Finance Function Diagnostic for Insurance – 2008 executive summary
Like much of the financial services world, the insurance industry today is facing a competitive maelstrom.
Global competition continues its upswing, with significant pressure on margins from offshore providers. Speed and agility are critical dimensions of corporate performance, with tight cycle times for decision-making.
To cope with these and other forces, insurers are turning to benchmarking to identify leading practices that can help them improve and monitor performance of the finance function.
Organizations benchmark performance for very tangible reasons. They want to manage costs, reduce spend, and increase efficiency and productivity. They also want to understand their position relative to their peers, find points of weakness, identify opportunity gaps and make improvements.
Analysis of benchmarking data across the insurance industry reveals a number of advantages that low-cost performers and larger companies enjoy, such as:
- Low-cost performers cost 37 percent less than the insurance median, which nets $7.4 million per $1 billion in total annual premium.
- Larger companies have economies of scale with 20 percent lower costs.
- Larger companies spend 36 percent more on technology than smaller companies, driven by a better ability to capitalize on economy-of-scale opportunities.
Download Deloitte’s “Finance Function Diagnostic for Insurance,” attached below, to learn more.