 |
||
|
||
| A Trusted Path | ||||||
 awanesa's
professionalism created a limited number of additions to
the executive office. This didn't mean, however, that the
company was about to become top-heavy. The guiding
premise for the creation of the new management structure
was that decisions be made, as much as possible, by the
people who interact direct with the policyholders.
Consequently, Wawanesa continues to have one of the least
complicated management structures in the insurance
industry. |
||||||
| During this
time, Wawanesa's competitive edge was bolstered by two
significant economic factors: intense competition for
market share, and volatile interest rates. The first demonstrated the importance of Wawanesa's strong roots, while the second proved the wisdom of conservative investment management. For several years, growth of the North American economy was fuelled by spiraling inflation. During this time, many companies entered the insurance market, while other insurers quickly expanded their operations. In both instances, the prevailing assumption was that growth and prosperity were one and the same thing. In an attempt to acquire greater market share, almost all companies priced their product below their costs. Interestingly, those companies most aggressive in expansion were often the same companies that pulled out of the market when the economy faltered at the end of the 1980's. Wawanesa, however, remained loyal to its customers during that period of economic upheaval, and also took the opportunity to consolidate its position. |
|
|||||
|
Significantly restructuring operations in
1993, The Wawanesa Mutual Life Insurance Company was
converted into a wholly owned stock subsidiary of the
older, general insurance company, a move which
streamlined operations. The new structure clarified the
relationship between the two companies, and created
better mutual support. |
|||||||||||
|
As a result,
the number of owners grows every day. There are now more
than 1.2 million Wawanesa policies in force, with company
assets in excess of $2 billion. As the customer base
expands, Wawanesa takes advantage of the economies of
scale offered by large numbers. Profits are reinvested in
the company to provide security and stability for the
policyholder. As a secure and stable company, Wawanesa has built a reputation of putting the policyholder above all else. When a California woman was distraught by the theft of her new Mustang in 1994, the police officer to whom she reported the theft was able to offer some encouragement. When told that the car was insured by Wawanesa, the officer said: "Well, that's one thing you won't have stress about. They are very good to their customers." This widely held view of Wawanesa has ensured the growth of the company. |
|||||||||||
| In 1996, Wawanesa embarked upon its second century of service - with some 1,300 employees, and a time-honoured partnership with a similar number of independent brokers. In the years ahead, the company will continue its loyal service to existing policyholders, and invite new generations to join Canada's largest mutual insurance company. Wawanesa's operations in California can be restructured to facilitate expansion into other states. The dramatic success of Wawanesa in California will serve as a springboard to the rest of the American market. | |||||||
In this
respect, the company is much the same today as it was in
1896. The prairie farmers who formed The Wawanesa Mutual
Insurance Company weren't content to limit their efforts
- they recognized the potential of their enterprise to
serve a much larger community. A century later, the
people at Wawanesa view their present achievements as a
backdrop to what can be accomplished in the years to
come. It is certain that stability and service, the
values that have always been the backbone of Wawanesa,
will continue to guide the company in its second century. f
Wawanesa were to be judged only by the typical corporate
standards of the bottom line, undoubtedly it would be
deemed a success. But Wawanesa makes its decisions based
on the values of the company's founders. When Alonzo
Kempton and Charles Kerr spent that night on the prairie
one hundred years ago, they talked about bringing people
together to perform the most basic of duties - to look
after one another.Today, Wawanesa people still talk about that duty. They regard achieving the goals of Kempton and Kerr - earning the trust of policyholders - as the true measure of the continuing success of The Wawanesa Mutual Insurance Company. |
|
||||||
Wawanesa's
earliest policies were written by hand in
the elegant copperplate of company
accountant Charles Kerr. His tools were a
pen and an inkwell, and his personal
touch was unmistakable.
