Periodic Table of Insurance Capabilities

nemanjko Mar 05, 2016 Insurance


If we are looking at the very end of large global insurance companies, we can see that they are covering three segments:

1. retail (focusing on end customers with products covering property damage, car, motor, theft, travel, health, life, credit, wedding and many more types of every day risks)

2. commercial (focusing on companies that need insurance products such as general and professional liability, property and casualty, workers compensation, directors & officers, natural catastrophe and many more)

3. corporate (focusing on special industry offerings or non-traditional products such as structured solutions, insurance-linked securities, reinsurance of corporate captives, agriculture, aviation & space, energy, engineering & construction, technology, media and many more)

Even within these segments, insurance value chains differ, underwriting practices are often company specific and many areas of insurance capabilities are often purchased from other more specialized companies.

The Periodic Table Of Insurance Capabilities shows only core capabilities that are often seen in a number of mid- to large-size insurance companies. But it's important to say that these are only high level capabilities. All of those can be further broken down into level 1,2,3 or even 4 capabilities that are focusing on specifics of that capability. For example, Underwriting is quite a broad capability that can be further broken down to Level 1 capabilities such as: Information Gathering & Risk Selection, Risk Assessment, Account Structure & Coverage, Rating, Pricing, Quote & Negotiation, Risk Inspection, Policy Confirmation and Policy Issuance. If we look at Pricing for example, we can further identify Level 2 capabilities of Pricing such as: Technical Price Calculation, Service & Expense Fee Management, Taxes & Charges and Target Premium Calculation.

As you can see, trying to place all of these capabilities on a periodic table would generate one very unreadable and complex page. Therefore we decided to stay only on those core capabilities. Some might argue that there are other core capabilities such as: Proposition Management, Marketing, Distribution Management, Procurement, Legal, HR, Audit, Financial Control etc. This is true, but again we had to select only the most insurance-relevant ones in order to make it readable enough.

Now, coming to vendors and tools. This is also a tricky area. There are many more vendors out there for each of those capabilities. In creating the periodic table, we referred to those vendors and tools that we had experience with during our engagement with insurance companies as well as based on Gartner/Celent/Forrester reports. We are aware of existence of other vendors and their tools, but hopefully we managed to cover the most mature ones.

Hope you'll find the periodic table useful. Feel free to leave your comment under it.

Enjoy!

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