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      How an international insurance group has achieved significant efficiency, quality and economies of scale by centralising key services. The client faced the challenge of managing central functions such as finance, HR and procurement within a decentralised organisation that had evolved organically, characterised by heterogeneous processes, systems and levels of maturity. Limited scalability and a lack of transparency made it difficult to realise efficiency potential and ensure consistent management across countries and units. 

      Together with the client, KPMG laid the foundations for a globally standardised service organisation. The finance function served as a pilot, for which a standardised operating model with clear processes, roles and integrated governance was developed. Standardisation, automation and targeted integration into day-to-day operations resulted in robust decision-making frameworks and sustainable improvements in day-to-day operations. The result: a scalable foundation for the further expansion of a global GBS organisation with significant cost and FTE savings potential.

      Sector
      Insurance

      Project objective
      Establishment of central service structures

      Performance that counts. Value that lasts.

      ~10 %

      Cost savings (approx. €600 million) identified

      ~5 %

      FTE cost-saving potential identified through standardisation and automation

      1

      Blueprint for a scalable operating model for GBS functions

      The path to customer transformation

      Our client, an international insurance company, had previously provided central support functions such as Finance, HR and Procurement largely on a decentralised basis across its operational units and country organisations. Differing national requirements, historically evolved structures, and heterogeneous processes and IT landscapes had resulted in limited scalability and restricted transparency. 

      In order to realise efficiency gains and make better use of technology investments, centralised services were to be gradually consolidated. 

      The finance function was deliberately chosen as the pilot project – characterised by high complexity, varying levels of maturity, limited standardisation and stringent regulatory requirements within the insurance sector.

      Our contribution: Standardised structures for a global service organisation

      We supported the company in this pilot project. Through close collaboration with other KPMG member firms, our in-depth knowledge of the company’s organisational structures, and tried-and-tested GBS‑vision statements and implementation approaches, we were able to lay the foundations for a successful global roll-out. 

      The project approach was based on a clearly structured methodology: Firstly, a new operating model for the finance function was developed and implemented, based on a sustainable and value-oriented vision. This forms the functional and organisational framework for a centrally managed service organisation.

      Key elements of the new service model

      The core tasks included the definition of a standardised service portfolio, consistent process models with clear responsibilities, binding work instructions and appropriate management and control mechanisms. At the same time, an integrated management and reporting model was established to ensure transparency, performance management and risk management. Another key focus was on training staff to embed the new model permanently into day-to-day operations. In addition, an AI-based automation solution was identified and implemented, making routine processes significantly faster and more stable.

      In a subsequent business case phase, the approach was extended to the entire service organisation. A qualitative and quantitative assessment revealed the potential inherent in a uniform, global structure and the contribution it can make to efficiency, quality and manageability.

      The project enabled a clear strategic and operational reorientation of shared services. A standardised service and process model, uniform governance and control mechanisms, as well as clearly defined roles and responsibilities, were successfully implemented and embedded within the organisation for the finance function. For the first time, this function now has a transparent, scalable operating model to serve as a blueprint for further GBS functions.

      Demonstrable efficiency gains and improved manageability

      The business case developed for the entire GBS organisation demonstrates significant potential for value creation: Establishing an independent global GBS organisation will reduce costs by around 10 per cent (approx. 600 million euros). Standardisation and targeted automation would also enable FTE savings of around 5%. At the same time, transparency and governance are enhanced, whilst KPI-based management enables more informed decisions.

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      With this project, the client has taken a decisive step towards a globally integrated GBS organisation. We are proud to have significantly accelerated this transformation through our experience, our industry expertise and a tried-and-tested vision – thereby making potential savings in the mid three-digit million range both visible and achievable.
      Jan Richter

      Partner, Performance & Strategy, Enterprise Performance

      KPMG AG Wirtschaftsprüfungsgesellschaft

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      Jan Richter
      Jan Richter

      Partner, Performance & Strategy, Enterprise Performance

      KPMG AG Wirtschaftsprüfungsgesellschaft

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