Client Challenges Today
For most life insurance companies, a key challenge is striking a balance between the cost of managing in-force business and the need to fund new product development and strategic initiatives for customer acquisition. As a significant portion of in-force business is closed block, legacy products which are difficult and expensive to convert. While closed blocks are non-strategic, maintaining service standards is essential for retaining customers and safeguarding an insurer’s reputation. Operations and IT costs continue to grow despite a shrinking block of business, resulting in the increase in per policy costs over a period.
The outsourcing of closed block operations can unlock a unique set of benefits. In earlier outsourcing contracts, success was measured simply by cost reduction goals governed by service level agreements. But today, offsetting the financial burden is no longer enough. Insurers are looking for ways to extract additional value from closed block operations by integrating them with an overall client management strategy. Success is driven by cost, customer satisfaction, delivery of services and cross-sell/up-sell opportunities.
Solution and How We Work
Capgemini’s solution for reducing closed block costs combines BPO services along with a technology platform built specifically for closed block processing which includes allows our clients to:
- Automate manual procedures
- Enable support of hundreds of products and product variances
- Use conversion utilities that allow for migration of dirty data that can be fixed as policies are encountered for servicing
- Move back office processes to a low cost location resulting in a quick ROI
Our approach, called bH Matrix, recognizes that each block of homogeneous polices may require a different approach. For blocks that are still premium paying, there is a significant possibility of upsells. By contrast, low-value paid-up policies could be safely handed over for offshore administration. The bH Matrix approach recognizes such differences and harnesses the full spectrum of service available from Capgemini to develop and implement the right approach for each block. Our offerings include:
- Active block servicing and underwriting support. Customer service on active blocks, tele-underwriting, new business acquisition through our call center solutions, and outbound calling for qualifying new business.
- Group Benefits (Claims adjudication, TPA services). Document and image management, claims adjudication and reporting, customer inquiry handling, plan management, accounting and reporting, and more.
Through Capgemini’s services, insurers can reduce operational costs, avoid future capital expenditures, and increase quality, compliance and flexibility. We are a proven provider with a multilingual work force fluent in more than 28 languages and delivery centers in over 20 countries including Argentina, Brazil, China, India, Morocco, Poland and Vietnam. Our approach includes a clear structured roadmap to achieve benefits, is supported by milestones and transparency, and helps insurers achieve cost savings and process improvements beyond labor arbitrage.
bH Matrix is a transformational service offering which lets insurers consider both the business value and technology challenges in administering each block of closed business. Our pricing model ensures that the cost of maintaining and servicing the policies decreases in sync with the reduction in the policy count as closed blocks run off.
Capture competitive advantage with performance-driven policy transformation by contacting us at email@example.com or connect with one of our insurance experts.