SBS partnered with a Life Insurance client to administer a 230,000 member group-life policy. A complex paper-driven process combined with a rapidly growing member base had resulted in large “un-reconciled” member contributions, which SBS reduced by 85% by combining IT solutions with process discipline.
Country: India
Industry: Financial Services
Situation
The client is a Life Insurance company that is a joint venture between one of France’s top five life insurance companies and India’s largest bank (with has over 9000 branches).
One of the client’s key products was a large “group-life” policy covering 230,000 members and growing rapidly.
Challenge
- The client had insufficient process controls to handle their largest group-life policy (for example, there was no standard system to track the frequent movement of members between sub-groups and branches)
- The process involved handling high volume paper transactions (processing on average 7,000 premium documents in a month, each of which pertained to multiple members)
- Quality of input and variations in data provided at by branches aggravated the problem
- No standard formats available
- Process back-log had resulted in Rs. 75 million of premium received being ‘unallocated’ to individual members
SBS Solution
- On-site systems study identified over 20 improvements in operations and system process even before migration
- Deployed a multi-location team that provided a tailored “end to end solution” for premium receipt that encompassed the following
- Ability to handle paper from partners documents “as is” (including documents from banks, and member premium statements)
- Ability to handle receipt of cheques and demand drafts to premium
- Dispatch of certificate of insurance to new members
- Regular process MIS and updates
- SBS developed and designed a customized “wrap around” IT solution that worked with the clients’ existing software and added better process controls and validations
- Worked with the client in developing a web-enabled application that helped avoid any additional accumulation of unallocated premium
Impact
- Used a team of 25 trained executives to resolve pending issues and reduce unallocated premium amount by over 85% within 5 months
- Significant cost saving achieved when compared to “year 0”
- Successfully managed large demand spikes (200% of normal volume) for 3 months, without compromising client service
- Established well defined streamlined processes which enabled the client to decentralize the process within its branches in less then 2 years.
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