- Case study
A newly merged insurance company makes a giant digital leap
Outsourcing cut. Billing processes updated. The Result? Cash liberated
One of the world’s top property and casualty insurers, with more than $160 billion in assets and over 30,000 employees worldwide.
A leap forward with a new digital operating model to improve billing and collection functions—and to free up cash flow.
With six integrated transformational pillars: intelligent automation and digitization; dynamic workflow; analytics and advanced visualization; outsourcing; operating model restructuring; and best-practices implementation.
Challenge
When another insurance company bought our client in 2016, the push was on to cut back on business process outsourcing (BPO) and harmonize the merged company’s billing and collections functions. It looked like a tough proposition. We found an environment plagued by manual, fragmented, people-dependent processes. Plus, poorly integrated legacy systems, which hampered operations at every level, frustrated brokers and employees alike. Clearly, a BPO-only solution wasn’t the answer. To bring BPO in line, we would have to help transform the operating model with precision automation and better technology.
Solution
To drive rapid, end-to-end transformation of billing and collections, all six pillars had to come into play, rolled out appropriately and in the right order.
Impact
Newly transformed billing and collections functions, covering more than 18 unique processes across nine business models, mean the company is on track to achieve a 50% TCO reduction over five years and a reduction in DSO from 65 days to less than 40. Other benefits? Cycle time for dispute resolution is shorter. Error-free processes, real-time decision making, and improved data visibility have significantly improved broker satisfaction. Employees are happier and more productive, too.