How can BIOLAP help?
Market conditions, including rates and FX, continue to present real barriers to meaningful top line brokerage growth. This is focusing insurance intermediaries on the critical need to manage costs and profit margins to sustain business growth and development.
Sustainable revenue growth, cost reductions and process improvements can only be achieved where meaningful management information targets the root causes that inhibit profit growth.
At BIOLAP we have developed and proven our approach to implementing management information solutions. These provide an adequate, credible, and scalable reporting framework and capability. This allows management to accurately measure factors impacting margins and to develop sound strategies to improve profit levels.
Our clients have developed a greater depth of understanding of their business and have identified opportunities for improvements in profitability, capital management, cash-flow, and the value of their business.
Although most broking systems provide adequate processing, they often lack the capability to produce critical management information. At Biolap Solutions, we have developed a data mart solution for broking systems that allows the easy, quick and accurate analysis of premiums and associated revenue flows within the insurance ledgers. Whilst most broking systems split transactions between client, underwriter and third party ledgers, these balances are reconstituted by our Revenue Analysis solution.
Greater transparency is gained across the ledgers leading to more accurate understanding of gross commission rates, commissions ceded to clients or introducers of business and income retained by the business. All of these measures are compared against premium flows to insurers.
In contrast to many data warehousing approaches, our proven methodology is specifically designed to deliver results from the outset of the project, by implementing a scalable and flexible framework that can be continuously developed and improved to respond to an organization’s growing appetite for management information once the possibilities are fully understood.
Equipped with sound decision support systems, management of intermediaries have a number of potential strategies open to them to improve margins:
- Negotiate more advantageous commission rates with underwriters
- Negotiate more advantageous commission sharing agreements with business producers
- Use more appropriate business models for classes of business
- Improve effectiveness of placing process
- Improve processing efficiency.
BIOLAP provides experienced resources to assist in the development of appropriate business strategies. In addition, we can help to identify recurring problems and help to design improved processes to prevent their future reoccurrences.
Clients using our Revenue Analytics in conjunction with our margin improvement methodology have experienced sustainable improvements in their profitability over a 12 month period:
- Increased commission levels from insurers
- Increased retention of income
- Reduced costs due to re-engineering of processes.
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