Insurance Expense Benchmarking

McLagan offers operational benchmarking services for insurers through our subsidiary, Ward Group, the leading provider of benchmarking and best practices research for the insurance industry. We help firms measure the operating performance of insurance companies as a whole, compared to separate business units and by country or region.

Deep Understanding of Insurance Industry

Ward Group is the premier source for in-depth apples-to-apples insurance industry benchmarking. Our accumulated data serves as the lifeblood of every project we undertake. We provide an unparalleled proprietary annual benchmarking process, giving us the ability to evaluate numerous operational metrics in key functional areas. We conduct detailed analyses of staff levels, revenue, expenses, and operations for the entire organization and provide granular benchmarks to help our clients measure the operating performance of their company compared to other insurance companies.

Firms Participate

Top 100 Carriers for Property-Casualty and Life Insurance Firms

Benchmarking Engagements
Since 1991

Headcount analyses provide in depth analysis of a firm’s business scale and footprint versus a set of customizable peers within determined markets of interest. In an ever-changing business environment, our clients achieve a competitive expense advantage to stay ahead of the curve.

Benchmarking for Core Enterprise Operations (CEO)

We analyze operational performance across the entire enterprise providing a big picture view of how your operations compared to other companies.  We provide expertise to:

  • Conduct detailed functional evaluation of expense structure against actual and projected performance
  • Identify additional cost reduction opportunities within company operations.
  • Assess the impact of projected staffing and expense reductions against revenue projections.
  • Provide an independent assessment of workload benchmarks and help establish targets to achieve top performance.
  • Create workforce planning tools to assist in the execution of these opportunities and to maintain efficiency
  • Work with leadership to agree on future business targets
  • Develop a roadmap to achieve efficiency gains that are sustainable

Property-Casualty Program

We analyze 55 functions for property-casualty firms across:

  • Acquisition and Marketing
  • Commercial Lines
  • Loss Adjustment
  • Personal Lines
  • Shared Services

Life, Health, Annuity and Retirement Program

We analyze 49 functions for life, health, annuity, and retirement insurers across:

  • Acquisition and Marketing
  • Underwriting, Claims, and Customers
  • Shared Services

Benchmarking for Information Technology

Ward Group provides a benchmarking program specifically for information technology to help companies uncover opportunities to improve efficiency. Our IT specific data and insights help leaders in the industry answer questions like:

  • Are our IT expenses too high?
  • What is the cost benefit for changing our IT systems?
  • Are we staffed appropriately to be cost effective and efficient?
  • Should we outsource any of our IT functions?
  • What is the return on investment for our new system implementations?

The Ward IT benchmarking program includes three levels of analysis for a holistic perspective of IT performance across the organization:

Level 1: Analysis of 19 functional areas within user support, networking services, applications, and operations.

Level 2: Analysis of business units across the organization supported by the IT function.

Level 3: Analysis of major systems platforms and practices used throughout the company.

Benchmarking for Claims Operations

Our benchmarking program for claims operations helps insurance companies define measurable objectives, and identify and capitalize on improvement opportunities.

We analyze 27 claims-specific functions and provide data and insights to help leaders in the industry answer questions like:

  • How do we define measurable objectives for claims output?
  • Are we staffed appropriately to be cost effective and efficient?
  • Should we outsource any of our claims functions?

Ward's 50

Since 1991, Ward Group has conducted the Ward's 50®  analysis. It is a financial analysis of the insurance industry based on publicly available data and conducted independently of the Ward Group annual benchmarking programs. Ward Group analyzes the financial performance of nearly 3,000 property-casualty insurance companies and nearly 700 life-health insurance companies domiciled in the United States and identifies the top performers in each segment.

Each of the top fifty companies is awarded the Ward's 50® Seal and their names are listed as the Ward's 50® Top Performers for the year. Each Ward's 50® company has passed all safety and consistency screens and achieved superior performance over the five years analyzed.

An important objective is to compare their performance as a group with the rest of the insurance industry. You can order customized reports of select Ward's 50® benchmark group comparisons for individual companies.

To learn more about our program, please click here.