Understand P&C transactions to add one opportunity to the business sales pipeline
Moving from 'Learning' to solving a 'Real Business Issue'
Focus on solving a business issue
Learning returns the highest benefit when it is properly applied to solving real business problems. We recommend the line manager and the employee agree on measurable goals that will address known business issues.
The employee might then need to attend a development program such as this workshop. The objective is not just to attend a workshop, but rather to increase the employee’s business and financial acumen, and as a direct result of this development program, identify and help achieve specific, measurable, value-creating performance goals. To illustrate moving from learning-related goals to performance-related goals, we have prepared the following suggestions, which of course should be modified to meet the specific needs of the line manager and employee.
- Issue needs to be solved asap
- Employee is unclear how to do that
- Definition of KPIs to solve the issue
- Training will be recommended to help solve the issue
- Maybe a workshop
- Maybe on-line
- Employee addresses the issue with the newly acquainted knowledge
- Employee shares how it was possible to meet the KPIs
- Issue is solved
Value creating performance
Value-Creating Goal
Thanks to your strong P&C transaction knowledge, once the client’s needs have been identified and after discussion with the BD, co-develop with a colleagues of your XFT one new business opportunity, discuss it with your XFT leader and add it to the sales pipeline.
Suggested application tasks in order to meet the above-mentioned goal
After assessing the reasons why a client would enter into a P&C structured solution, present your findings to a junior team member. Secondly, consider the different types of underlying risks Swiss Re may be offered to take on with P&C transactions and assess what you think would be the most to least favorable classes – present your findings to Business Development (BD). Finally, think about a client’s portfolio, in order to answer the question, which clients might be interested in potentially discussing P&C structured solutions, and why? Discuss your findings with your XFT leader.
Summary
Addressing business issues - in a context of learning - promises to produce impressive ROIs.
When we consider all the benefits and costs, this type of training/development investment creates significant value and provides impressive quantifiable returns, both for the employee and for Swiss Re. Therefore, this approach moves us far beyond "just learning something"; it focuses us on the positive business outcomes by quantifying the expected costs and resulting value creation.Our Thoughts – the Return on Investment (ROI) Calculation
This activity promises a strong ROI of 588%
The sections below reveal our calculation.
Select each thought (+) to learn more about it.
Quantifiable value: Assume that usually each transaction is minimum $1M CMR. We have maybe 100+ opportunities.
We assume that the contribution to each new opportunity could be 1% with this activity, very conservatively calculated. The value therefore can be calculated this way: US$1M x 1%, which equates to US$10,000 in benefit.
Assume the cost of participating in the half-day training is US$300 which is the Swiss Re average cost.
Also assume the opportunity cost for being away from the desk for half a day is US$700. Further assume half a day of work is required to apply the findings and to achieve the above-mentioned performance goal, which adds an additional US$700 opportunity cost for not being productive.
The ROI in this case equates to a high 588% (US$10,000/US$1,700).
Don’t forget this ROI calculation is not considering the above-mentioned non-quantifiable value.
Select each light blue number to discover more.
Prepare online.
Who is this for?
Priority on client facing functions, Products Hub and other enabling functions.
Completing the training options will raise the competency level to "basic". Completing the "20%" and "70%" actions will raise the competency level from "basic" to approaching "proficient".
"To be regarded as a person in your area who is able to explain what P&C transactions are, the key elements of P&C transactions and the process to crate the P&C transactions."
Avoid: Attend workshop xyz
What are the requirements?
Good understanding of L&H reinsurance solutions. Knowledge about basic finance concepts are also a prerequisite to attend.
Learning from others. Exchange. Discuss.
Recommended social learning activities
- Reach out to PCSS to develop a deeper understanding of the transaction structures and the relevance to your clients
- The structuring community is even bigger than you think. There are over 18 Designated Structurers that structure and execute transactional business. Reach out to them and get to know them
- Where applicable: consider a rotation into PCSS teams
- Read some of the pitch documents that Swiss Re colleagues have delivered to clients and note the innovations that have been developed
- Schedule a few lunches with a knowledgeable colleague (perhaps those having a sales role?) and use this as an opportunity to discuss related topics and to deepen your understanding
Create value by applying the findings so far. Implement what you have learned. Recommended on-the-job assignments:
- Examine several recent P&C transactions and determine the key factors shaping the clients needs and Swiss Re’s response
- Evaluate the financial considerations that have shaped recent P&C transactions
- Develop a report on ways in which the macroeconomic environment is changing P&C. Note the role of inflation, exchange rates, and changing construction and building codes in various countries
- Prepare an analysis of how climate change may affect various aspects of the P&C business
- Raise your game even further and prepare for the EQS or ELPT challenge session. This will allow you to learn about a interesting structure and present to the C-suite. What better way to learn than by doing
