Product Profitability

Times are changing in the insurance industry causing increasing challenges in achieving product profitability. Global trends—globalization, natural disasters, terrorism, regulation—are starting to reshape the marketplace and affect the traditional ability of insurers to forecast the future in terms of product line and regional profits. Insurance executives are struggling to understand the current state of the business, as their data comes from multiple, disconnected sources and spreadsheet-based planning is an uncoordinated, inefficient process. In this atmosphere of change, insurance companies need to find a simple, efficient way to understand market trends, analyze customer data, and plan initiatives for profitability at the business segment, product line, product, and brand levels. For confidence in the future of the business, leading insurers worldwide depend on Cognos.

Cognos Develops Insurance Product Profitability Models

Cognos is a recognized leader in delivering performance management solutions to the insurance industry. Over 1,000 financial services institutions worldwide use Cognos, including four of the top five global insurance companies. Cognos has the products, techniques, methodologies, and expertise to develop blueprint models specifically designed to help insurers to optimize business segment and product profitability. And of course, Cognos makes achieving product profitability practical, easy to manage, and high in ROI—the standard benefits in all Cognos products.

Cognos Brings Confidence to Planning for Product Profitability

Based on insurance industry best practices, Cognos has a blueprint to enable business analysts, product managers, and finance executives to plan effective initiatives that boost business segment and product profits. The first step in evaluating changing market conditions is to consolidate and streamline industry and customer data. Once the data is organized and accessible, the Cognos industry-validated forecast and profitability models are used to create segment-level rolling income statements and balance sheets based on multiple 'what-if' scenarios. Forecasts that encompass insurance premium revenues, expenses, and claims provide analysts with the comprehensive insight they need to advance decision-making and profits at every level of the business segment and product line hierarchy. With Cognos, the path to increased product profitability is clear in the evolving and risk-based insurance industry.

Learn more about Cognos models and blueprints for insurance product profitability here.