The purchase of another insurance broker may provide NL Ltd Company with the following advantages. First, NL Ltd will have more resources, a better technological system, and tools for analysing data. These will all help the company grow more effectively and efficiently overall.

Second, NL Ltd can get rid of duplication and supplication when they acquire another insurance broker. By streamlining operations and consolidating resources, the combined entity can achieve higher efficiency and improved overall performance.

Third, by acquiring a broker network, NL Ltd will get access to new channels for distribution. If the purchased broker has a strong diverse network of agents, clients, or partners that Nl Ltd may use to enter new markets and grow its business, then this could be beneficial. (CII study text, M92 Insurance business and finance, 2023-24)

These advantages can make acquisition a strategic move to strengthen NL Ltd.’s position in the market and foster long-term success.

(b) – One key measure that NL Ltd could do to enhance its technological capabilities is to perform a comprehensive technology integration and upgrade procedure. This means combining the platforms, tools, and technology systems used by both businesses into a single, cutting-edge infrastructure. It enables NL Ltd. to use the finest technology skills from both businesses, optimize operations, improve customer experience, and create the framework for the future. (CII study text, M92 Insurance business and finance, 2023-24)

Question 2 – Learning Outcome 2 (20 marks)

(a) A militarization/hierarchical management style, with a formal structure and well-defined job descriptions, is the most suitable for KR Ltd. This strategy will guarantee that staff members are aware of their duties. This will improve the overall performance of the workplace and eliminate the senior leadership gap. A straight chain of command can also help expedite decision-making and avoid delays brought on by uncertainty.

(b) To address operational issues, I would first reaffirm company’s policy such as underwriting, human resource and compliance. Company’s policies serve a crucial role beyond just operational improvement. They help establish clear expectations for employees, hold management accountable, ensure legal compliance, provide defence against potential legal disputes, and contribute to fair treatment for employees by providing guidelines for consistent behaviour and decision-making. Additionally, it involves communication, training to the staff, and monitoring to ensure consistent adherence across the organization. Regular reviews and feedback loops would be essential to maintain operational effectiveness.

My next action would be to work with the employees to arrange for everyone to be available during fixed business hours. By establishing working hours, one can establish closer communication with employees, customers, and brokers. This shift in communication could have a significant impact. With everyone present on any given day, businesses find it easier to set up meetings and catch-ups, communicate instructions, and work together on projects. It also makes it simpler for employers to monitor their workforce. to ensure that everyone is performing their tasks, functioning, and being aware of the emotions inside teams and among individuals.

The last step is setting up a customer service portal that brokers, clients, and other interested parties can use to file complaints. In addition to making it easier to gather feedback from customers, this method would prioritize taking care of important issues first. This approach aims to improve customer satisfaction and more effectively handle issues as they arise.