The insurance industry has re-affirmed its commitment to promoting competitiveness with the launch of an insurance company sector within the British Quality Foundation (BQF). The sector will be launched at a seminar held today (12 December) at the Association of British Insurers. At the same time the Department of Trade & Industry will launch its report "Critical Factors for Success in the UK Insurance Industry".

The insurance company sector has been established following work by the Association of British Insurers in setting-up a benchmarking initiative within the insurance industry. The insurance sector will allow companies to continue regular self-assessment exercises using a proven methodology already used by other sectors of British industry. It will also provide a framework within which inter-industry comparisons, can be made and "clubs" can be formed for more detailed benchmarking.

The DTI report aims to highlight areas where benchmarking can provide most benefit to the insurance industry. Compiled by industry secondees working at the DTI, it reflects views from within the industry and its leadership.

At the seminar, John Carter, Chairman of the Association of British Insurers, said:

"We believe that insurance is the first industry to establish such a wide ranging sector group within the BQF. Over the last 18 months the Association has carried out much work and research, with the aim of constructing a firm foundation on which future benchmarking could be built. This has been enthusiastically supported by both the DTI and BQF. This exciting initiative will be to the benefit of UK insurers in an increasingly competitive world market, helping our industry to maintain its competitive edge."

The Minister for Trade, Anthony Nelson MP, also speaking at the seminar said:

"This study will enable companies to focus on those factors which lead to sustained competitive advantage. It is not designed to be prescriptive but to encourage companies to think about the critical factors which drive their business.

"This report, and the establishment of the insurance company sector, now provide insurers with the tools to benchmark effectively. I firmly believe this will help insurers to raise their business effectiveness even further."

Notes

1. Copies of the report "Critical Factors for Success in the UK InsuranceIndustry" are available from the Department of Trade and Industry, 1 VictoriaStreet, London, SW1H OET. (Tel: +44 020 7215 5971).

2. For further information:

   Malcolm Tarling +44 020 7216 7410 (Home: +44 020 8297 9510)
   Suzanne Moore +44 020 7216 7411 (Mobile: 0378794717)

3. For radio broadcasts, an ISDN line is available.