This benchmarking tool provides a comprehensive quantitative overview of a participant’s unit costs relative to peers.
It is based on high-quality internal data from participants and covers the entire value chain (e.g., policy issuance, claims management, marketing) and all cost types in all lines of business (e.g., life insurance, property-casualty, health). Insurance 360° uses a standard taxonomy to compare like-to-like across different markets and reporting structures, and delivers detailed insights into products, value-chain steps, and channels.
Participants in the Insurance 360° benchmark can also receive a root-cause analysis and targeted improvement levers. Processing times are short, with quick results, and there are more than 40 annual updates or new participants every year.
McKinsey’s Insurance 360° supports performance management efforts by addressing the following topics and related questions:
Creating cost transparency
- What is the cost structure along the value chain?
- How does the cost structure reflect business priorities?
Comparison of the participants own performance with accurately tailored peer groups
- Where does the participant stand in terms of cost levels throughout the value chain?
- Where are there performance gaps compared to cost leaders?
- What are the structural and operational root causes of these gaps?
Setting aspiration levels
- Where are the improvement opportunities in work procedures?
- What should cost aspirations be for the coming years?
Tracking improvements
- How successful are performance improvement efforts?
- How is the company’s position evolving in relation to the peer group?
Gaining valuable industry insights
- What factors distinguish top performers in the peer group?
- What are the characteristics of insurers with low cost levels?
