What they wanted
A major life insurer sought a sustainable solution for an onerous core product. It was important to determine the price level required to offer a competitive product. As competitive pricing must fit a certain cost level, the latter needed to result from a suitable value chain setup. Moreover, it was crucial to consider the potential conclusion that all this would not be feasible. In that case, what alternatives and recommendations could be discussed?
What we did
We conducted a factual, product-level analysis, taking the organization’s method of cost allocation into account. To determine the basic case, we considered costs in the value chain as well as projected revenue developments. Then, we used fixed targets to map out the required cost levels. Furthermore, we explored the savings potential for several scenarios – at an internal level, but also with external parties.
What we achieved
We created support among senior stakeholders based on a validated and factual analysis in a complex, sensitive file. The decision to leave the market for this product and serve existing customers through closed book was therefore inevitable.
What they said
“IG&H provided great guidance on this highly sensitive file.”