Challenge
This leading ANZ private health insurer (PHI) had a strong track record of continuous improvement but was seeking additional efficiency opportunities to improve competitiveness and support its strategic objectives.
Improving its Management Expense Ratio (MER) was a key strategic priority. Members of the Cinc team were engaged to conduct an enterprise-wide cost diagnostic, with a particular focus on operational expenditure and performance improvement opportunities.
Approach
An 8-week review focused on:
Operating Model
Organisational design review, including spans and layers analysis, role clarity and structural improvement opportunities.
Operational Performance
Assessment of contact centre and claims operations, including workforce planning and scheduling, performance management, productivity improvement, failure demand analysis and cost-to-serve benchmarking.
Third-Party Spend
Review of procurement practices, supplier rationalisation opportunities, software expenditure, category management and external spend visibility.
Claims Leakage
Analysis of claims performance across categories, claim types and member segments, identifying leakage opportunities and improving ongoing reporting and monitoring.
Project Delivery
Review of project governance, resource allocation, delivery sequencing and portfolio management to improve project effectiveness and value realisation.
Team members involved: Peter Campbell, Michael Love and Steven Tan.
NB This engagement was delivered prior to the establishment of Cinc. The experience and results described reflect work personally delivered by the team members identified above.