Operational Challenges Affecting Met life
Operational Challenges Affecting Met life
MetLife is a global company that is majorly involved in provision of insurance services, retirement and savings products (Peanuts, 2013). There are two principal sectors in the insurance industry that include life and health (L/H) and property and casualty (P/C) which account for a major market share (FIO, 2013). The industry is facing significant macro-economic, demographic and regulatory challenges to business models and operations precipitated by the economic situation (high inflation rates) and the competitive business landscape at present (Ernst and Young, 2014). The company’s competitors include American Equity Investment Life Holding Company (AEL), American National Insurance Company (ANAT), China Life Insurance Company Ltd (LFC), FBL Financial Group Inc.
To address these operational challenges at MetLife a number of efforts have been undertaken to help improve on the efficiency when conducting business and they include the following:
- Underwriting and pricing effectiveness
As a way to improve pricing and risk selection in the business we have leveraged data to embrace more sophisticated segmentation, which is highly dependent on adoption of enhanced analytical and modeling techniques (Ernst and Young, 2014). An example is a belief that the insurance industry will start to focus on modeling contingent business interruption after accruing the significant losses from natural catastrophes (PWC, 2013).
- Product development and delivery (supply)
At MetLife new product designs and changes to the supply architecture have been key points to the innovation and fulfillment across the enterprise and have been enjoined into business processes and technology solutions (PWC, 2013).
In the efforts to mitigate the challenges outlined above, favorable results have been experienced in various channels of operations in our organization. There has been change in the distribution platforms for the insurance product carriers with a long term view which aligns with the market’s changing expectations (PWC, 2013). Capabilities addition through technology and process transformation has been experienced which has improved the effectiveness of the business architecture through billing and claims management.
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