Can Operational Excellence Transform the Insurance Industry?

At heart, Operational Excellence is an element of organizational leadership the employs numerous methodologies and tools, focusing on the sustainable improvement of outstanding performance metrics. But what does this mean for professionals in the fast-paced and highly competitive world of Insurance?

With a constantly changing set of expectations from customers and capabilities coming from technological advances, one of the key ways Operational Excellence is changing the face of Insurance is via the need for organizational speed. Whether it's the introduction of Lean Practises in the workplace or achieving a culture of continuous Improvement, Operational Excellence is helping insurance companies streamline, from transforming and modernizing the legacy estates to simply getting products to market quicker.

WATCH NOW: MassMutual Financial on Lean Leadership, Leadership Buy-in and Streamlining Efficiency within the Insurance & Financial Services Company

3 Key way Operational Excellence could Transform Insurance

# 1: Scale & Profitability in Insurance

Insurance, Financial Services, Banking & Capital market organizations are all facing the challenge of fast-growing start ups, and their ability to scale profitably. This landscape can breed uncertainty, particularly when it comes to typical 'heavyweight' organizations. 'Insuretech' start-ups, the growth of 'micro-insurance' policies, and more express the rapidly changing state of the Insurance Industry. This Accenture report, for example, argues that Operational Excellence is driving efficiency in Insurance companies through Operational Excellence in Outsourcing.

#2: Process Optimization/Automation and Operational Excellence in Insurance

The rapid expansion and use of automated technology solutions in Insurance speaks to the increasingly crucial need for digital transformation in this industry. However, as more and more solutions are utilised and adopted, customers expect a level of efficiency and quality beyond simply technical efficiency. As with many industries, these expectations include a top-calibre experience for the customers, as well as operational efficiency and innovative solutions to errors/complaints. In this sense, the adoption of Operational Excellence goes hand in hand with the adoption of process automation and other tech innovations.

#3: AI, cognitive learning and machine learning.

AI has been bandied around as a material disruptor. On the back of collecting/orchestrating the data, it's critical to drive material insight and intelligence from this and allow organizations, brokers and consumers to make subsequent decisions. In 2017, AI will come of age with some impressive examples, including voice. In 2016, Amazon's Echo and Google Home product launched, as well as some insurers — like Liberty Mutual— giving voice a try. Imagine asking freely, “Am I covered for...?” or, “What's the status of my claim?” Adding this skill to the mix will likely be table stakes. In addition, AI will augment other solutions to drive value, e.g. robotic process automation. All of this boils down to getting a better grip on the amazing data we have already, while leveraging the vast open data sets available to us.

What is Operational Excellence?

More Operational Excellence in Insurance Resources:

Operational Excellence Insurance - Full Speaking Sessions

Mutual of Omaha: The Critical Role of Culture in Strategy Execution

Vanguard: Designing and Preparing for the Business Future with People, Process & Technology

National Flood Authority, an AON Affinity: Leaning Out of Six Sigma

EVENT: The Operational Excellence in Insurance Summit, June 26-28, 2018, New York

The Operational Excellence Insurance Summit is coming to New York in 2018 to bring together the best Continuous Improvement, Operational Excellence & Business Transformation professionals in Insurance. Join us in NYC to discuss and determine the future of Operational Excellence amongst peers in your industry, as well as learning real take-home strategies from the best of the best.

LEARN MORE ABOUT THE OPERATIONAL EXCELLENCE IN INSURANCE SUMMIT

More Operational Excellence Insurance Resources

Operational Excellence: What is it? Strategy, definitions and more

To get an idea of how Operational Excellence is perceived across a huge range of industries, take a look at our FREE 6 in 1 report series, 'Operational Excellence: Snapshots', featuring the thoughts of 150+ Operational Excellence Professionals, and targeting the most pressing issues in the ecosystem.

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Award-Winning Operational Excellence Case Studies

Download the free case studies now, or view the full list of award-winning Operational Excellence case studies, courtesy of the Business Transformation & Operational Excellence World Summit.