Financial Transformation: Navigating Complexity at an Insurance Giant

 

Problem. Streamlining Operations: Addressing Complexity at an Insurance Company.

 

With over 330 branches and a workforce of 2,800, Rossiya Insurance held the 11th national position in premium volume. Managing this extensive branch network, spread across multiple time zones, posed challenges for real-time financial oversight. The branches' significant financial autonomy, including local bank account management by branch directors, further amplified the complexity. To enhance financial control, the company's shareholders prioritized the development of a state-of-the-art online financial management system for their nationwide offices.

 

Action. Operational Transformation: Enhancing Efficiency at an Insurance Company.

 

Overview: The project aimed to enhance operational efficiency at our insurance company. Key actions included managing 450 current accounts, implementing budget controls, and modernizing IT systems.

 

Established Financial Control System:

• Established a meticulous financial control system for 450 current accounts.

• Categorized accounts into income and expense segments.

• Seamlessly integrated this structure with branch budgeting.

 

Modernized IT System:

• Aligned 450 accounts with the budget system covering 330 branches.

• Modernized the IT system and established budgetary limits through collaboration with the settlement bank.

• Implemented budgetary limits on branch accounts in line with approved budgets.

• Collaborated with the settlement bank to create automated budgetary and settlement controls.

 

Implemented Treasury Settlement Mode:

• Partnered with the largest bank in the country.

• Established a dedicated working group to create a Treasury settlement structure.

• Implemented "Treasury Settlement Mode" with spending limits for branches aligned with approved budgets.

 

Designed Comprehensive Budget System:

• Designed a fully allocated and automated budget system across all company levels.

 

Result: Transformative Success at Insurance Company.

 

Market Leadership:

• Created a standard product in partnership with the country's largest bank, capturing an impressive 27% market share of the national banking system.

• Extended the product offering to all corporate clients.

 

Premium Growth and Efficiency:

• Experienced remarkable growth in insurance premium collections, achieving a 3X increase within three years, surpassing industry peers.

• Enhanced operational efficiency, with net earned premiums (excluding reinsurer's share) expanding 3X within two years.

• Improved controllability and readiness for future scaling and capitalization growth.

 

Financial Milestones:

• Achieved a remarkable 12X increase in capitalization in just four years.

• Tripled regional presence, expanding to 331 branches.