Changing customer needs, rising customer acquisition and maintenance costs, fall in customer and employee loyalty, etc., have resulted in unprecedented importance being laid upon the only sustainable competitive asset, "the knowledge asset". Enhancing the utilization of knowledge asset by creating a knowledge-centered culture is essential, which is possible only by encouraging knowledge creation and dissemination.

Karl Erik, in the 1980s, initiated discussions about the most valuable asset of all, knowledge. He described the foundations of knowledge management in his book called The New Organizational Wealth: Managing and Measuring Intangible Assets. His work emphasizes knowledge as the most important asset of all. Knowledge is very important, when it comes to management of knowledge-intensive businesses like that of healthcare services, application as well as system software, insurance, etc.

In these businesses, knowledge is more precious than procedures, processes, and other physical assets. However, mere knowledge about the importance of knowledge cannot make a company competitive. The company must take the right initiative to create, share and extract the profit potential of the knowledge base inside the company. Knowledge management, not only enhances effectiveness and efficiency, but also improves a company's scope of competence, enlarges its capacities, etc. which are otherwise constrained by conflicting goals, objectives, resources base, etc.

Insurance Chronicle Magazine, Knowledge Management, Insurance Companies, Conflict Management, Decision-Making Process, Quality Management, Intellectual Capital, Business Process Management, Organizational Knowledge, knowledge Acquisition, Organizational Goals.