Total Quality Management: With an Actuarial Perspective to Property/Casualty Insurance

Total Quality Management (TQM) is the way of managing for the future and is far wider in its application than just assuring product or service quality. It is a way of managing people and business processes to ensure complete customer satisfaction at every stage, internally and externally. TQM is now a very desirable option which will soon become a necessary discipline, and that, applied in the insurance industry without a central role for the actuary; it will fail of its promise. Actuarial participation in the TQM process will require considerable extensions in actuarial scope and method. This is because any effort that stops short of the bottom line will fail, as will any effort that stops short of full understanding and characterization of the underlying variability. This paper has discussed the TQM and the implications for the actuarial discipline. Since problems can be detected and characterized in the actuarial and financial areas of a company - but not solved - then the application of TQM in the operating areas of an insurance company, insurance processing operations, underwriting, claims, marketing and sales, information processing, research and development, financial management, reinsurance, investments are studied, focusing both on the workflows and on the flow of information. Finally Deming's Points in terms of their application to the business of insurance are presented.

کلیدواژه ها:

total quality management ، insurance ، statistical method