Last week, I outlined the four components of an innovative operating model, explaining how it enabled the agility that insurers need to drive growth and improve profitability. But let’s dig a little deeper and examine exactly how this works.
Benefits of an innovative operating model
Executed well, an innovative operating model can help insurers:
- Lower operational IT costs. As shown in the figure below, insurers can realize cost reduction of up to 30 percent.
- Provide additional underwriting capacity, either by automating functions or shifting responsibilities to skilled, lower-cost resources.
- Increase the speed, efficiency and agility of quoting and issuing a policy.
- Improve customer retention through enhanced customer experiences.
So how can an insurer design an innovative operating model that aligns with their overall business strategy? Find out next week.
To learn more, download Running Your Business for Growth: Could Your Operating Model Be Standing in the Way? (pdf; opens in a new window).