Insurance
Portfolio of risk
By definition, insurance is all about successfully managing the future through the quality of present-day underwriting decisions. For general insurance this means managing the portfolio of risk so that losses due to a single catastrophic event can be managed within acceptable limits. It also means being alert to the long-term potential profitability impact of consistently under-pricing certain types of business.
Additionally, insurance companies need to look beyond purely financial outcomes of performance, since non-financial issues such as customer service levels, the efficiency and effectiveness of business processes and motivation and skills of staff are of critical importance in achieving competitive success.
Analysis and prediction
Tracking and predicting performance requires line management, underwriters and the financial analysts supporting them to continually ask questions about business performance and receive immediate answers that help stimulate further curiosity. Traditional reporting with its 'walls of numbers' lacks the ability to review information from different points of view, such as long-term trends over time or the correlation of one performance factor with another. Adopting management information techniques that emphasise trends and future scenarios and focus on forward-facing indicators will help insurers to capitalise on the opportunity to manage the future.
Key questions that might be addressed with Metapraxis techniques include:
Portfolio of risk
By definition, insurance is all about successfully managing the future through the quality of present-day underwriting decisions. For general insurance this means managing the portfolio of risk so that losses due to a single catastrophic event can be managed within acceptable limits. It also means being alert to the long-term potential profitability impact of consistently under-pricing certain types of business.
Additionally, insurance companies need to look beyond purely financial outcomes of performance, since non-financial issues such as customer service levels, the efficiency and effectiveness of business processes and motivation and skills of staff are of critical importance in achieving competitive success.
Analysis and prediction
Tracking and predicting performance requires line management, underwriters and the financial analysts supporting them to continually ask questions about business performance and receive immediate answers that help stimulate further curiosity. Traditional reporting with its 'walls of numbers' lacks the ability to review information from different points of view, such as long-term trends over time or the correlation of one performance factor with another. Adopting management information techniques that emphasise trends and future scenarios and focus on forward-facing indicators will help insurers to capitalise on the opportunity to manage the future.
Key questions that might be addressed with Metapraxis techniques include:
- Are we writing more commercial business than we planned, at the expense of profitability?
- Is there a correlation between commission ratio and claims ratio across different classes of business?
- How do our market share trends in key product lines compare with that of each of our main competitors?
- What is the variability in performance of individual salespeople, and how does this compare by region?
Client benefits
"We needed to demystify finance so we could communicate with all managers in the business, and ensure a clear understanding of the issues. Metapraxis showed us how we could do this – in a way which is easily understandable to managers from all departments."
FD, General Insurance Company