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IAI Actuarial Core Principles · Business Management · Communicating strategy; culture and structure in decision making; strategy case studies

Kaveri Reinsurance is announcing a strategy to exit its motor line. Stakeholders include policyholders, agents, IRDAI, employees and shareholders. The communications head proposes a single identical press release for all. Which is the best reason this is inadequate?

A single identical release is inadequate because stakeholders have differing interests, information needs and influence. Messages and channels should be tailored to each group while keeping the facts consistent, so that policyholders, agents, regulators, staff and investors each get relevant information.

  1. APress releases are prohibited under Indian law for insurers
  2. BDifferent stakeholders have different interests, information needs and influence, so messages and channels should be tailored while remaining consistentCorrect
  3. COnly shareholders need to be informed of strategic changes
  4. DRegulators should be told last to avoid interference
  5. Tailoring messages to groups necessarily means giving contradictory facts to each

Explanation

Effective stakeholder communication considers each group's concerns and power, adapting content and channel while keeping the core message consistent. Contradictory messaging would be a failure, not the aim of tailoring, and other options are unsupported claims.

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