To tackle their biggest challenges and capture the most promising new opportunities, insurance players have launched transformation programs—aimed not only at improving their performance but also at rethinking the way they serve their customers and manage their operations—to become insurers that build for the future.
Our unique formula for insurance transformation is built on the foundation of BCG's core business transformation offering. We partner with our clients to improve their business processes, digitize their operations, strengthen their balance sheets, and grow new businesses—while promoting cultural change, a bias-to-action mindset, and organizational and technical capability upgrades.
Successful holistic insurance transformations focus on more than securing financial, commercial, and operational gains. They pay close attention to how those gains are achieved, particularly with respect to long-term organizational health.
Our research shows that two elements related to organizational health—execution certainty and change management—constitute about 50% of the success factors in a winning transformation. This is why, in our approach, we focus on measures to both boost impact and ensure its sustainability. This dual focus is what successful holistic insurance transformation is all about.
Our experts in insurance transformation help clients improve their performance by developing and implementing well-scoped, pragmatic initiatives using two classes of levers:
At the same time, we ensure that impact is delivered in a durable way by improving the overall health of the organization through execution certainty and change management.
Our approach to achieving execution certainty involves four program management best practices:
Our approach to change management consists of four enablers that activate new ways of working:
When partnering with our clients on insurance business transformations, we leverage our global industry, functional, digital, and analytics capabilities to deliver fast results while changing mindsets and ways of working for lasting impact.
A look at the world’s 100 largest stock-listed insurers shows the advantage of having a strong operating model and advanced digital capabilities—and the increasing pressure for transformation.
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Our experts in insurance transformation have used our approach in a variety of engagements, and the results are the best evidence of the value of our methodology:
We’ve partnered with global property and casualty, life, and health insurance clients to achieve, on average, 2.7 times the impact of the original management plan.
Companies’ scores on the OrgVantage survey have improved by 5% to 20% over 12 months and by 10% to 40% over 24 months.
Clients’ net income has improved, in most cases, by 5 to 20 points.
Large portions of the capital have been optimized to foster expansion and growth.
Our insurance clients that have implemented this approach found greater vitality as they focused on making the right big bets, inspiring and empowering their people, and executing and innovating with agility. These are traits of companies that make long-term, transformational change.
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Successful digital transformations in the insurance industry are often easier said than done. Learn how to start, enable, and scale digital transformation in the insurance industry from BCG’s digital insurance experts.
