Summary

Design of a new Target Operating Model to support the global administration of the Outwards Reinsurance for a major international insurer.

Challenge

The administration of Outwards Reinsurance had become fragmented within this insurer’s three administrative centres. The core systems had fallen into marginal use and the department was falling back on a spreadsheet system. Key staff were retiring, there was an increasing operational risk, increased regulatory demands and some high profile processing errors were encountered.

Approach

Stratiformis built a team to review the current situation and produce a problem statement that objectively defined the underlying issues. Having then reviewed the as-is operating model, the team then produced a new proposed transformational Target Operating Model.

Outcome

The proposed Operating Model was accepted in its entirety by the company’s Executive Board and moved into implementation. This proposal included:

• The splitting of the Outwards Team into a Placing Team and a Ceded Operations team
• The creation of a new core, Centralised Operations Unit to support all global business
• The appointment of a new Head of Ceded Operations and the creation of a number of new roles required to robustly support the administration of outwards contracts
• The implementation of new business processes and redefinition of key interfaces to Finance, Actuarial, Placing and other business units
• The reimplementation of the core administration system and a reduction in the reliance on spreadsheets.