Managing Agencies and London Market businesses need to leave no stone unturned in seeking operational improvements and optimisation, but where to focus and what to spend your valuable time and resources upon? Firstly businesses need to establish areas that have the capability to be improved. Being provided with empirical benchmarking helps establish such opportunities.
Operating and administrative expenses are under ever closer scrutiny, evidenced by Lloyd’s thematic review of administrative expenses in 2019, triggered by overall expenses in 2018 averaged in excess of 40% and administrative expenses (within Lloyd’s Syndicates) at over 14%, the need to better understand and optimise has never been more applicable.
With Lloyd’s operating expenses being too high, simply operating below the average cannot be applied as a sign of success. Optimisation to deliver best in class performance should be the goal.
How can you tell how you measure up
Keeping track of certain metrics is critical in determining how your company compares to your peers or even your competition, where you can improve, and where you are excelling, benchmarking helps organisations to identify and score their capabilities and maturity.
Understanding how your business operates and then being able to review that using a model aligned to the functions of your business provides the deep and meaningful insights that can highlight where opportunities lay. But it is when these are combined with peer review assessments that the crucial lessons and resulting actions can be taken.
Building on work we started at Cognitive Risk we have built a capability and operating cost modelling tool that provides the deep insights and understandings. The tool has been specifically built to address the requirements of the Lloyd's and London Market with their unique structures and operating models.
If you want to learn more then get in touch for a demonstration to help you better understand:
How benchmarking really benefits a common group
How this approach has already delivered transformational opportunities
The benefits of holding a detailed operational blueprint and cost allocation, to drive better operational reporting
Altus Specialty Markets are on a mission to drive on digital adoption and transformation within the Lloyd's, London and Global (Re)Insurance Markets. We want to help organisations re-imagine problems by combining Altus' perspectives of INSUR and TECH to define what success looks like for your business and how to get there. Contact us to find out more.