The high level of oversight and involvement has resulted in many process and product improvements. IFFCO-Tokio has been able to maintain control over the processes. This might change with scale. Scale not only means more policies, but also new types of distribution channels. It will be difficult for IFFCO-Tokio to maintain the same level of control over the process. It might need to modify its processes and introduce more decentralized decision-making. It will be interesting to track the variations in the claims and expense ratios as new approaches are tested. The lower degree of control may be offset by higher premium volume, but this is not certain, and IFFCO-Tokio will monitor these indicators closely as it moves forward.
Date of last Learning Journey update: September 2012