Now that we know how an integrated plan works—and how technology can make it work even better—it’s time to deliver. Before blazing forward, however, consider this, the production of an integrated plan is a complex activity. Insurers should pay close attention to the following three critical success factors when delivering an integrated plan:
The board plays a significant role in the integrated plan, including reviewing and sponsorship its use across the organization. Senior level sponsorship can encourage different business areas to collaborate. It also emphasizes the need to consider risk and capital information beyond the traditional planned business volume measures.
Establishing consistent segmentation
Implementing a consistent segmentation of the insurance group can standardize the way in which performance is reviewed. It can also create the flexibility to meet differing requirements. Adopting a consistent hierarchy can provide the platform for undertaking detailed technical and financial planning, supported by an understanding of both the asset and liability implications.
Laying out a clearly defined process
An articulated integrated plan produces defined, appropriate and consistent output in line with a managed timetable. It’s often more effective to work existing processes into integrated planning with some realignment, rather than to design and implement from scratch.
The path to high performance for integrated planning is often a multi-year journey, but once achieved, the benefits can be significant. In my last post on this series, I’ll discuss both these areas further.
To learn more in the meantime, download Integrating Risk and Capital Management into Strategy and Planning (PDF; opens in a new window).
Read other posts in this series: