ATLANTA, GA – Sept. 1, 2006 – Insurers that invest in education and development of their employees can realize increased revenue, according to research by the Institute for Intellectual Capital Research (IICR). In fact, among the companies studied by the research, every $1 increase in training and development equaled an increase of $168 in revenue per employee, according to an article in the September issue of LOMA�s Resource magazine.
The article discusses the importance of managing intellectual capital in the insurance and financial service industry. The article�s author, Dr. Nick Bontis, associate professor of strategic management, McMaster University, and director of the IICR, says the capacity of an enterprise to create wealth is now based primarily on the capabilities of its people. Firms that thrive in today�s environment see themselves as learning organizations and they pursue the continuous improvement of their intellectual capital, he says.
Bontis discusses the research that linked training and development to higher revenue and says there is a clear statistical association among the intellectual capital metrics. He also gives suggestions as to how insurers can improve their intellectual capital management. The compete text of the article can be read on the Resource section of the LOMA Web site, or downloaded from ftp://www.loma.org/res-edvalue.pdf.
Established in 1924, with 1,200 plus member companies in over 80 countries, LOMA is committed to a business partnership with its world-wide members in the insurance and financial services industry to improve their management and operations through quality employee development, research, information sharing, and related products and services. For more information, visit www.loma.org.