The company
provides innovation on certain products such as accident and health, commercial motors,
property, trade credit, etc.
Literature review
Change management and innovation are required in every company for enhancing their growth.
According to the author (Smit and Davies, 2009), changes in the company can be found due to
change in the structure of the company, people or the technology. There are some external forces
also in the company due to which the changes have to make so that the business organization can
sustain in the market effectively. Change in the technology, economic condition and the
fluctuations in the market, increasing the higher competition, changes in the government
programs and the policies are the factors which lead the many changes in the organization.
As per the author (Mika and O'Sullivan, 2014), change management is needed in the company so
that the outcomes and goals of the company can be achieved with the changing environment. As
the business environment has become very dynamic so changing in the organization helps in
bring the transforming so that the management can respond to the dynamic world effectively.
According to the author, innovation is an integral part of any company which helps in converting
the creative ideas into a useful product. In the dynamic market innovation is required to sustain
in the market and to attract the customers and it also helps in transforming the company into the
radical innovation (Nourani, et al., 2017).

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According to the author organizational change is needed in the company so that new ideas can be
adopted by the company. As the environment has become very dynamic so, with the changing
world and high complexity, the changes have to be adopted quickly so that the company can
survive and prosper in that situation. As per the author change and innovation is needed in the
company as in the complex environment it is needed to enhance the growth of the company.
Methods
The information collected in this report is taken from the internet and book. The study has been
done regarding the Management which was made by the author Robbins, Coulter, and Bergman.
QBE insurance group is the financial company so its annual report has been studied to evaluate
the background of the company (Andriopoulos and Lewis, 2009). The performance of the
company is also evaluated with the help of the annual report and the issues and challenges faced
by the company are also ascertained. The research has been done for preparing this presentation
and issues faced by the insurance company are studied.
Issues and the and Recommendation in the company
QBE insurance company has faced certain challenges while operating the industry of insurance.
The company faces the problem of the higher cost of the Reinsurance as they are majorly relying
on the third party. The operating ratios of the company are declining which results in the drastic
fall in the underwriting profitability. The company also faces many issues in the aggravate claim
losses as many people do the frauds in the insurance (Tidd and Bessant, 2018). The customers
also faces the challenges in the leadership as a the communication and the coordination in the
company are not that much effective which was creating the challenge with the leader.
The challenges which the company has to face are that their competition in the field of the
Insurance sector has increased and the major competitors of the QBE insurance company are
Factory Mutual Insurance Company and the Berkshire Hathaway, Inc. The company also faces
many issues in the recent capital crisis due to the evolution of the new technology. The product
of the QBE insurance company is highly complex which leads to the lower premium. Due to the
high changes in the technology employees faces the issues and they are not empowered to
innovate the things. Due to the change management issues also faced such as lack of diversity,

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collaboration, etc. (Sun, 2017). The company is supporting the fossil fuels and due to this they
are losing the customers which are the biggest challenge for them.
The company can become one of the best companies when they engage with good relations with
the customers and also engage in the employer’s relationship. It was recommended that by
changing the technology in the company the productivity and flexibility in the company can be
improved and better customer’s services can also be provided (Robbins, et al., 2017). It is
recommended that to reduce the use of fossil fuel in the company they should use alternative
energy and conserve the electricity use. The company should pay higher dividends to the
shareholders so that they remain in the company.
Conclusion
From the above report, it is concluded that managing change and innovation is required in the
company for increasing the profit. Due to change in the technology and the organizational
structure the company has faced certain issues which have discussed in this report. The company
should track the performances of the company so that if any change required in the company can
be done at the time. By monitoring performance the fraud occurs in the claims of the insurance
can also be reduced.

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References
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Nwadike, G., Abuba, S. and Wokoma, D., 2017. Enhancing Management Strategies for
Profitability of Corporate Organisations in Nigeria. Nwadike, G., Solomon, A. and Wokoma, DA
(2017). Enhancing Management Strategies for Profitability of Corporate Organisations in
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Poulton, E., Barnes, L. and Clarke, F., 2017. The labyrinth of international governance codes: the
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QBE Insurance Limited, 2019. Insurance and Reinsurance Company. Available at:
https://www.qbe.com/ Accessed on: 17 September 2019
QBE Insurance Limited, 2019.Media Centre. Available at: https://www.qbe.com/media-centre
Accessed on: 17 September 2019
Robbins, S., Bergman, R., Coulter, M., 2017. Management. Chapter 7 - Managing Change and
Innovation. Available at: https://pearson.com.au/products/Robbins-Coulter-Bergman/Robbins-
Stephen-et-al/Management/9781488611872?R=9781488611872 Accessed on: 17 September
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Sun, Z., 2017. A framework for developing management intelligent systems. In Decision
Management: Concepts, Methodologies, Tools, and Applications (pp. 503-521). IGI Global.

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Available at: https://www.igi-global.com/chapter/a-framework-for-developing-management-
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Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
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https://www.researchgate.net/publication/323120452_Managing_Innovation_Integrating_Techno
logical_Market_and_Organizational_Change_Sixth_Edition Accessed on: 23 September 2019
Breznik, K., 2018. Knowledge Management–from its Inception to the Innovation
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