Title_insurance

Gauge Benchmarking

GAUGE is a revenue, cost and headcount benchmarking product which provides firms with a unique opportunity to compare their organization against their closest peers at a level that provides actionable results. The data is taken from the general ledger and mapped by McLagan into a standardized industry structure allowing a true apples-to-apples comparison across firms.

GAUGE cannot be replicated internally and provides management with clear and objective information to aid decision-making and effect change. GAUGE is already used by many of the world’s leading investment banks and the results often form an integral part of their planning and budget processes. This successful track record of delivering significant value to many of the world’s leading financial institutions is now being offered to leading US P&C Insurers. 

For insurers, the GAUGE results would enhance existing ERM strategy and, for the first time, enable a granular “deep dive” into expenses below the Expense Ratio.  This enables your firm to be more strategic in allocating capital and managing spend at a time when the top line is flat and the bottom line is under increasing focus and pressure.

Key performance indicators and statistics measured include:

  • Productivity Analysis (centered around underwriting and revenue producing areas)
  • Scaling (detailed look at expenses and cost of support relative to underwriting revenues and heads supported)
  • Expenses measured by LOB, geography and expense type (compensation and non-compensation) - measured on an absolute and per capita basis
  • Headcount levels and staffing mix including alternative sourcing and impact of location strategy (chosen or “accidental”)
  • Firm and benchmark trends

GAUGE approach:

  • Sourced directly from company general ledger and reconciled to published financials
  • Mapped by McLagan to functions  
  • Sign-off by client before running Benchmarks
  • Tailored reporting for individual reporting requirements 
  • Updates on key areas

Output and reporting:

  • Customized output to meet client needs, focusing on areas of importance to them
  • Report for each detailed business unit and location
  • Headcount & Grade levels
  • Cost by detailed line item
  • Key trends for your firm and in the benchmark with McLagan providing further contextual color 
  • Metrics to take account of scale and complexity (important to take account of differences in size in product mix)  
  • Conclusions, call-outs to key data points and commentary with McLagan available to present the findings

GAUGE reports may be used to:

  • Identify and quantify variances
  • Objective leverage to effect change
  • Review external structural and organizational differences
  • Input to decision making process  

 

Early in 2007, the Counsel of Insurance Agents & Brokers enlisted McLagan to develop and conduct a comprehensive compensation survey for its membership. With over seventy-five insurance brokers participating (including 8 of the top 10), the survey will:

  • Provide information about base salary, cash compensation and total compensation levels.

  • Present results by product line (e.g., commercial lines, employee benefits, personal lines), company size, ownership structure, etc.

  • For Producers, provide insight about pay and production levels.

  • Cover a full range of positions within the following functions: Top Management, Producer/Sales, Account Executives, Customer Service, Loss Control, Claims, Legal & Compliance, Licensing Administration, Marketing, Information Technology, Legal, Finance & Accounting, Human Resources, General Services, Secretarial Services.


1154028862132257001
1154028863850072305
. . . . . . . . . . . . . . . . . .