OPTIMIZED processes with phased implementation and automation
ACHIEVED a 55% reduction in operating expenses and a 30% decrease in headcount
IMPROVED the quote-to-bind metric by over 70%, demonstrating increased efficiency
Client
North American Wholesale Broker & MGA, offering products across multiple specialty lines, and currently writing over $500 million in GWP
Scope of Work
60+ underwriting support staff across different client entities and product lines
Geography Serviced
North America
Industry Serviced
Insurance
Client’s Challenges
Operational inefficiencies resulting from the lack of integration and standardization in underwriting processes across multiple entities and product lines.
The North American wholesale broker and MGA client’s disparate underwriting functions hindered streamlined operations, creating inconsistencies and delays in processing. This not only affected efficiency but also led to difficulties in maintaining uniform standards and practices. Furthermore, there was a pressing need for a cohesive approach to underwriting that could enhance compliance, improve decision-making, and drive overall operational effectiveness across the diverse client entities and specialty lines.
Impact Generated
The phased transition resulted in significant cost savings through reduced operating expenses and headcount, while also enhancing efficiency with a notable improvement in the quote-to-bind metric:
- Cost savings:
- 55% OPEX reduction. These were expenses reduced within 6 months of transition
- 30% headcount reduction through consolidation and automation, that led to further reduction in direct costs
- Metric improvement:
- Quote-to-Bind metric improved by >70%
Cogneesol’s Solution
Systematic reengineering of processes to integrate automation and create a unified Shared Services model.
We approached the solution in phases:
- Business Process Reengineering (BPR):We initiated the creation of a Shared Services model to streamline operations and enhance efficiency. This included automation to consolidate data sources, reducing handoffs, and improving turnaround times. The revised operating model was implemented through a phased transition, with each phase tailored to the complexity of products and systems to ensure a smooth reengineering process
- Change Management:To manage the transition effectively, we focused on a structured approach to change management. This involved preparing and supporting staff through the phased implementation, addressing concerns, and ensuring alignment with the new operating model. We emphasized the role of analytics and automation in facilitating this change, fostering a culture of adaptability and continuous improvement
- One Team -- The Future State:A roadmap has now been designed to consolidate the client’s entities into a unified shared service model. This has involved revising the operating model through a comprehensive feasibility study and optimization process. We have laid down a ‘One Team’ approach to ensure all entities and teams collaborate effectively, work towards common goals and integrate their functions seamlessly within the new shared service framework
