Cost benchmarking in insurance sales

Insurance

Cost benchmarking in insurance sales

Initial situation and project goal

As part of the merger of several subsidiaries, efficiency and effectiveness were to be increased in the different sales channels within the sales/marketing department. Based upon cost benchmarks, existing and planned structures as well as processes were to be critically examined and potential methods of cost reduction were to be identified.

Selected measurements or ratios from the existing and planned sales structures were to be compared with relevant market values by means of a “top-down” approach, cost gaps were to be identified resulting in specific actions aimed at cost reduction.

Project steps

The most important project milestones included:

  • Defining the ratios and the specification of the criteria for competitors which can be used for comparison as well as selection of the suitable companies
  • Deriving the “performance/cost gaps” or rather variations in comparison with the competitor
  • Defining and specifying realistic target figures for each KPI in the individual sales channels (based upon the benchmarks)
  • Calculation of potential cost reductions based upon the specified target figures
  • Transfer of potential, taking into account-specific actions and measures from the point of view of sales strategy
  • Prioritisation of specific actions and measures based upon cost/benefit considerations and summary of all potential cost reductions within the sales department

Project results and outlook

  • Specific measures leading to a significant reduction in staffing and material costs according to sales channels / staffing areas (short/medium term)
  • Additional options for substantial structural alterations (spanning all sales channels)
  • “Sales strategy 2020” to increase efficiency and effectiveness 


 

Press

IT füllt ihre Zukunftsrolle noch nicht aus
June 2017