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A Lean Six Sigma framework for the insurance industry: insights and lessons learned from a case study

Author

Listed:
  • Kai Sandner

    (Catholic University of Eichstätt-Ingolstadt)

  • Sebastian Sieber

    (Catholic University of Eichstätt-Ingolstadt)

  • Marleen Tellermann

    (Versicherungskammer Bayern)

  • Frank Walthes

    (Versicherungskammer Bayern)

Abstract

It has long been recognized in the literature that the Lean and Six Sigma methodologies can complement each other fruitfully. So far, however, researchers have not been able to derive definitive conclusions on how to combine these methods; furthermore, there is little research on how to apply them to service firms. We develop a framework for integrating Lean and Six Sigma instruments in the service industry, particularly in the insurance sector, and discuss it in the context of the insights we gained from a large-scale project carried out at a large German insurance company. We show how various instruments drawn from these two methodologies can be (a) adapted to the insurance industry and (b) combined productively to enable a company to achieve its strategy and goals. The conclusions we draw from these insights can help a wide range of companies customize the combination of the Lean and Six Sigma approaches to suit their specific needs.

Suggested Citation

  • Kai Sandner & Sebastian Sieber & Marleen Tellermann & Frank Walthes, 2020. "A Lean Six Sigma framework for the insurance industry: insights and lessons learned from a case study," Journal of Business Economics, Springer, vol. 90(5), pages 845-878, June.
    • Handle: RePEc:spr:jbecon:v:90:y:2020:i:5:d:10.1007_s11573-020-00989-9
    DOI: 10.1007/s11573-020-00989-9
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    References listed on IDEAS

    as
    1. Kumar, U. Dinesh & Nowicki, David & Ramirez-Marquez, Jose Emmanuel & Verma, Dinesh, 2008. "On the optimal selection of process alternatives in a Six Sigma implementation," International Journal of Production Economics, Elsevier, vol. 111(2), pages 456-467, February.
    2. Karen Hopper Wruck & Michael C. jensen, 1997. "Science, Specific Knowledge, And Total Quality Management," Journal of Applied Corporate Finance, Morgan Stanley, vol. 10(2), pages 8-23, June.
    3. Jiju Antony, 2011. "Six Sigma vs Lean," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 60(2), pages 185-190, January.
    4. Brown, Steven P. & Lam, Son K., 2008. "A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses," Journal of Retailing, Elsevier, vol. 84(3), pages 243-255.
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    Cited by:

    1. Martin Eling & Martin Lehmann & Philipp Schaper, 2022. "Optimal labor and capital utilization by financial firms: evidence from the German property and casualty insurance industry," Journal of Business Economics, Springer, vol. 92(5), pages 853-897, July.

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    More about this item

    Keywords

    Insurance industry; Lean; Process improvement; Six Sigma;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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