friday,june27th 900am-jason richardkeynote
TRANSCRIPT
Managing a Global Claims Team Jason Richards, Swiss Re
ACE, Washington DC, June 27, 2014
1. Clients 2. Operational Excellence and KPI's 3. Knowledge sharing 4. Risks and trends 5. Talent and Culture
Five things I think about every day …
Focusing on our clients
• Ease of doing business with Swiss Re
• Clear point of contact for Claims and Premiums
• Regular data-based interactions
• Bringing the entire firm to the client
• Net Promoter Score (NPS)
• Benchmarking data and analysis
• Overviews of legal trends and market developments
• Portfolio Reviews
• Run–off solutions
Engagement
Services
Knowledge sharing • Webinars, publications, white papers
• Strategic Initiatives, e.g. eStrategy
• Client Conferences
• Client Forums
Clients
When 1+1 = 3
Because we're
"smarter together"
Tools for measuring client service
Net Promoter Score
Clients
The Portfolio
$16 bn accounted premiums annually
$11 bn claims paid annually
$50 bn gross inwards reserves
$6 bn reinsurance recoveries
Portfolio
$0.2bn operating cost annually
$0.2bn loss adjustment expense annually Investment
Focus is on value generation from the portfolio
Operational Excellence
Key Performance Indicators - multiple core
productivity metrics and reviews
• Data cockpit delivers more than 20 KPIs with almost real-time feed
• Productivity metrics, claim activity metrics, premium metrics
• Clear segmentation approach
Operational Excellence
Monitor, measure, and track the business
• Where do we add most value?
• What expectations do we have of stakeholders/clients?
• Where do we want to be in 3 years?
• How do we enhance the value generation?
Strategic Reviews by Department and Unit
• Are the right people handling the right tasks?
• What trends do we see in the data? How will we react?
• Where do we spend most time?
Strategic -- FUTURE
• Number/Value of Open Claims • Number/Value of Transactions • Closing Rate • Client Visits • Operating Costs • Loss Adjustment Expenses
Quarterly Operating Reviews by Department
• Turn-around-Time
• Client Interactions
• Escalations/Referrals
• Largest Movements
• Disputes/Legal Proceedings
• Leakage
Tactical -- NOW
Operational Excellence
Provide Solutions, Service and Value
…while focusing on Client needs and expectations and supporting the skills
development of our people
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• Focused on Automation of work
Segmentation through analysis
• Differentiated Roles, Differentiated Know-How, Resources aligned with Roles
• Location strategy
Governance
• Executing/Maintaining/Updating controls and guidelines
• Identification and anticipation of Operational Risks and mitigation plans
Tact
ical
Systems
• System availability and enhancements
• Landscape simplification
Simplification
• Identification of opportunities and benefits… Embed in DNA
Reporting
• manage Key performance Indicators
• manage volume of work and productivity
• understand trending of business for feedback loop
Operational Excellence
Globalization – leveraging a global workforce
Kansas City
London Zurich
Bangalore
Mexico City
Ft. Wayne
Sydney
Armonk, NY
Bratislava
Rome
Low Cost
High Cost
Delhi
Review of footprint locations
Focused on Role, Average Salary, Average Length of service and Value Creation.
Analysis revealed:
A talented global workforce (no surprise!)
Value Creation was heavily correlated to higher cost locations (where the know-how is).
There are High and Low cost locations - some locations were not quite where we thought they would be!
Footprint strategy developed
No large scale strategic shifts needed – a good balance in the workforce was noted.
Be smart: Reduce and consolidate as positions come open, challenge all backfills into higher cost places.
Preserve our franchise knowledge and expertise in any actions or movement.
Impact of strategy
Lowered costs by backfilling appropriate roles in low cost locations.
Quality and Value Creation continued to be exceptional because "know-how" was leveraged and maintained.
**some smaller SR locations not shown above
Operational Excellence
Post Cat Event Assessment
Initial Triage Top-down modeling Bottom Up Review PECAT Committee
Review
Post Event Catastrophe Assessment Team (PECAT) Process
Start of process
Nat Cat Models Output Claims Notifications Press Industry Publications SR Internal Experts Client Feedback
Multiple loss scenarios are being prepared
End of process
Investor Relations / Media Relations
Prepare ad-hoc announcement Disclosure Committee
Meeting Loss Estimate is potentially
share price relevant
Disclosure Committee
Ad-hoc announcement or part of regular quarter-end publication
Operational Excellence
"If only HP knew what HP knows, we would be
three times more productive." -- Lew Platt, Former CEO Hewlett Packard
Claims culture must emphasize sharing as a necessity
Portfolio deep dives
Feedback loop on individual cases
Claims expert networks
Knowledge Sharing
Five networks in place since 2010
Forum for sharing knowledge and experience internally/externally with clients
Through a global view we can anticipate claim trends, detect systematic
issues, and provide solutions
Assist in risk prevention and risk management
Establish loss adjustment frameworks and expert network
Leadership Experience Expertise
Claims Expert Networks
Knowledge Sharing
MEDICAL MALPRACTICE PRODUCT LIABILITY
NATURAL CATASTROPHE MARINE
ENGINEERING
Claims Expert Networks
Knowledge Sharing
Key Risks Risk Tolerance Heat Map
Risks and Trends
Trends: claims topics on our radar
16 16
Flood Claims Development
Beyond Exposure Models: Iterative Learning Wide Area Damage in
Business Interruption Claims
Increase in Casualty Claims in Property Events
Aggregation Challenges in the Industry
Risks and Trends
Cyber Liability
Be innovative in how we acquire and nurture our talent
• Understand the changing needs of upcoming
generations and adapt accordingly
• Make sure we leverage the full workforce… globally
• Educate potential talent about our
industry/opportunities as early as possible
• Refine selection methods to assure we're getting the
best talent
• Provide opportunities for varied, flexible career growth
Talent and Culture
Tactical and Strategic Approach
A business imperative
• Integral dimension of our long term vision and aspirations
• Embedded in annual business and individual objectives
• Regular management team dialogue and individual interaction
• Quarterly team and talent metrics
Aligned with future organisational needs
• Rolling "3-year view" of demand: role types, locations, skills
• Collaboration across Swiss Re functions to further optimise e.g. succession planning
• Requires extensive dialogue and new skills for some senior managers – strategic talent management
Talent and Culture
Opportunity to Succeed
Involving our entire workforce
• Potential of all employees is assessed and discussed regularly
• Additional management team focus afforded to employees regarded as vertical and lateral
• Total focus on skill building – to improve quality of discussion, alignment to demand, and proposed action
Optimised with a range of resources
• Virtual Career Centre – Claims competency model
• Leadership development for some; technical and interpersonal for all
• Project work, assignments, and on-the-job learning
• Internal marketing to support cross functional movement
Talent and Culture
Some focus areas
Workforce flexibility
Diversity and inclusion
Feedback and development plans
Job rotations
Acquisition of new talent
Talent and Culture
"Culture eats strategy for breakfast." -- Peter Drucker, Austrian-born American management consultant, author
Culture is the "personality of the organization"
• An accumulation of a company's values, its vision, beliefs,
aspirations, and employees behaviours that guide decisions and
how we do things
The case for culture: No matter how brilliant the strategy
is, it must be supported by the organization's culture
Culture is not static
• Culture will always need refining. As a leader, I must lead by
example
Talent and Culture
Questions?
Swiss Re