Insurance
Case Studies
Business Process Reengineering for the Commissions Process
Client Overview
An Australian corporation, which is among the top ten banking institutions and top five general insurers, has one of the highest cross-sell rates in the financial sector. The insurance activities of the company cover personal insurance, corporate coverage and workers' compensation.
Business need
Alliances and intermediaries were key growth drivers in the long-term strategy of the client. In order to better manage the channel behavior and meet the organization's objectives, the ability to pay accurate and timely commissions was an important element. This was considered a critical competitive edge and a weak link in client's back office capabilities
This organization paid about AUS$ 90 million per year in commissions which was approximately 20% of its profits before goodwill and taxes. At the same time, it lost significant amount on overpayments and commission leakage
Challenges and Requirements
The following challenges were faced during implementation:
- The existing operations comprised of manual processes using band aid systems which were high cost and presented serious risk
- This organization paid about AUS$ 90 million per year in commissions, which was approximately 20% of its profits before goodwill and taxes. At the same time, it lost significant amount on overpayments and commission leakage
Infosys studied the current operations processes and organizations and identified improvement initiatives that would deliver significant benefits to the client. Infosys recommended a centralized commission management organization and articulated the desired business capabilities for a group commissions solution with the following objectives:
- Coverage of
- Multiple businesses - Insurance, Wealth Management, Banking
- Multiple brands
- Different distribution models - Multiple intermediary types
- Consolidation of several existing legacy systems
- Integration with Product (Hogan, Cogen, etc.), Payment (PeopleSoft) and CRM (Enterprise) systems
- Scalability - large number of intermediaries (>5000) across BUs and 400,000 transactions/ month
Benefits
The benefits of the solution include:
- Identification of the most suitable solution based on a list of quantifiable criteria (cost, project risk/ease of implementation timelines, functionality fit) and a complex evaluation process
- Creation and articulation to the executive team of the business benefits arising from the various initiatives including implementation of an integrated commissions platform
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