Shared Value Creation in Australian Insurance Industry: The Qualitative Case Studies of IAG and AIA

Abstract

This study explores the societal and economic value creation by large Australian insurance organisations, which integrate ‘shared value’ business model into their core business. The research objective of this paper is to explore the adoption of three value-enhancing thematic components of the applied shared value model, which are reconceiving products and markets, redefining productivity in the value chain and enabling local cluster development, by two Australian insurance organisations. Using case study design, the thematic analysis of primary interview data reflects how Insurance Australia Group (IAG) and American International Assurance (AIA Australia) have utilised the shared value model to create social value while generating economic value. The secondary findings also identify a fundamental shift in the customer value propositions within the conventional insurance industry, demonstrating successful utilisation of shared value model. The findings will help future academic researchers and practice managers to understand the evolving thematic components of value creation operating within the Australian insurance industry.

Keywords: Shared Value, Australian Insurance Industry, Qualitative Case Study

DOI: 10.7176/EJBM/11-30-09

Publication date:October 31^st 2019