Company Infrastructure (Finance, IT and Risk Management)

Human Resource Management

Risk Management

Corporate Governance

Product Development,
Policy Administration Claims/Benefits Asset
Underwriting and Marketing and Sales
and Servicing Management Management
Pricing

Step 1: Primary Activities

Product Development, Underwriting

Policy Administration Claims/Benefits Asset
and Marketing and Sales
and Servicing Management Management
Pricing

Step 2: Cost and Importance

Product Development,
Policy Administration Claims/Benefits
Underwriting and Marketing and Sales Asset Management
and Servicing Management
Pricing

cost to develop a product; transaction processing cost; Adjudicate claims; claims Transaction costs; portfolio
Market research costs, Advertising fees, commissions customer service cost (i.e. review costs (ie salaries of manager/ analysts fee (i.e.
underwritng & actuarial fees salaries or outsourcing fees ) claims analysts, clerk etc) salaries or professional fee)

Mid Importance Mid Importance High Importance High Importance High Importance

Step 3: Cost Drivers

Product Development,
Policy Administration Claims/Benefits
Underwriting and Marketing and Sales Asset Management
and Servicing Management
Pricing

No. and complexity of product no. of sales agents, no. of New policy volume; no. of
no. of investment
proposals; no. of actuarial campaigns (print, broadcast, new applications; no. of
no. of claims transactions; no. of reports
engagements; project/ outdoor , digital); no. of policies issued; no. of phone
and analysis
research hours prospective clients calls;

Step 4: Link Between Activities

Product Development,
Policy Administration Claims/Benefits
Underwriting and Marketing and Sales Asset Management
and Servicing Management
Pricing

With the increase in the no. of

With increasing no. of
claims, the company should
The higher the viability of a application and new policies,
With extensive marketing and make sure that funds are
new product developed, the the more administrative
sales effort, the more new placed in a profitable
more marketing effort to be transactions requiring
applications and new polocies investment. Hence, this
exerted and the more customer service and also the
to be issued requires, proper asset
knowledgeable agents needed no. of claims may also
management, risk
increase
management and reinsurance.

Step 5: Opportunities for Reducing Costs

Product Development,
Policy Administration Claims/Benefits
Underwriting and Marketing and Sales Asset Management
and Servicing Management
Pricing
Design apps or models help to
predict the effectiveness
Business intelligence for CRM affecting product of the portfolio in different
Leverage RPA to assign a ‘robot’ to do repetitive task while
development and Marketing and sales (this includes customer established economical
process owners can focus on their responsibilities and analyze
profitability analysis, customer life time value, customer scenarios
special process cases
segmentation, and campaign and cross-selling analysis etc.) as well as the future need of
the insurer for
working capital.

Digital insurance

Multidimensional OLAP
simplifying collective and analysis for
other report elaboration with the claims data analysis
detailed and aggregated data, according to customer
to shorten the response time segments or geographical
for client inquiry factors in order to estimate
future claims more accurately