Our client was one of the largest insurance groups in the UK; owning a range of market-leading underwriter/legal-services brands and dominating the UK motorcycle insurance market.
Our clients’ brands have developed a range of brands tailored to meet the differing demographics of their clients which are distributed through varying methods. Primarily as a digital specialist, their main distribution channels are through price comparison websites, direct traffic via their own website and call centres and via affiliate and affinity partners.
Oculus were engaged to lead a range of initiatives to identify areas in which our client’s various group companies could look to share operational processes, supply chains, share best practice and complement each other’s operational capabilities.
As part of this strategy, we were asked to undertake a review of our client’s approach to procuring ancillary products and lead a tender to consolidate supply chains and leverage the demand of the combined organisations.
Our approach was to lead a comprehensive RFP process and engaged with the leading UK and international underwriters/intermediaries. The RFP process had a number of strategically aligned objectives, which had to be balanced against a backdrop of regulatory constraints;
- To leverage volume and improve margin
- To secure a benefit-rich product portfolio adheres to all regulatory obligations.
- To validate or improve the management and monitoring of customer satisfaction; executing the policy sale journey; complaint handling and resolution; claims management process, and their approach to supply chain management
- To identify opportunities to enhance cover to improve customer outcomes
- To broaden the range of ancillary products that may be marketed
This highly complex project saw Oculus leading an RFP process over two stages and undertaking a highly comprehensive due diligence process and cost modeling, which included;
- Outright cost and margin affect
- Underwriting processes
- Claims handling and management
- Policy wording reviews
- The management of policy administration
- The customer journeys
- How providers would support our client’s marketing activity in terms of promoting and publicising the range of ancillary products that may be available.
The project was a great success. The RFP process has enabled our customer to consolidate its supply chain dramatically, in doing so reducing internal operational costs and improving customer experience.
This consolidation has also enabled all parts of the group to align with common policy wordings and ancillary product structures.
Lastly, cost savings/margin improvements; our client saw a 10% cost reduction across the product portfolio whilst maintain and improving the levels of cover offered.