CASE STUDY: Delivery of a UK Organisation’s Insurance Strategy
Context
The insurance business of a well-known UK organisation wanted to radically change its business model,
from being a white-label operation where business was administered through a variety of third parties, to
carving out its insurance business by setting up a new company (NewCo) hosted in the cloud and
administering the business itself. There was also a burning platform as the third-party travel insurance
provider had given notice and would cease service within 9 months.
A boutique change consultancy was engaged to manage the first two phases of the execution of the
strategy. A Camelot expert was part of the 4-person core programme team.
What we did
The first phase saw the setup of a NewCo MGA (initially regulated as an Appointed Representative before gaining regulatory approval), development of a new product with a new capacity provider, new arrangements established for a call centre and back-office operations, a tactical system implemented and transitional service arrangements (TSAs) agreed. The Camelot expert was responsible for all technical and operational integration between the organisation and the NewCo.
For the second phase, acting as transformation director, the Camelot expert led the programme to select and implement a new strategic policy admin system (PAS) and develop and implement a new operating model, this included:
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Overall responsibility for programme delivery (multiple business and technical workstreams)
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The RFP process to select a new platform and vendor
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Input to contract negotiations
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Management of key third party suppliers
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Implementation of a tier-1 PAS in 10 months following contract signing for the travel insurance product
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Development and implementation of a revised operating model for the NewCo
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New customer journeys for call centre, digital and retail channels
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Migration of over 2 million customer records
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A rebranding exercise including physical and digital collateral
Resulting Business Benefits
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Validation that the strategy to carve-out was the correct one:
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Successful initial implementation and migration from the exiting third party (phase 1) saving over £6m p.a. in third party costs
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Successful implementation of phase 2, on time and on budget
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10% productivity increase (with enhanced data capture) for the retail customer journey
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Greater control over product development and pricing
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Enhanced reporting and data provision providing insights for better decision making
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Reduced time and cost for product and system changes
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A programme template established for subsequent lines of business including home and motor.
