Industry Benchmarking Study: Operations and ITConsumer Products
Our client was a Singapore based Investment Bank, working on a larger project for a leading multinational insurance group. In pursuit of operational excellence and cost efficiency, the ultimate client requested an Industry Benchmarking initiative targeting the Indian insurance landscape, covering Life Insurance, General Insurance companies as well as shared services operations and out-sourced vendors.
Our objectives were threefold:
- Identify ‘Best In Class’ peers within the Indian insurance sector, focusing on Operations & Technology Cost Efficiency.
- Uncover the gaps and drivers underlying Operations and IT costs.
- Formulate high-level strategies to bridge identified gaps and optimize resource allocation.
Navigating the Complex Terrain
Our journey was not without challenges, particularly in the area of limited published data and the unique landscape of the insurance industry:
Navigating Limited Published Data: The insurance sector’s intricate operations posed a challenge due to the scarcity of comprehensive published data. This scarcity called for innovative approaches to collect, assimilate, and analyze information effectively.
Engaging Peer Group Companies: Collaborating with peer group companies to gather granular data required a delicate balance of trust-building, shared benefits, and alignment of interests.
Designing an Effective Approach: Developing an approach to data collection, encompassing internal, external, and cross-industry sources, demanded careful planning to ensure robust, actionable insights.
Showcasing Shared Benefits: Convincing participating companies of the mutual benefits in terms of enhanced operational understanding and strategic insights was a pivotal challenge.
Contextualizing Limited Data: With a dearth of published benchmarks, contextualizing the collected data within the broader industry landscape required innovative interpretation techniques.
Scope:
a. Scope and Plan: We defined the scope, outlining a meticulous plan to benchmark Operations & IT costs across diverse insurance domains.
b. Data Collection: Our approach encompassed a blend of published data, key stakeholder interviews, comprehensive team research, and sophisticated data modeling.
c. Analysis and Recommendation: Leveraging the collected data, we conducted an in-depth analysis to draw meaningful conclusions and actionable recommendations.
Principles: A Path Towards Efficiency
Our approach was guided by fundamental principles that laid the foundation for actionable insights:
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- Transformational Exploration: We systematically identified potential areas for transformation aimed at cost reduction.
- Vendor Engagement: Through strategic negotiations, we engaged with vendors to streamline cost structures.
- Informed Discussions: Arm’s length discussions with internal service providers facilitated unbiased assessments and viable solutions.
Coverage: A Holistic View of the Industry
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- Life Insurance Companies
- General Insurance Companies
- Back-Office Outsourcing Companies
- IT Infrastructure Providers
- Voice Operations Companies
Data Collection Approach: Insights from Multiple Perspectives
Published Data Compilation: We systematically compiled data from publicly available sources to enrich our understanding of industry dynamics.
Internal Data Compilation: We engaged in data collection within the client organization, gaining insights into their unique operational landscape.
External Data Compilation: A comprehensive collection of external data sets allowed us to contextualize industry benchmarks.
Key Stakeholder Interviews: Interviews with internal and external key stakeholders provided firsthand insights into operational intricacies and cost structures.
Data Modelling: Robust data modeling techniques allowed us to distill insights from complex datasets.
Empowering Operational Excellence
The culmination of our efforts yielded profound outputs:
Thorough Data Analysis: A detailed analysis of benchmarked data highlighted cost efficiency and performance metrics.
Strategic Recommendations: Our insights paved the way for actionable recommendations to bridge identified gaps and enhance cost efficiency.
Comprehensive Industry Report: We presented our findings in a well-structured and insightful report, tailored to the General Insurance and Life Insurance sectors.
