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Insurance 360°

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?



The next frontier for sustainable growth: Capturing the cost advantage of direct insurance

– Direct insurers in Western Europe are leaner, simpler, and faster than traditional multichannel insurers. Still, they must take... action to fulfill their potential.

Evolving insurance cost structures

– How incumbents can adapt and save to remain competitive in the digital age.

Taking courageous action on cost in life insurance

– Cost pressure in the life insurance industry is becoming ever more dire. Transparency brought about by regulations, the rise of... digital platforms coupled with the low interest rate environment are jeopardizing the life insurance industry’s value proposition. At current rates, most insurers are unable to pay back even the premiums that have been paid in and are simply bleeding money. This paper shows five actions Life insurers can take to sustainably reduce costs and discusses more radical options to reshape the Life Insurance Business.

From transparency to insights: McKinsey’s insurance cost benchmarking 2016

– The 11th edition of our Insurance 360° study confirmed that cost is a key competitive factor for players in Europe’s... insurance industry. This report examines two critical questions: How has the sector’s cost situation developed? And what insights can be derived for individual insurers aiming to reduce cost ratios?