Operational Benchmarking

» Benefits of Benchmarking

Benefits of Benchmarking The insurance industry is competitive and top performers excel at managing expenses and the efficiencies of their operations. The challenge is to know where to focus within the operation to achieve optimum performance. Operational benchmarking is a proven tool used by organizations to help define a practicable strategy for moving forward. The benchmarking process compares your internal operations to the operations of other similar companies. It gives you a clear picture of expense improvement opportunities and areas to increase investment. The primary benefits of operational benchmarking include:

  • Reduce expenses
  • More effective management
  • Optimize resource allocation
  • Precision focus on top priorities
  • Balance the pay for performance equation
  • Understand economics of different geographies and product mixes
  • Support risk management, regulatory pressures

Ward Group is the premier source for in-depth apples-to-apples insurance industry benchmarking and our accumulated data serves as the lifeblood of every project we undertake. Our proprietary annual benchmarking process is unparalleled, giving us the ability to evaluate numerous operational metrics in key functional areas. We conduct detailed analysis of staff levels, revenue, expenses, and operations for the entire organization and provide granular benchmarks to help our clients measure the operating performance of their company compared to other insurance companies.

Our programs include a variety of benchmarking options ranging from an overview perspective of the entire company to drill-down programs that focus on key functional areas for both property-casualty and life-health insurers.

Benchmarking Programs Property-Casualty Life-Health
Total Enterprise
Finance
Information Technology
Claims
Underwriting

Our Benchmarking Process - Normalizing the Data

The Ward Group benchmarking process starts with information taken directly from the general ledger. Experienced analysts examine the data for each company, consider the differences in operating structure and map it into a common framework. Companies operate with different distribution systems, product focus and operating models. Our benchmarking approach segments companies by major operations to make the output meaningful for both internal and external comparisons. When you compare the data to other companies that have gone through the benchmarking process, or between various business units or operating regions of the company, the result is true apples to apples performance measurements. We provide very detailed benchmarks by function that are not publicly available and cannot be replicated internally.

The data helps the company to:

  • View all business units from a common framework and more effectively manage the organization as a whole.
  • Conduct a meaningful analysis of performance based on product mix
  • Identify areas of poor performance

Contact us

For more information about Ward Group operational benchmarking programs, contact Charlie Gall.




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