Insurance Service Operations

Identify and retain profitable customers

Competitive free climbers constantly adjust their strategy and execution of rock-climbing moves as conditions around them change. Insurance carriers 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.

Improving business performance

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.

Insurance Service Operations services

  • Streamlining legacy processes and supporting technologies — identifying ways to help improve customer service, employee morale, and cost efficiencies by upgrading policy administration and other systems, streamlining processes, and creating an efficient customer experience across product lines and distribution channels.
  • Operating model enhancement — assessing process, technology, and organization and performance management against other insurers as well the company’s own strategy and goals to help transform its operating model, including shifting of fixed costs to variable, shedding non-differentiating processes and technology, and increasing focus on growth, distribution, and product innovation objectives.
  • Performance benchmarking — evaluating carrier performance against industry leaders to identify areas for potentially improving operations and customer service quality while managing costs.
  • Strategic underwriting — helping insurers create a base of profitable customer relationships by executing more effective risk selection and sound underwriting decisions that help balance risk and price. We also help carriers grow the business by identifying potentially profitable and high-risk customer segments using predictive tools and analytic models.
  • Improved inforce management — leveraging data and analytic tools and techniques to support cross-sell and up-sell programs, help improve retention, and enhance risk selection capabilities.
  • Claims cost containment — streamlining and automating claims administration, devising ways to anticipate potential claim losses, enhancing processes for managing third-party suppliers, creating processes to help improve litigation results, and employing advanced fraud detection processes to help mitigate losses.
  • 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.

Potential bottom-line benefits

  • Improve profitability
  • Reduce operating expenses by up to 20 percent
  • Increase process standardization and compliance
  • Improve system reliability and accuracy
  • 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 (for both policyholders and distribution partners)
  • 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.