Individual Life: 2015 LIONS Benchmarking Taxonomy
Deloitte Global Benchmarking Center
Deloitte Consulting LLP
January 28, 2015
The LIONS taxonomy establishes a structured approach to enable relevant
comparisons for members
§ Deloitte’s Global Benchmarking Center is dedicated to helping clients assess their performance compared to their peers and
quantify opportunities for improvement. It is our structured approach and methodology that enables relevant comparison
development
§ At the heart of this methodology are our taxonomies
§ Our taxonomies depict the structure and organization of the benchmark and show the level at which data is collected and reported
for all clients. We collect all our benchmark data according to these standard comprehensive taxonomies to:
- Enable peer and cross-industry “apples to apples” comparisons regardless of a client’s organizational structure
- Enable both external peer group comparisons as well as internal organization comparisons (geography, business unit,
shared services)
§ The following pages show the taxonomy for the Life Insurance Operations (LIONS) Benchmark. A component of the LIONS
Benchmarking Prism
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
The standardized definitions in our LIONS benchmark taxonomy enable “apples to
apples” comparisons among member data regardless of their organizational structure
LIONS Taxonomy
Sales
Sales
¡ Sale of insurance
products
¡ Commissions
paid for product
sales
Technology
Operations
Marketing, Product,
Distribution
New
Business
Marketing
¡ Underwriting and
direct support
¡ Administer, design,
produce and
¡ Policy issue and
distribute
support
marketing material ¡ Underwriting
¡ Wholesalers
assistance with
product sales
¡ Prospectus
operations
¡ Support for sales
staff
¡ New product
development
requirements
Product
¡ In-force product
management
Distribution
¡ Distribution
channel
management
Customer
Service
Corporate
Overhead
In-force
Administration
¡ Administration
¡ Operate call
center
¡ Finance
¡ Process in-force
policy change
requests
¡ Pay claims and
make other
disbursement
payments
¡ In-force policy
conservation
Remittances
¡ Billing and
collection
¡ Producer
compensation
administration
¡ Premium
processing
¡ Producer licensing
and appointment
administration
¡ Production and
delivery of policy
statements
Policy Statements
¡ Advertising
– Actuarial risk
management
– Controls
– Financial
transaction
processing
– General
accounting/
financial reporting
– Tax and treasury
– Performance
management
¡ Human resource
administration &
communications
¡ Legal, compliance
and settlements
Information
Technology
¡ Supporting
infrastructure
¡ Application
maintenance
¡ Discretionary
investments
¡ Identify IT support
for specific
insurance
functions
¡ Application
development and
maintenance
¡ Controls and risk
management
¡ Infrastructure
technology
management
¡ IT Planning and
strategy
¡ Premium tax1
¡ Licensing and
appointment fees
1. Premium tax is collected but is excluded from corporate overhead calculations
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
Deloitte.
Global Benchmarking Center
Taxonomy: Life Insurance Operations Study Benchmark (LIONS)
The image below shows the function category and function levels. The subsequent pages show the process categories, processes, and sub-processes that define each of the functions.
The black text, in the taxonomy chart, shows the level at which data is collected and reported. The light grey text, in the taxonomy, chart shows the various processes that define the process categories
Function Category
Level 0
Function
Level 1
Sales
Sales
Marketing, Product & Distribution
Marketing
Product
Distribution
New Business
New Business
Customer Service
In-force Administration
Remittance
Policy Statements
Corporate Overhead
Administration
Advertising
Finance
Human Resources
Legal & Compliance
Premium Tax
Information Technology
Information Technology
Process Category
Level 2
Process
Level 3
Sub-Process
Level 4
Deloitte.
Global Benchmarking Center
Taxonomy: Life Insurance Operations Study Benchmark (LIONS)
The black text, in the taxonomy chart, shows the level at which data is collected and reported. The light grey text, in the taxonomy, chart shows the various processes that define the process categories
Function Category
Level 0
Process
Level 3
Process Category
Level 2
Function
Level 1
Sales
Sales
Commissions
Compensation Paid for to producers that varies based on sales
Reporting by Type of Commission
Reporting by Distribution Channel
Wholesalers
Assist in the sale of individual life insurance policies
Share in the variable compensation (commissions) for the sales.
Sales Office Support
Support producers in their efforts to sell new business
Marketing, Product & Distribution
Marketing
Marketing Strategy and Planning
Prospectus Operations
Document creation to inform on certain investment products
SEC Compliance
Post Sale/Presale reporting
Product
New Product Development
Idea development for new products
Manage Development
Plan Product Launch
Actuarial Modeling
In-force Product Management
Monitoring of product and portfolio risk
Actuarial Modeling
Distribution
Distribution Channel Management
Seek and Implement new distribution channels
Monitor performance
Producer Compensation Administration
Calculation of producer commissions and other compensation
Conflict resolution of producer compensation issues
Producer Licensing and Appointment Administration
Monitoring of licensing requirements
Assist producers fulfill licensing requirements
Licensing and Appointment Fees
Licensing payments
Appointment payments
Sub-Process
Level 4
Deloitte.
Global Benchmarking Center
Taxonomy: Life Insurance Operations Study Benchmark (LIONS)
The black text, in the taxonomy chart, shows the level at which data is collected and reported. The light grey text, in the taxonomy, chart shows the various processes that define the process categories
Function Category
Level 0
Process
Level 3
Process Category
Level 2
Function
Level 1
New Business
New Business
Underwriting and direct support
Evaluate life applications and assess risk
Determine of which reports are required and review
Process informals
Policy issue and support
Issue new policies
Process new issues
Underwriting Requirements
Order underwriting reports
Customer Service
In-force Administration
Call Center
Handling incoming calls
Monitoring call statistics
Claims
Policy Admin
Policy Change
Remittance
Billing and collection
Premium processing
Policy Statements
Production and delivery
Sub-Process
Level 4
Deloitte.
Global Benchmarking Center
Taxonomy: Life Insurance Operations Study Benchmark (LIONS)
The black text, in the taxonomy chart, shows the level at which data is collected and reported. The light grey text, in the taxonomy, chart shows the various processes that define the process categories
Function Category
Level 0
Process
Level 3
Process Category
Level 2
Function
Level 1
Corporate Overhead
Administration
Strategic Planning
Stock Options
Advertising
Company name/brand promotion
Finance
Actuarial Risk Management/Reporting
Updating of reserve studies and estimates
Actuarial determination of reserves and expected loss ratios
Cash flow testing
Capital analysis
Actuarial reporting
Controls
Controls/Sarbanes and Compliance Requirements
External Audit
Internal Audit
General Accounting/External Reporting
External Reporting
General Accounting
Statistical Reporting
Performance Management
Budgeting - Capital
Budgeting - Expense and Revenue
Business Financial Analysis
Financial Management Reporting
Forecasting
Function Management and Strategy
Tax and Treasury
Financial Risk Management
Tax - Income
Tax - Premium
Tax - Property
Tax - Sales and Use
Treasury
Transaction Processing
Accounts Payable
Cost Accounting
Deferred Acquisition Cost Accounting
Fixed Assets Accounting
Project Accounting
Reinsurance Accounting
Travel and Entertainment
Sub-Process
Level 4
Deloitte.
Global Benchmarking Center
Taxonomy: Life Insurance Operations Study Benchmark (LIONS)
The black text, in the taxonomy chart, shows the level at which data is collected and reported. The light grey text, in the taxonomy, chart shows the various processes that define the process categories
Function Category
Level 0
Process
Level 3
Process Category
Level 2
Function
Level 1
Sub-Process
Level 4
Corporate Overhead (cont.)
Human Resources
HR Operations
Total Rewards
Talent Management
HR Strategy and Program Design
Legal & Compliance
Legal
Legal Administration
Provide legal advice
Manage outside counsel
Legal Settlements
Represent and settle
Make settlement payments
Compliance
Handle corporate complaints, agent inquiries and claim appeals
Review advertising
Coordinate state examinations and market conduct exams
Premium Tax
State Tax Assessments
Deloitte.
Global Benchmarking Center
Taxonomy: Life Insurance Operations Study Benchmark (LIONS)
The black text, in the taxonomy chart, shows the level at which data is collected and reported. The light grey text, in the taxonomy, chart shows the various processes that define the process categories
Function Category
Level 0
Function
Level 1
Process
Level 3
Process Category
Level 2
Information Technology
Information Technology
Application Development and Maintenance
Application Maintenance
Enterprise Architecture
Application Development
Transition Management
Program and Project Management
Risk and Controls Management
IT Risk Management
IT Security
IT Controls
Disaster Recovery
IT Asset Management
IT Knowledge Management
IT Communications
Infrastructure Management
End User Support
Capacity Management
Data Center Operations
Identity and Access Management
Information Management
Infrastructure Change Management
IT Strategy and Planning
IT Innovation
IT Organization Model
IT Workforce Planning
IT Governance
IT Sourcing and Supplier Management
IT Performance Management
IT Portfolio Management
IT Strategy
IT Quality Management
IT Financial Management
Sub-Process
Level 4
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited