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Illustrative Insurance Assignments
Composite Insurer
Accelerated Growth and Development
in Health Assurance

We worked with the senior management of a composite insurer to develop a strategy in the healthcare market that would double the scale of their existing business within three years. This was based, in part, on extensive original research with individuals, intermediaries, companies and other entities to determine the opportunities for innovation in product, sales process and service. This formed an essential backdrop to other analytical work to develop new propositions for the retail and corporate markets that would be financially viable. (ref 370)

Mortgage Lender
Sale of Protection Products
to Mortgage Customers

This leading mortgage lender was keen to increase the value of its mortgage book through the sale of protection products. However, we identified early on that a key driver of value was increased persistency of the mortgage relationship, rather than brokerage on protection. We therefore developed a range of protection products that complemented the mortgage in terms of their features, pricing structures and excesses, and were seen to add value to the mortgage relationship. The first three will be launched later this year. (ref 403)

Insurance Conglomerate
Review of PMI Subsidiary Prior to Flotation

This PMI company was uncertain as to the course it should pursue to unravel some complex ownership arrangements and give a coherent focus to the group overall. We reviewed the market going forward and its competitive position and recommended a restructuring based on the sale of the brand and certain assets. We assisted the management in putting together a business plan that gave the business a firm direction and fitted well with other group activities. (ref 371)

Health Insurer
Profitability Modelling

Our client was the incoming CEO of a major health insurance company. His concern was that the company had not been profitable for some time and the existing MIS was an inadequate guide as to the causes for this and the right course of action. Working with the finance team we developed an approach to modelling the financial structure of the business that gave a unique insight into the nature of costs, how costs were created and how closely costs were associated with revenues. In support of this we carried out a great deal of internal analysis and work-study to develop a model that enabled us to determine contribution by customer group and sales channel. (ref 395)

Health Insurer
Developing Distribution Strategies
in Health Insurance

In the context of a three year relationship with a leading health insurer, we carried out an extensive review of the market and the economics of health insurance and refined their strategies for selling to target markets. This involved original research with customers and detailed understanding of acquisition and servicing costs. We helped them to create distinct strategies for several channels including direct and intermediated sales to groups, direct sales force and telephone sales to individuals and also sales through affinity groups and work place marketing. (ref 396)

Motor Syndicate
Developing a Business Plan
for Potential Investors

A well-established managing agency wished to re-capitalise this large Lloyds’ motor syndicate by attracting an institutional investor. Our task was to assess the market prospects for the syndicate, develop and articulate a business strategy and work with the merchant bank concerned to put together a business plan for investors. The capital was raised successfully. (ref 372)

Retailer of Consumer Electronics
Growth Strategy for Consumer Credit
and Warranties

This leading UK white and brown goods retailer wished to increase their sales of financial services. They had noticed inconsistencies in the pattern of their sales geographically and understood that consumer attitudes to credit were changing. We carried out data analysis of regional and store sales and qualitative research amongst customers and staff, which resulted in a much deeper understanding of:

- how customers segmented attitudinally towards retail insurance and credit
- the structural and staff attitudinal drivers of sales.

On this basis, we were able to recommend changes in product structure and communication with staff, which resulted in a large uplift in financial services revenues and profit and a major restructuring of the card proposition. (ref 373)

Cross-industry Consortium
New Business Model for a
Virtual Insurance Company

For a consortium of insurers, reinsurers, outsourcers and technology companies, we investigated the potential for the role of virtual business systems in financial services and in particular personal insurance. This involved a large number of in-depth interviews with industry experts, a survey and segmentation of suppliers, specification of key technologies and financial modelling of various operating models.

In particular we focussed on:

- opportunities for cost savings and revenue enhancement
- the use of virtual structures by new entrants to cherry pick profitable niches
- possible near-term responses from incumbent insurers
- the long term impact of virtual systems on industry structure and competitive dynamics.

(ref 374)

Corporate Insurer
Managing Relationships Along the Value Chain

This leading insurance company had been experiencing declining profitability and wished to establish closer linkages with its clients to combat pressures from brokers. We interviewed a number of leading corporate clients to understand their perspectives on the various roles of broker and insurer, and explored with brokers the sensitivities around insurer / client contact. From this work we were able to develop a client relationship strategy that emphasized the presence of the insurer in the relationship and minimized switching and which was compatible with the full involvement of brokers. (ref 392)

Composite Insurer
Development of High Value-added Service
Proposition for London Market Division

The London Market division of this well-known UK Composite was experiencing a severe commoditisation of the services it offered to large multinationals and a general shift of market leverage to brokers. Working closely with senior management and front-line underwriters, we built the skeleton of an enhanced and differentiated service proposition to take back the market initiative from brokers and to reflect the overall margin erosion in traditional risk underwriting and the growing market for fee-based risk services. (ref 393)

International Reinsurance Company
Financial Planning Model & Planning Process

For a specialist international re-insurer we designed and built a financial planning model and process to give senior management the ability to perform ‘top down’ scenario analysis at a corporate level while providing a comprehensive structure for line managers to forecast business levels and costs. There were two parallel strands to our approach. First was to achieve a high-level management involvement throughout the process via a continuous programme of interviewing and workshops. Second was to structure the model in a way which reflected how people really thought, or in some cases should have thought, about the business. Here we relied on our own analysis to scope and prioritise the numerous dimensions of the business and to identify the key performance drivers around which planning should revolve. (ref 397)

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