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Stratiformis Consulting Ltd, 6th Floor, 37 Lombard St, London, EC3V 9BQ

Outwards Reinsurance Target Operating Model

The Challenge

The administration of Outwards Reinsurance had become fragmented within this insurer’s three administrative centres. The core systems had fallen into marginal use and the department was falling back on a spreadsheet system. Compounding these challenges, in addition, key staff were retiring, there was an increasing operational risk, increased regulatory demands and some high profile processing errors were encountered.

Our approach

We built a team to review the current situation and produce a problem statement that objectively defined the underlying issues. Having then reviewed the as-is operating model, the team then produced and executed the new transformational Target Operating Model that encompassed

  • The splitting of the Outwards Team into a Placing Team and a Ceded Operations team
  • The creation of a new core, Centralised Operations Unit to support all global business
  • The appointment of a new Head of Ceded Operations and the creation of a number of new roles required to robustly support the administration of outwards contracts
  • The implementation of new business processes and redefinition of key interfaces to Finance, Actuarial, Placing and other business units
  • The reimplementation of the core administration system and a reduction in the reliance on spreadsheets.

The Outcome

The Operating Model was implemented and provided a new scalable, robust platform that reduced the operational risk to the insurer, provide a better service to its clients and enabled it to meet its regulatory obligations. Resulting from the implementation of the new operating model, the business function was stabilised during the changeover of key members of staff, capturing valuable experience and avoiding the loss of expertise.

The re implementation of the core administration system resulted in the retirement of fallback processing on spreadsheets and increased transparency of claims recovery outcomes and reinsurance vehicle performance. Furthermore, cross functional working practices improved and confidence was restored between business units, and re-work eliminated in favour of data quality assurance.

Testimonials