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IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

A newly formed Indian insurance startup, Navya Insure, wants employees to understand where the business is going and to be motivated by a shared long-term ambition. Which statement is the most suitable tool and wording for this purpose?

A vision statement, such as being the most trusted health cover provider in rural India, communicates the long-term ambition and motivates employees around a shared direction. Commission schedules, pricing tables, expense limits and liability clauses are operational or legal tools, not statements of aspiration.

  1. AA vision statement such as 'To be the most trusted health cover provider in rural India'Correct
  2. BA detailed schedule of monthly commission rates
  3. CA contract clause excluding liability for negligence
  4. DA pricing table of premium rates by age band
  5. An internal list of the next quarter's expense limits

Explanation

A vision statement expresses the long-term aspirational position and motivates staff by giving a shared direction. Commission schedules, pricing tables, expense limits and liability clauses are operational or legal documents and do not communicate an ambition.

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