STRATEGY CONSULTING GROUP

 
 
              SCG

HEALTHCARE & INSURANCE

 

SCG has worked on the full spectrum of strategic, organizational and performance improvement issues at leading healthcare companies. We work with our clients to identify how they can deliver better value for patients, in ways that are consistent with shifting government policies. While this challenge applies across all healthcare subsectors, we also help companies address the unique issues they face based on their position in the value chain:

  • Pharmaceuticals: Pharmaceutical manufacturers need to ensure their products contribute to favorable and demonstrable outcomes, and streamline costs in the face of increasing price pressure.
  • Medical Technology: Medical technology companies need to fuel cost-effective innovation and address the needs of a broader range of constituents.
  • Payer/Provider/Services: Providers must demonstrate continuous improvements in patient outcomes while taking on more responsibility to contain costs. Private payers need to reevaluate how to serve customer segments and employ new pricing and service models. Service and software providers must act as the levers by which the system delivers better clinical outcomes at a lower cost.

 

The current financial crisis and the responses of financial institutions—capital infusions, portfolio actions, and initial-cost takeouts—have been well documented. But the crisis has done more than destroy value. It has redefined what financial institutions must do to compete and win.

 

Unfortunately, the environment for financial institutions will continue to become more challenging. We will likely see slower economic growth, depressed property prices, shrinking global-trade volumes, and higher unemployment levels. Customers’ de-risking and deleveraging will further reduce demand for previously high-margin products and services. Governments and regulators will continue to play increasingly activist roles in the sector.
 
The industry will see reduced revenue and profit pools as the standard business model returns to being the customer-based model, with less-leveraged balance sheets, that universally characterized the banks of years past. At the same time, the race to build global titans appears to have been halted in its tracks. To succeed in this new environment, financial institutions need to answer some critical questions:
  • How is the structure of the financial services industry evolving? How are industry revenue and profit pools likely to change?

  • What new business models are emerging? What do they signify for the organization structures, operating models, and product and distribution strategies in each of our businesses?

  • How is this crisis changing customer behavior in terms of product preferences, risk tolerance, and the perception of financial institutions? How should we respond?

  • How do we better understand and manage risks in our businesses? What is the likely impact of new and emerging regulation?

  • How do we transform our cost structure to better align with reduced margin expectations?

 

Our practice works with leading financial institutions around the world to help them improve their competitive advantage in these challenging times. Through close and candid collaboration with our clients, SCG strives to find the most creative, cost-effective, and strategically sound long-term solutions.

 

We have a strong global network and “on-the-ground” experience in all major markets. We are well known for our long history of cutting-edge research and thought leadership—including our periodic reports on retail banking, payments, wealth management, asset management, corporate banking, investment banking, value creation, and risk management. We also bring our clients a wide range of expertise in areas such as strategy, organization, marketing and sales, corporate development, operations, and information technology.
 
 
Insurance industry may not be as badly impacted by the financial crisis, although the worst days of the global financial crisis appear to be behind us, the speed of recovery is likely to vary widely across industries and regions. Many insurers have weathered the storm in admirable shape, while others continue to struggle.  Most insurers, regardless of how they fared during the crisis, will be forced to confront far-reaching challenges going forward if they hope to return to the highest levels of performance. These are the key issues they face in a new global environment:
    • How to capture growth in a two-speed global economy
    • How to adapt business models to structural shifts in the industry (low-interest-rate environment, Solvency II, aging populations)
    • How to create competitive advantage through execution excellence in distribution, claims, pricing, and closed books
    • How to leverage global scale in a “multi-local” industry
    • How to build the capabilities necessary to win

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    By analyzing the dynamics of the insurance industry and foreseeing its future landscape, SCG’s Insurance practice creates solutions that ensure high value creation and further growth for clients. We also call upon our wealth of industry knowledge and experience, allowing us to tailor our solutions to each client’s specific needs:

     

    • Our expertise extends to every business line of the insurance industry and every link on the value chain across all regions.

    • We leverage a strong global platform to share best practices and trends via topic specialists and regional leaders.

    • Our local experts provide insight into specific, individual markets.

    • SGG’s Insurance practice features more than 150 experts on five continents, backed by a global knowledge team developed over many years.

     

    Asset Management

    • Asset Management Governance

    • Asset Liability Management

    • Integrated Risk Management

    • Investment Strategy

    • Third Party Asset Management

     

    Claims

    • Claims Segmentation

    • Processes & Organization

    • Network Management & Partnering

    • Customer Experience

     

    Marketing & Sales

    • Branding management

    • Customer insights and segmentation

    • Distribution mix and models

    • Sales force effectiveness

    • Pricing

     

    Reinsurance

    • Reinsurance for Primary Insurers

    • Optimization

    • Organization

    • IT and Processes

     

    Health

    • Care and provider management

    • Health Insurance Operations (risk assessment, contract & claims management)

    • Public private partnerships

    • Products and distribution channels, including corporate health

     

    Reinsurance

    • Reinsurance for Primary Insurers

    • Optimization

    • Organization

    • IT and Processes

     

    Non-Life

    • Retail & commercial lines

    • Industrial Insurance & Captives

    • Assitance/Additional Service Products

    • Target0-group-specific Products

    • Product management

     

    Life

    • Volume and growth

    • Profitability

    • Products

    • Regulation

     

    Corporate development/Risk/PMI

    • M&A

    • Risk Management

    • TSR Strategy & Value Based Management

    • Post Merger Integration

     

    IT

    • Strategy

    • Transformation

    • Sourcing

    • Organization
    • Performance

     

    Operations

    • Lean Insurance/Factory of the Future

    • Operating models

    • Performance management

    • Customer Service

    • Sourcing

     

    Organization/HR

    • Organization Models & Accountabilities/Governance
    • Change Management/Engaging for results
    • Culture & Leadership
    • HR Strategy/Talent Advantage/Workforce planning
    • HR operations

     

    Trends/market strategies

    • Growth
    • Landscapes
    • Trends
    • Strategy