Background

A leading US insurance carrier pursued expansion and growth in new, under-served markets by acquiring a competitor. To achieve their revenue and profitability objectives and respond to evolving market dynamics, the company needed to develop a new operating model. This model would enable them to be more responsive, efficient, and effective in their operations.

Approach

To address the client’s requirements and develop an optimized operating model, our consulting team adopted the following approach:

1. Review of End-to-End Services and Processes: Using our operating model development framework, we conducted a comprehensive review of the client’s end-to-end services and supporting processes. We identified activities that differentiated the company from competitors and those that did not.
2. Identification of Efficiencies: We identified opportunities for automation and outsourcing that would generate efficiencies and enable the company to invest in customer-facing, market-differentiating services.
3. Collaborative Workshops and Model Development: Through collaborative workshops with business leaders, we developed alternative operating models. We worked towards alignment on a new model that would significantly enhance efficiency, effectiveness, and customer experience.

Results

As a result of our engagement, the client achieved the following outcomes:

1. Aligned Business Leaders and Stakeholders: Our efforts resulted in business leaders and stakeholders being aligned on the new operating model. They were equipped with a clear blueprint and an execution roadmap for its implementation.
2. Cost Optimization and Profitability Improvement: The client relocated several distribution partner operations to more cost-effective geographies. This relocation enhanced bottom-line profitability by reducing operational expenses.
3. Differentiation in Key Markets: As part of the operating model development, the client launched a new concierge program exclusively for select distribution partners. This program further solidified the client’s differentiation in key markets, enhancing their competitive advantage.