The calamitous events of 2020 have shown that insurance companies must evolve beyond customary long-term planning in order to stay competitive. The ecosystem in which individual insurers operate is changing too rapidly; impacted by traditional and emerging macro forces that are increasing the severity and uncertainty of outcomes.

What is Dynamic Planning?

Dynamic Planning (DP) represents a paradigm shift from traditional business planning. DP is an AI-assisted planning and decision support framework controlled through an easy-to-use dashboard that enables users to:

  • Enter business objectives and plans
  • Leverage Public Cloud Services, and gather risk-based, demographic and other data from data providers
  • Perform and rank forward-looking "what if" scenario analyses comparing various outcomes in rank order
  • Perform DP at different frequencies and time horizons
  • Assess the impact of DP scenarios on financial performance
  • Modify objectives and plans as needed

Implementing DP

  • FTI Consulting's Global Insurance Services practice can deliver DP as a service through collaboration with clients
  • Perform a high-level review to confirm that business objectives and plans are aligned, and that operational performance metrics are in place
  • Determine what intelligence data is available and required
  • Develop "what if" scenario models based on plans and intelligence on hand and retrieved
  • Execute DP and discuss any adjustments required to the outcome options provided by DP scenarios
  • Review operational performance outcomes with client

Benefits of DP

DP is designed to provide insurers with the intelligence required to reduce uncertainty and make timely informed decisions with confidence. Use of DP enables insurers to understand the best outcomes available and make choices that improve performance on key metrics that support strategic objectives and plans.

DP is applicable to a business financial and operational functions across the enterprise, such as budgeting, underwriting, and claims. This enables staff to assume different and broader roles more effectively, thus reducing costs and improving overall performance. Once DP is fully integrated into the overall planning and decision making process, it can help insurers outperform competitors in similar markets.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.