In the March of 2007 C. James Prieur, the CEO of insurance provider Conseco, was confronted with crisis. The front page of the New York Times featured a story on the grieving family of an elderly woman who had faithfully paid for her Conseco long-term care (LTC) coverage, just to find that it would not pay her claims. Her family needed to pay for her care (until her recent death), which unfortunately resulted in the loss of the family business. The family was very openly pursuing litigation.
To get an organization that depended on tens of thousands of investors, employees, and independent brokers who sold the insurance plans, this reputational risk proved to be a serious danger. Along with this immediate catastrophe, all hints in the sector were pointing to the fact the LTC business itself was not feasible, yet over the years Conseco had got several of LTC insurance providers. Pupils are asked to examine not only what Prieur's priorities must be in addressing the immediate crisis but in addition the dangers inherent in the LTC sector and just how this may affect Conseco's success as a company moving forward.
PUBLICATION DATE: June 26, 2014 PRODUCT #: KEL796-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
