Realignment of operational model
Initial situation and project goal
The current business climate in the insurance industry is also putting pressure on the operational models of insurance companies. Societal, technological, regulatory and economical trends contribute to the more stringent competitive conditions; therefore, insurance companies are faced with the challenge of aligning the internal processes and structures to the new circumstances. In light of this, the client thought it was important to develop an operational model that – derived from the strategic guidelines of the business model – optimally supported the go-to-market strategy at the lowest production costs. The project's focus was on creating a cross-divisional, end-to-end assessment of the sales support as well as the order processing and claims service of all health and life insurances (SHUK) as well as personal insurance divisions.
The most important project milestones include:
- Analysis and positioning assessment of the business and cost development in the insurance-relevant divisions and pertinent cross-sectional areas (market and competitive position, SWOT analysis of the individual business areas, self-image, process and costs analysis and benchmarking)
- Deviation of strategic guidelines and cornerstones relevant to the operational model and the insurance company's market processing strategy (e.g., degree of added value of the business and operational model, collaboration model between sales, operations and divisions)
- Identification of the required needs for action in terms of moderate alignments to the business model and the go-to-market strategy
- Development, coordination and approval of the company-relevant design principles for the operational model
- Determination of the line of attack for the adjustments of the existing operational model in terms of sales support, input and output management, in particular order, contract and claims processing in the following categories: processes, structures, IT support, human resources, culture and management (EY Innovalue) operational model check)
- Development and population of a business case for the new operational model including human resource measures.
- Turnover planning and board of management approval
Project results and outlook
- The insurance company's operational model must be aligned to the new challenges arising from the market and the competition in order to efficiently and effectively be able to support the insurer's go-to-market strategy
- A new model of collaboration between division, operations and sales was developed with the company's managers
- The new system does away with the traditional division of work and requires the establishment of a new "type of game"
- The divisions' focus is on their role as a supplier of insurance-specific products, an underwriter and an operator of complex processes
- Sales and marketing are focussed on sales and the strategic go-to-market process
- The "new" business bundles the high volume of simple and standardised transactions with the goal of achieving economies of scale in terms of cost and quality