Competitive free climbers constantly adjust their strategy and execution of rock-climbing moves as conditions around them change. Insurance companies are much the same today as they negotiate a shifting landscape characterized by increasing customer demands, economic and regulatory uncertainty, and rapid public adoption of new technologies and channels.
For example, life insurers and annuity writers are beginning to realize that sustained growth over time will require some fundamental changes in their business models. The goal will be to make more efficient use of capital and to expand the market pie by reaching out to underserved consumer segments in innovative ways. This will likely mean transforming their standard operating procedures and revamping their products, core systems, and distribution options.
Property and casualty companies face fundamental issues that threaten not only short-term balance sheet results, but also challenge the long-term viability of their operating models. A growing number of insurers face significant organizational disruption, and many have made large-scale investments in technology, replacing core systems for claims, policy administration, and finance. Their chief challenge now is how to leverage new systems effectively and maintain their momentum with innovations in personnel, products, and culture.
How we can help
Deloitte’s Insurance Service Operations practice works with insurance executives to transform disjointed operations into an integrated sales and service delivery system that can support an insurer’s ability to identify, write, and retain profitable customer relationships. Our team includes professionals who have led some of the world’s top insurance carriers, brokers, agencies, and reinsurance companies. We help our clients in their efforts to improve operations across the following areas:
Strategic underwriting – helping insurers create a base of profitable customer relationships by executing more effective risk selection and sound underwriting decisions that balance risk and price. We also help companies grow the business by identifying profitable and high-risk customer segments using predictive tools and analytic models.
Claims cost containment – streamlining and automating claims administration, devising ways to anticipate potential claim losses, improving processes for managing third-party suppliers, creating processes to improve litigation results, and employing advanced fraud detection processes to mitigate losses.
Performance benchmarking – evaluating company performance against industry leaders to identify areas for improving operations and customer service.
Enterprise cost management – developing sustainable, cost-effective approaches to managing resources in alignment with the company’s strategic goals, as well as striving to refine processes, simplify the organization, rationalize infrastructure, and improve spend management.
Policy administration – identifying ways to improve customer service, employee morale, and cost efficiencies by upgrading systems and processes, as well as creating a seamless customer experience across product lines and channels.
Learn more about our Service Operations Consulting services
Our services often help insurers:
- Improve profitability
- Reduce operating expenses by up to 20 percent
- Lower underwriting loss ratios by up to 7 points in an 18- to 24-month time frame
- Reduce claims costs through improved claims management
- Improve system reliability and accuracy
- Enhance the customer experience
- Increase ability to adapt to changing customer demands
Operational excellence will be pivotal for insurers as they simultaneously drive new top-line revenue, improve margin performance, and manage the costs associated with organizational and technology transformations.