The insurance and reinsurance industry is notoriously slow to change, with many companies unable to fully take advantage of innovative new technology. Burdened with legacy systems and constrained by limited funds and resources, CFOs are often reluctant to even contemplate new technology to advance the finance platform.
Executive SummaryFor P/C insurers and reinsurers, transforming the finance platform doesn't have to be a colossal, long-duration exercise with diminishing returns. Here, members of the FTI Consulting Global Insurance Services practice describe some of the tools to accomplish micro transformations—individual "quick-win" projects. When replicated in a series of projects aligned with overall profit and cost-reduction strategies and objectives, the micro transformations can collectively aggregate into broader enterprisewide transformations.
For many companies, transformation of the finance platform is viewed as a colossal exercise of long duration with diminishing returns. This view is underscored by the perceived complexity of the process: conducting current state analysis, future state planning and a detailed gap analysis followed by system selection and a multiyear implementation.
Adding Value Through Micro Transformations
Micro transformations are comprised of smaller projects, rapid deployments, lower financial investments, and immediate successes and returns. While the projects may be smaller, the rewards can be significant.
Each micro transformation is focused on a targeted function but can add value across the enterprise. The success and value of multiple individual micro transformations can quickly build, increasing enterprise performance improvement momentum.