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INSURANCE
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"Compressing revenues from flat premium growth, low investment
yields and competition from alternative markets (self-insurance, captives,
affinity groups) all result in increased challenges to profitability." |
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THE
BUSINESS NEED
Those operating in the insurance industry face enormous challenges.
Continued soft pricing, fierce competition, consolidation, mergers, the
entrée of financial services firms into traditional insurance, and loss
of investment income all serve to erode profit margins. This is occurring
while new technology and changing customer needs are creating the ability
to provide new distribution channels.
There is compelling evidence that performance is suffering:
- Expense
ratios in the property/casualty industry of 27.1 in 1997 and 27.2 in
1998 have gradually increased during the 90's. Although lower than the
comparable ratio of 38.5 for commercial banks, the banking industry
has trended downward during the same period.
- Operating
costs remain high for many due to outdated IT environments, expensive
distribution networks, merger integration expenses, Y2K remediation,
and resistance to adopting cost cutting strategies that other financial
services providers have embraced.
LoBue Associates
concurs with industry executives and trade associations that long-term revenue
growth is the key challenge facing insurers, either through organic growth
of a disciplined distribution system or through successful acquisitions.
Revenue growth alone, however, will not yield competitive profitability
levels for all participants; many must undertake some enhancement in their
underlying methods of doing business. There is an active need for improved
operational efficiencies and cost management policies.
THE SOLUTION, REAL EXPERIENCE
LoBue Associates, Inc. helps insurance companies identify their most
rewarding opportunities and ultimately develop and implement sound solutions
to capitalize on these opportunities. Starting with a review of the client's
vision and objectives, LoBue assists management in designing business functions
that optimize profitability, productivity, client service and product quality.
Specific programs with insurance organizations include the following:
- Implementing
significant organizational change to prepare for continued growth and
success.
- Structuring
customer-centered operating processes that improve service quality while
reducing costs.
- Designing
claims and call centers that improve both the quality of customer service
and the efficient use of equipment, software, human resources, incentive
compensation and physical premises.
- Integrating
technological innovation with organizational process design to achieve
maximum business results.
LoBue consultants
then team up with management to provide the training and insight required
for a smooth transition of new responsibilities and functions within the
organization.
REAL RESULTS
Since its founding in 1981, LoBue Associates, Inc. has provided numerous
companies with on-time, on-target, measurable and reliable results in the
insurance sector. LoBue's methodology, services,
training and execution ensure corporate vision and objectives are carried
out, achieving real solutions that create real results.
For more information,
please contact Marketing.
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