The President Director of Manulife Dharmala, a large, successful Canadian-Indonesian joint venture life insurance, faced a significant operational disruptions due to social unrest in Jakarta. In addition, the Asian financial crisis had led to a massive devaluation of the rupiah relative to the U.S. dollar. As premiums had U.S. dollar-denominated policies become expensive almost overnight. Policy surrenders, withdrawals and lapses were occurring at an alarming rate … Read more »

The President Director of Manulife Dharmala, a large, successful Canadian-Indonesian joint venture life insurance, faced a significant operational disruptions due to social unrest in Jakarta. In addition, the Asian financial crisis had led to a massive devaluation of the rupiah relative to the U.S. dollar. As premiums had U.S. dollar-denominated policies become expensive almost overnight. Policy surrenders, withdrawals and lapses were occurring at an alarming rate. This erosion of the company’s customer base also meant that sales representatives (which only worked on commissions) were not only losing customers, but were also a major challenge in writing new policies in light of economic, political and social chaos. Given the external situation, the president director and his management team were forced to develop effective strategic marketing decisions.
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from
John S. Hulland,
Donna Everatt
Source: Ivey Publishing
21 pages.
Release Date: 1 January 1999. Prod #: 99A022-PDF-ENG
Dharmala Manulife: A Marketing Strategy HBR case solution

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