Any company’s reason for being (purpose) is to create long-term value for its owners by profitably and sustainably addressing people’s needs. There is a compelling business case for having a clear purpose: it provides justification and legitimacy for the company’s business model and activities, serves as a ‘North Star’ for corporate decision-making, unifies and motivates key stakeholders, and helps the company take a broader view of the world to identify new profitable business opportunities. Profit-making and purpose-achieving are interdependent and mutually reinforcing; there is no purpose without profit.
For purpose to be effective, it must be embedded in day-to-day business operations and communicated distinctly from other concepts such as vision, mission, and corporate social responsibility. Purpose answers the most fundamental question: “What would the world lose if the company disappeared?”
The inherent purpose of insurance is to make people and businesses more resilient by helping them prevent, withstand, and recover from financial shocks. Insurers who do not properly define, substantiate, embed, and communicate their purpose miss a major opportunity and sell themselves short with customers, employees, capital providers, and other stakeholders.