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IAI Actuarial Core Principles · Business Management · Strategy, competitive advantage, strategic decision process and PEST analysis

After choosing to launch a term plan through bank partners, an Indian insurer compares monthly sales, persistency and claim ratios with targets and revises its distribution approach where results fall short. Which stage of the strategic decision process is this?

This is the monitoring and control stage. After implementation, the insurer compares actual sales, persistency and claims with targets and adjusts its approach where needed, giving feedback to the decision process. It is not objective setting, option generation, scanning or selection, which occur earlier.

  1. ASetting objectives
  2. BGenerating alternatives
  3. CMonitoring and control of the implemented decisionCorrect
  4. DEnvironmental scanning using PEST
  5. Selecting the preferred option

Explanation

Comparing actual results with targets and adjusting actions is monitoring and control, which follows implementation. It provides feedback that may lead to revised objectives or options, but is distinct from selection or scanning.

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