Key Drivers, Strategies and Methods in Outsourcing the RunOff Lee Brandon, CEO, PRO Insurance Soluti - PowerPoint PPT Presentation

Loading...

PPT – Key Drivers, Strategies and Methods in Outsourcing the RunOff Lee Brandon, CEO, PRO Insurance Soluti PowerPoint presentation | free to view - id: 1f99c0-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Key Drivers, Strategies and Methods in Outsourcing the RunOff Lee Brandon, CEO, PRO Insurance Soluti

Description:

The skills required for the outsource ITT and ongoing outsource management? ... Success comes from building a partnership founded on trust and transparency ... – PowerPoint PPT presentation

Number of Views:47
Avg rating:3.0/5.0
Slides: 18
Provided by: prol5
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Key Drivers, Strategies and Methods in Outsourcing the RunOff Lee Brandon, CEO, PRO Insurance Soluti


1
Key Drivers, Strategies and Methods in
Outsourcing the Run-Off Lee Brandon, CEO, PRO
Insurance Solutions Limited Andrew Brannon,
Director, LCL Group Limited
2
Agenda
  • Why consider outsourcing?
  • To what extent does outsourcing provide a
    solution?
  • Types of outsource
  • Different stakeholder goals
  • A four phase approach to outsourcing
  • Summary
  • Questions

3
Why outsource typical goals
Reduce Cost
Focus
Reduce Risk
Improve Balance Sheet
Match Skills to Needs
Enhance Reputation
4
Key business drivers
  • Understanding the liabilities
  • Data integrity
  • Minimising liabilities
  • Maximising assets
  • Managing Cash flow
  • Controlling costs
  • Motivating staff
  • Facilitating an exit
  • Managing risk

5
Common problems/constraints
  • Retaining the knowledge and key staff
  • Meeting the different demands of run-off
  • Ensuring continuity of service during the
    outsource
  • Fulfilling the long term objective, closure and
    improvement in balance sheet

6
To what extent does outsourcing provide a
solution?
  • A specialist has skills and understanding geared
    towards run-off solutions, understanding that
  • run-off requires a specific focus and perspective
    to deal with the key issues
  • every portfolio is obviously different and
    requires a different emphasis in terms of
    objectives
  • The outsourcer should be able to
  • manage the resource levels and skillsets to meet
    your specific needs
  • facilitate a range of exit solutions
  • access their existing network of contacts for
    your benefit
  • align their interests with yours sharing in the
    upside/(downside)

7
What outsourcing shouldnt be about
  • Replacing like with like it should
  • be proactive in seeking a solution, i.e. not
    run-on
  • be more cost-effective
  • manage risk
  • generate value
  • You abdicating responsibility
  • You should still have control
  • You must have a part in monitoring/managing the
    run-off

8
Different stakeholder goals
  • Who are the Stakeholders?
  • What represents value to them?
  • Can all receive value?
  • Who holds the power?

9
Where does the power lie?
  • This weeks Top 6 count-down
  • Influence over shaping the strategy and the
    format which value is delivered

10
Types of outsource
  • A range of options are available
  • Full outsource all run-off activities
  • Functional outsource specific aspects, e.g.
    credit control, accounting
  • Project outsource specific objectives, e.g.
    commute with particular (re)insurer
  • Outsource can involve one provider, or many
    either through a main provider or directly
  • Each has a its own advantages and disadvantages

11
An approach to outsourcing?
12
Strategy stage
  • Define What, When and Why
  • Consider
  • The relationships with the various stakeholders,
    including the outsourcer
  • How you and the outsourcer will manage the change
  • How to ensure alignment between your interests
    and the outsourcers
  • The skills required for the outsource ITT and
    ongoing outsource management?
  • Outsourcing requires your commitment.
  • Now is the time to consider and prepare.

13
Evaluation and selection
  • Structure a beauty parade
  • Look for specialists that match or improve on the
    skills required
  • Screen
  • Due diligence stage
  • Be prepared to provide detailed data
  • Be prepared to provide access to staff
  • Be as open as you can
  • The proposal
  • Look for understanding and a tailored proposal
  • Look for strength and depth
  • Be prepared to be challenged by the outsourcer
  • Assess value of service vs. cost, ability to meet
    your objectives
  • Trust and transparency the tender document is a
    guide!

14
Transition and transfer
  • The right contract and deal
  • Ensure you can measure performance against
    requirements
  • Agree plans with milestones
  • Flexible - a contract that can evolve over time
  • Manage the transfer you and the outsourcer
  • Continuity is key
  • Communicate to stakeholders as early as possible
  • Initially its about integrating people processes
    and technology
  • Knowledge exchange

15
Manage and review
  • The ongoing outsource requires your management
  • Consider how you will structure this internally
  • Define roles and responsibilities
  • Define how you appraise performance and provide
    feedback
  • The outsource is still a partnership work
    with the outsourcer to achieve the business goals.

16
Summary
  • Run-off can be as much about managing corporate
    reputations as it is about managing discontinued
    liabilities
  • In practical terms run-off managers represent
    companies in the market place
  • Success comes from building a partnership founded
    on trust and transparency
  • It is important to select the right partner
  • Interests should be aligned
  • With an outsource you still have a part to play

17
For further information please contact Lee
Brandon Andrew Brannon t 44 (0)207 337
8911 t 44 (0)207 398 5600 e
lee_brandon_at_pro-ltd.co.uk e abrannon_at_lcl-group.c
om
Understanding clients, building partnerships
About PowerShow.com