Challenges from current market and regulatory demands require changes to the historic professional discipline-based model for organisational design. There is need for greater integration and the moving of processes and roles across traditional departments. Understanding the relationships between Finance, IT, Risk, Actuaries and subsidiaries is key to the organisational design and ensuring its success by identifying the barriers to change.
Insurance companies are increasingly exploring how to leverage offshore captives and outsource arrangements for finance and actuarial processes to achieve cost efficiencies and access to labour markets. Defining the sourcing strategy as part of the operating model is imperative within a finance transformation programme, as it is a key lever for optimising costs, organisational design and capabilities.
People changes during transformation require flexibility and leadership in a fast-changing environment. A finance transformation programme will require an innovative change management approach, to clearly understand and measure the impact of the transformation programme, as well as the means by which to engage all members of the organisation throughout the programme.
