High regulations, incredibly complex risk environments, increasing competition from new, agile market players and diminishing customer loyalty – all of these factors have led insurers to embrace Big Data and advanced analytics. Insurers have been using “Big Data” for years to understand their risk profiles; however, they have failed to effectively leverage Big Data to create more responsive and efficient operating models to meet changing market and customer demands. Many insurers struggle to capture the right data on their current business operations and translate that into insights that drive change. If you face these challenges, we can help.
We put operations data at the forefront of strategy execution. We have extensive experience through our work with F500 Insurance firms across Property & Casualty, Healthcare, and Brokerage to drive world-class performance. Our proprietary data-driven approaches and advanced analytics uncover actionable insights – helping COOs, CFOs and insurance executives move the needle and enhance capabilities. We’ve helped our clients leverage big data for real-time decision making, planning and operations – finding new actionable insights to move the business forward. We have the right capabilities to yield actionable insights, and the execution experience within the insurance industry to create sustainable results.
Our experience spans core functions (sales, distribution, underwriting, quoting, policy issuance, receivables, claims and payables) and well as support functions (customer service, risk, finance, technology, field support, operations and training). We have helped leaders transform performance through high impact initiatives focused on organizational design, process improvement, customer service, and customer loyalty. Through our proprietary diagnostics, measurement systems, and tools, and our advanced analytics capabilities, we drive strategy execution to maximize performance.
Client Impact Stories
Leveraging Operations Data and Analytics to Optimize the Global IT Infrastructure of a Multi-Billion Insurance Firm
The Global CIO of a multi-billion insurance provider was looking to find ways to optimize its IT expenditure. The firm spent a significant amount of its annual budget on IT (with over half being spent on IT Infrastructure). In addition, a recent acquisition expanded its global reach but also further complicated its technology landscape. The firm engaged SSA to conduct an assessment of the capabilities of its Infrastructure group outside of the US (across 37 countries).
We baselined the current infrastructure capabilities – from both a financial and operational perspective – and then identified strengths and improvement opportunities to enhance the organization’s functional capabilities.
We identified $80M in benefits through a series of improvements to optimize IT expenditure and enhance functional capabilities:
- Defined the optimal infrastructure service delivery approach that considers core vs. non-core capabilities and global vs. regional strategies of execution.
- Rationalized labor sourcing to create better leverage and support infrastructure delivery.
- Standardized processes within the service delivery model.
- Deployed common infrastructure service management tools
- Established global KPIs & SLAs across countries.
- Implemented country-specific tactical enhancements (e.g., better tools, etc.).
Finally, we uncovered new insights from data that helped the firm drive business decisions. For example, our study of each country’s Infrastructure spending by category revealed previously hidden differences in investment priorities and types of delivery models. We also built the firm a normalized measure of cost efficiency, allowing regional Infrastructure IT leaders to accurately compare financial performance across for the first time. This new view allowed regional leaders to accurately compare financial performance across countries and understand the impact of disparate models and processes.
Designing a New Operating Model for the Entire Middle Office of a Leading Brokerage Firm and Redefining Transaction Processing
The COO of one of the world’s leading brokerage firms wanted to double its margin in three years. The firm’s service and staffing models had built up over time, resulting in high degrees of variability in customer value (what the customer feels), service delivery (how it is delivered), and economics (profitability, risk and cash by client). The brokerage engaged SSA to solve its most vexing problems and fundamentally re-define how it operates. Key challenges included: a large and expensive workforce, no standardization of processes, archaic and inefficient IT, and low productivity.
To provide a clear and concise understanding of the current state performance and key issues plaguing the business, SSA conducted a bottoms-up process mapping of key activities to economics (e.g. how much value/cost sales generated) and organizational structure. We identified multiple gaps in the system and functional groups, and utilized fact and data-driven assessment to break through institutional resistance in a complacent organization.
We also evaluated the brokerage against a determined world-class operating model through external benchmarking, particularly focused on bringing in the best practices, and providing PMO oversight to the transformation process.
We identified $100M in benefits and defined a new operating model for the entire middle office, redefining how every transaction is processed.
SSA provided a powerful case for change, bringing our innovative and high-impact analytical rigor to the initiative. We leveraged our execution expertise to turn opportunities into sequenced actions to yield results. By analyzing opportunities for dependencies, lead times and critical paths to understand the big picture, we crafted a multi-tracked roadmap with shorter quick wins and better transformational changes. Our execution road map detailed project plans, resource estimates, deliverables, as well as identified risks mitigation strategies.