WNS Case study - Insurance Center of Excellence


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WNS helps reduce operating costs by GBP 1.3 Million by building an advanced middle office Center of Excellence for a leading global insurance player. Case Study is also available at http://bit.ly/ODCAMM

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WNS Case study - Insurance Center of Excellence

  1. 1. Industry General Insurance Process Data and AnalyticsWNS helps reduce operating costs by GBP 1.3 Million bybuilding an advanced middle office Center of Excellencefor a leading global insurance playerThe client – a leading multi-line insurance provider working discontent and an overall deterioration in customeracross life, general and health verticals – was looking for satisfaction. The client identified people management andinnovative solutions to adapt to the dynamic operational service quality as the main concern areas that neededlandscape. The focus was on combining high levels of immediate attention. In order to restore stakeholderoperational expertise, tight financial discipline and confidence and customer satisfaction, the client had totechnological excellence to deliver stronger balance sheets. surmount the following challenges: Multiple n stakeholders with varying degrees of experienceTo achieve these objectives, the client sought to improve its in offshoringMIS functions to deliver consistent profitable growth.Its goal was to set up a Center of Excellence (CoE) that Reliance n on manual data collection and use of disparatewould harness the power of predictive analytics and help measuring systemsthe company draw better insights into business operations. Inconsistent n data leading to ineffective insights from analyticsThe CoE would enable the client to achieve better returnson people investments, improve operational effectiveness Lack n of ownership of the processesand lower costs, leading directly to superior products, Limited n quality and quantity of documentationbetter claims and underwriting management. After rigorous and process undertakingdue diligence, which involved significant knowledge-related Adverse n overall efficiency that distanced reportassessment, the client decided to partner with WNS for generators from business contextbuilding a CoE for the MIS function. Varied n skill sets and competencies leading to ineffective resource utilizationThe Clients ChallengeThe clients MIS team, spread across two diverse Lack n of synergies between the reporting and analyticsgeographies, was providing analytics and reporting services team resulting in duplication of efforts and inadequateto multiple stakeholders, generating close to 4,000 reports knowledge sharingper month. However, complex and disparate data sources, Shortage n of resources hampering technology-drivenand a silo-operating model led to duplication and resulted reporting and insights deliveryin multiple versions of the truth. The consequence was Team n focus divided between supportunstable reporting to high-value corporate partners, causing and developmental activitiesCopyright © 2012 WNS Global Services | wns.com Industry: General Insurance | 01
  2. 2. Weve made it difficult for ourselves and have The key directives were to: over-engineered things for structural reasons Enhance n efficiencies: Eliminate redundant work, at the expense of being more effective cut overheads, streamline processes - A Client Representative Improve n compliance with global standards Bring n in globally accepted best practicesThe Premise A three-year transformation process was mutually agreedWNS conducted an on-site diagnosis to explore the depth upon by the client and WNS, with the premise that it wouldof the clients challenges and suggest a new operating model be implemented in four phases.to leverage an offshore Center of Excellence. Phase 4 Create shared services model and one version of the truth The way ahead Phase 3 Build economies of scale / leverage business knowledge Milestonesachived, so far Phase 2 Standardisation and efficiency gains Phase 1 Set up CoEFigure 1: Represents the four phases of the transformation process, completion so far and the way aheadIn the coming two years, WNS will work closely with the The WNS Approach and Solutionclient towards building a single version of truth, bring more Before designing the solution, analysis was done at threefunctions under the CoE umbrella, further automate the key levels:reporting and insights function; and finally move up thevalue chain with more analytical modeling. Maturity Transition Cost-benefit Design Transition Transform Senior n management overseeing delivery Buy-in n from senior management to help Knowledge n optimization work: of customer demand deliver and sponsor new model Governance, Program management Onshore n Account Manager to ensure Work n collaboratively with WNS Culture n change: accurate delivery and value-add to ensure the right recruits Change and communication to the customer management Invest n in knowledge transfer Senior n Management focus on MIS and operating protocols Measure n improvement and value-add from strategy and design / direction M&I: Performance management, quality n extensively Plan for technology with offshore and KPI-driven rather than solely being enablers (Citrix / data / speed efficiency and SLA-driven Analytics n lead from onshore, and reliability) with offshore execution and Manage n continuity of service knowledge transfer on / offshore Senior n Management focus on Change Retain n key associates onshore portfolio and delivery Redeployment n of displaced people - 85% redeployed internallyFigure 2: Represents the WNS approach to the problemCopyright © 2012 WNS Global Services | wns.com Industry: General Insurance | 02
  3. 3. The analysis threw up some insightful information WNSs Four-Phase Transformation Solutionand identified bottlenecks across four specific areas: Having assessed the business case, the WNS analytics teamPositional:n The MI team was not seen as critical to put together a solution to build efficiency and effectiveness business operations by key stakeholders and was placed by using a combination of people, processes and technology. in between data owners and end-users During the compilation of this case study, phase 1 had beenOperatingn Model: An inappropriate operating model focusing completed; phase 2 was nearing completion; and the on efficiency and quality, and in turn, moving the MI team transformation process had made progress into some of the away from the business. Incidence of human and process important steps of phase 3. breakdowns and duplication of reports within and outside the MI team. Inconsistent planning across business units and limited insights Phase 1: Setting up of the Center of Excellence (CoE) After an in-depth analysis of the clients business, WNSTechnology:n Ineffective MIS as a result of gaps in data assembled a 50 FTE team in Bangalore, India. The overall availability, sub-optimal architecture and inefficient Extract, team balance is now 40% onshore and 60% offshore. While Transform and Load (ETL). Limited use of flexible reporting the offshore arm focuses on delivery, the onshore arm tools and methodologies is customer facing and interacts with the client and managesGovernance:n Governance concerns related to inconsistent the show at the clients end. definitions, inappropriate data governance and protocols, and high risk of failure between systems and MI production Capacity, Standardization CoE ce Value Creation en Analytics & Technology ell xc Solutions Complexity, Capability fE Predictive models ro nte One Stop reporting Ce Portal / data mining ore Business Intelligence sh Off Reporting & Insight Services Reporting & Dashboards Ad hoc Business Analysis Data servicesFigure 3: The Center of ExcellencePhases 2 and 3: Standardisation & Efficiency Gains. Decision-support n by delivering actionableBuilding Economies-of-Scale / Leverage Business insights and analyticsKnowledge Risk n management and control via governance,The second phase of the transformation process is nearing program management and performance managementcompletion and some important steps towards using KPIs and SLAsimplementing the third phase have been taken. Improved n efficiency through automation of standardWNS has delivered the following so far: reporting procedures and technology-driven data miningEstablishedn a strong transition, complete in all respects A knowledge n armoury establishment, which utilizes and steady-state business-as-usual the knowledge gained through experience in addressingRe-alignedn and optimized analytics futuristic business requirements resources - both onshore and offshore Fraud n analytics model built offshore in partnershipAlignmentn to clients strategic goals with the onshore teamCopyright © 2012 WNS Global Services | wns.com Industry: General Insurance | 03
  4. 4. Benefits Delivered by WNSSo far, WNSs solution has yielded benefits and helped the client address issues relating to customer satisfaction andpeople management. Figure 4 provides a brief summary of the key benefits delivered: Reduction n of GBP 1.3M M&I One central n hub of expertise Onshore Operating costs by Additional n of knowledge with continuous delivering a bespoke client CoE working (Learning) at no extra cost Efficiency n through economy of nefficient More than current scale, low-cost location and disparate organization technology improvement Ce ntr sts al o Lea gC rni tin ng era Hu Op b Insights n from the CoE offer One stop n shop ensures control and Reduced n Operating Costs actionable intelligence to internal Revenue Growth quality initiatives that start from business users which help translate Control and Quality (GBP 4.4 Million over 5 years) research / analysis and disseminate this into profitable growth apart from Sharper n Competitive Edge downstream in business decisions costs / efficiency gains Increased n Revenue Resolves n internal conflict Better n Management Decisions Helped n save 634 hours so far, in improvement activities Tec hni Customer n data is technology goldmine only cal ge Ed if unlocked and deployed in the form of Eff ici gic enc ate y Str actionable insights via insights generation Concentration n of resources and using analytics and databases along with people expertise to A learning n hub provides operate / leverage these a competitive leverage Excellent n documentation, Strong n stakeholder engagement and knowledge management effective project management through and data security standards a complex transition Fast and n effective recruitment of skilled resource, with skill sets matched to client and project requirementFigure 4: Benefits Delivered by WNS nabout By six months, the team started addingEnabling Outperformance insights and commentaryThe implementation of the first two stages of the Centerof Excellence is helping the client drive higher levels Additionally, the WNS solution brought severalof business value through reporting actionable benefits that include:insights and analytics. Cost n savings through labor arbitrageIt is helping rationalise reporting while streamlining and Improved n customer support and economies of scaleimproving control systems. The client is now able to use through better resource utilizationpredictive analysis to drive insights in support of claim loss, and improved controlsfraud detection and loss prevention. The milestones End-to-end n accountability for business resultsachieved within a year of the project launch are as follows: and target transformation while jointly leveragingTwon months after the go-ahead, recruits were being its internal assets and those of WNS trained in the UK. Three months later the team Consolidation n and standardization of the processes was doing work offshore and rationalized platforms across the businessCopyright © 2012 WNS Global Services | wns.com Industry: General Insurance | 04
  5. 5. Laurels for the teamA year into the transition, and the end state team comprising The award reflects the uninterrupted delivery performanceof 40% onshore client employees and 60% offshore WNS during the transition, high level of motivation and engagementemployees won the ACE Award (Customer excellence award of the team and the significant rebuild activity for the keyconstituted by the client) as the best internal team within the corporate partner deliverables which restored confidence ingeneral insurance division. The ACA is awarded annually, the overall service.in nine categories, including best internal team, bestexternal team, best innovation and so forth. Within theclient organization, many believe, that getting shortlistedis in itself a significant achievement. Winning the awardis a milestone! For more information or to learn about our service offerings, please click here or write to us at marketing@wns.comCopyright © 2012 WNS Global Services | wns.com Industry: General Insurance | 05