• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Embedding Innovation in the U.K. Insurance
 

Embedding Innovation in the U.K. Insurance

on

  • 1,354 views

The insurance industry is challenged by competitive pressures, changes in customer loyalty, entry of new players and a stringent regulatory environment, all of which are pressuring insurers to change ...

The insurance industry is challenged by competitive pressures, changes in customer loyalty, entry of new players and a stringent regulatory environment, all of which are pressuring insurers to change their business models, streamline operations, and improve processes. Industry leaders are increasingly turning to insurance outsourcing to help them compete and grow.

Statistics

Views

Total Views
1,354
Views on SlideShare
1,324
Embed Views
30

Actions

Likes
1
Downloads
46
Comments
0

2 Embeds 30

http://www.innovacionaseguradora.com 27
http://innovacionaseguradora.com 3

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Embedding Innovation in the U.K. Insurance Embedding Innovation in the U.K. Insurance Presentation Transcript

    • Underpinning Transformational Change and Embedding Innovation In The U.K. Insurance Sector: What Does It Mean In Practice?
    • Jeremy Owenson And WNS
      • 10 years – Insurance Company Management
      • Underwriting and Claims
      • Personal Lines, Commercial and London Market
      • 2 Years – Insurance Consultancy
      • 6 Years – Insurance Outsourcing
      • Onshore and Offshore
    • Jeremy Owenson And WNS
      • 10 years – Insurance Company Management
      • Underwriting and Claims
      • Personal Lines, Commercial and London Market
      • 2 Years – Insurance Consultancy
      • 6 Years – Insurance Outsourcing
      • Onshore and Offshore
      • WNS – Leading Provider of Insurance Outsourcing
      • 22,000 employees worldwide
      • 6,000 FTE in India and Sri Lanka focused on U.K. market
      • 450 FTE in U.K.
      • Fulfill Policy Admin, Sales, Claims including liability and bodily injury, F&A and Actuarial
    • Lines Of Business Serviced Personal Lines Commercial Lines                                 Agency Management Annuities Pensions Health Liability Life Sales and Customer Service New Business Quotes / Cancellation / Setup Policy Administration Claims Management Inbound Customer Service Centers Shared Services Across All Product lines Finance and Accounting, Business Transformation, Research and Analytics
    • Identifying Core Areas For Change
    • Core Areas Of Change Increased indemnity costs Regulatory pressures Operational costs
            • Increasing fraud particularly through new channels such as aggregators
            • Deteriorating claims service
            • Introduction of Solvency II
            • Increased regulatory regime from the FSA, DPA
            • Introduction of new rules on corruption
            • Introducing new products, channels and delivery mechanisms
            • Reducing headcount, sites, closed book and run off activity
    • Core Areas Of Change
            • Increasing fraud particularly through new channels such as aggregators
              • Introduction of MID means people need the Certificate of insurance
              • Prospects misrepresenting age – “it was a typo!”, e.g. DOB 20/08/78 instead of 20/08/87
              • Increase in incidence of “Ghost Brokers”
              • Increasing sophistication of fraudulent or exaggerated claims with complicity of supply chain
            • Deteriorating claims service
              • Increasing incidence of injury claims in motor
              • Increase in non-fault expenses
              • Increase in “Recession Related” claims
      Increased indemnity costs
    • Core Areas Of Change Regulatory pressures
            • Introduction of Solvency II
              • Requires an increased understanding and reporting of risk
              • Requires overall of systems, reporting and processes
              • Need to establish a new compliance regime in future – pressure due to availability of resource:
              • In 1997, there were 50 trained Actuaries in India, today there are 8340 student actuaries
    • Actuaries And India
      • 1971 – Indian Insurance Market Nationalised
      • Decline in competition and reduction in Actuarial Expertise
      • 1997 – Indian Insurance Market opened to competition
      • Increase in demand for Actuaries
      • 1997 – 50 trained Actuaries in India
      • Accredited Organisations;
        • Institute of Actuaries India
        • Institute of Actuaries (U.K.)
        • Casualty Actuarial Society (U.S.)
        • Society of Actuaries (U.S.)
      • As at start of 2010:
        • Qualified Actuaries – 223
        • Associate Actuaries – 132
        • Student Actuaries – 8340
    • Core Areas Of Change
      • Regulatory pressures
      • Increased regulatory regime from the FSA, DPA
        • Credit Crunch and data losses tighten the screw
          • Benchmark standards from India:
            • No mobile media
            • Increased control over data – internet, email, removal data sticks
            • True paperless office – whiteboards for notes
            • No mobile phones in the office
    • Core Areas Of Change
      • Operational costs
      • Introducing new products, channels and delivery mechanisms
      • Is the money there to launch:
        • New products
        • Access customers through new delivery channels
        • Access to customer self service and the internet?
      • Are you making the most of emerging technology?
      • Are you making the most of new underwriting differentiators / products
        • For Life products – the rise in internet sales for protection and the requirement for instant decisions
      • Reducing headcount, sites, closed book and run off activity
        • How much management time is spent reducing headcount and closing locations?
        • How much time is spent administering closed book:
          • Life closed books
          • Long tail policies / legacy accounts
          • Long tail General Insurance claims
        • Do you put your best people on these accounts? What is that costing you in terms of lost sales
    • Understanding Mixed Opinion
    • The Sacred Cows!
      • Understanding areas of mixed opinion and how to tackle these to grow towards a more unified and efficient approach
      • Many years ago a survey asked London Market Claims Directors to rank the quality of their departments into top quartile, upper middle quartile, lower middle quartile and bottom quartile.
      Standard Distribution Actual Result First Quartile (top) 25% Second Quartile 25% Third Quartile 25% Fourth Quartile (bottom) 25%
    • The Sacred Cows!
      • Understanding areas of mixed opinion and how to tackle these to grow towards a more unified and efficient approach
      • Many years ago a survey asked London Market Claims Directors to rank the quality of their departments into top quartile, upper middle quartile, lower middle quartile and bottom quartile.
      Standard Distribution Actual Result First Quartile (top) 25% 57% Second Quartile 25% 43% Third Quartile 25% 0% Fourth Quartile (bottom) 25% 0%
    • The Sacred Cows!
        • How is this possible? Do people rank based on what they are good at:
            • People who had good systems ranked their performance above average, stating that the systems kept the staff honest
            • People who had poor systems said they employed good staff to compensate for the poor systems
        • The reality is, there are good and bad claims departments out there and there are good and bad people out there
        • We need to recognise that there is no evil in asking a specialist to deliver a service for you. We recognise that some claim need loss adjusters, but you can also have specialists in customer service, technical claims handling, accounts and recovery functions
        • The only problem is, People don’t like being told their babies are ugly!
    • What Are The Opportunities For The Board Room
    • The Opportunities For The Board
        • There is a real appetite within the BPO community to build a partnership with a client, to work with a client to jointly develop a business plan for growth. This can include:
            • Special Purpose vehicles (joint ventures) between a supplier and an insurer, where the insurer gets a financial benefit
            • Outsourcing to deliver new technology – the cost of technology and the ability to integrate to legacy platforms
            • Commercial deals aligning interest – e.g. Gain-share, payment by results (such as per sale, percentage of amount recovered)
            • Co-investment – including using BPO R&A capability to improve deals.
    • The Key To Transformation And Development Of A Strong Future Strategy
    • The Opportunities For The Board
        • Exec need to understand where they want to be, and what their management band-width should be focussed on
        • In insurance, two key areas where the insurer can differentiate are:
            • Product innovation
            • Pricing
        • There are other areas where management time can be absorbed for very little return. This can include functions often described as the back office:
            • Accounts
            • Administration
            • Payroll
            • IT
            • Claims
          • But could also include areas such as
            • Run-off accounts
            • Closed books
            • Legacy processes
    • The Opportunities For The Board
          • For all these non-core functions, the board should look and see if there is an outsourcer who, with the right attention and experience, can deliver more effectively, and more cheaply. With the BPO appetite for taking risk and entering new partnerships, this will unlock value and reveal a potential asset in an area only seen in the past as a burden.
          • People need to consider having their ugly babies adopted!
    • www.wns.com This presentation and any files attached and/or transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. No part of this presentation may be given, lent, resold, or disclosed to any unintended recipients or exploited for any commercial purposes. If you are not the intended recipient and you have received this presentation in error, please return this material to the sender immediately and forthwith delete and destroy the presentation including any copies thereof from your records. We hereby notify that disclosing, distributing, copying, reproducing, storing in a retrieval system, or transmitting in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, or taking any action in reliance on the contents of the presentation in its entirety or any part thereof is strictly prohibited without the prior written consent of WNS, such consent being given at the sole discretion of WNS. Any views or opinion expressed in this presentation are those of the author and do not necessarily represent that of WNS. WNS makes no representations and to the full extent permissible by applicable law, WNS disclaims any warranties of any kind, express or implied, including any warranty of merchantability, accuracy, fitness or applicability for a particular purpose, and non-infringement of third party rights, as to the information, content and materials. For more outsourcing solutions for insurance industry visit www.wns.com/services/insurance Gate No.4, Godrej & Boyce Complex Pirojshanagar, Vikhroli West, Mumbai 400 079 Tel : +91 22 4095 2100 Fax : +91 22 2518 8350 420 Lexington Avenue Suite 2515 New York, NY 10170 Tel : +1 212 599 6960 Fax : +1 212 599 6962 EUROPE The Lodge Harmondsworth Lane West Drayton, Middlesex UB7 0AB Tel : +44 208 754 8289 Fax : +44 208 754 8307 INDIA NORTH AMERICA