health insurance

Developing multiple pathways and identifying over £16m cost savings at a major health insurer

The issue

  • Pressure to increase efficiency in their claims due to rising medical costs
  • Large variation in costs between suppliers and across the UK
  • Lack of structured routing for members to effective treatments and cost efficient providers across hospitals, clinics or doctors
  • Poor cost control with growing pressure to tackle medical costs due to rising claims and pressure on margins
  • Difficulty negotiating cost reductions with hospitals, and huge number of suppliers (including doctors) to manage

What we did

  1. Initial project to identify opportunities for cost reduction for specific saving target (£16 million in year)
    – Developed and prioritised 14 opportunities
    – Integrated milestone plans to achieve savings that year
  2. Second phase project to extent treatment pathway opportunity (MSK) and develop new treatment pathways
    – Identified possible treatment pathways in major medical treatment areas
    – Developed and communicated a new analytical methodology to understand spend variance, behaviour across specialists, by hospital and pathway
    – Collaborated with medical experts to develop care journeys to triage, treat and follow up
    – Business cases developed to support cost effective pathways roll out

health insurance

The results

  • £16 million in cost savings in year identified and resource planning completed to ensure in year delivery
  • Identified a solid saving of up to £36 million cumulatively over three years via medical pathways
  • Trained out how to use new analytical methodology
  • Delivered relevant and valuable research (internal / external) to underpin treatment pathways including medical studies, historic analysis and case studies of implementation


cost savings identified


savings identified cumulatively over three years via medical pathways

Curzon consulting mca finalist 2019


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Curzon Consulting Financial Services

Chairman's Masterclass: "The Challenge of Longevity"

Event: The Challenge of Longevity

27 November 2019, London

Event details

Where: Central London

When: 7pm-10pm, 27 November 2019

What: Dinner, Speech from AIG CEO Adam Winslow and Q&A

About the speaker

On 27 November 2019 we will be joined by Adam Winslow, Interim Chief Executive Officer of AIG’s global Life Insurance business, to discuss the Challenge of Longevity.

American International Group, Inc. (AIG) is a leading global insurance organisation with operations in over 80 countries.

Adam is responsible for AIG’s global life business (US and international). He also is a member of AIG’s Life and Retirement Executive Team.

Adam has served as Executive Director, UK Distribution; COO, EMEA Consumer; CEO, AIG Life Ltd (UK), and CEO, International Life and Retirement in London, before he was named Chairman of the Board of the AIG GBN pooling network in January, 2019.

Previous to working with AIG, he served various roles at Laya Healthcare, Aviva, BGL Group, and Allianz Global Investors.

Who should attend?

The Chairman’s Masterclass Dinner Series is a forum for senior business to discuss topical issues under Chatham House Rules.

Typical attendees include Chief Executive Officers, Chief Financial Officers, Chief Commercial Officers, Chief Strategy and Transformation Officers, Managing Directors and business unit Directors.

Register your interest

Complete this form or email to register your interest

Please note that spaces are limited.

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    This is the latest event in our Chairman’s Masterclass Dinner series, providing UK business leaders with insight for over a decade.


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    Unlocking over £20m in increased gross margin at a major health insurer

    The issue

    • Shrinking customer base
    • 13 legacy books and numerous policy variants causing customer and staff confusion
    • Operationally complex to manage – high cost to serve
    • Existing proposition and pricing created trigger points for customer exit
    • Customers not segmented by value
    • No differentiated renewal or save strategies
    • Not pricing for risk or maximised value retention
    • Poor customer journey: passed from function to function, advisors not empowered

    What we did

    Designed & executed a pricing, product and service migration of all policyholders to one new modular product

    • Developed new proposition which drove retention of high value customers and higher return from lower value customers
    • Built in upgrade/downgrade ‘right-size’ choices to mitigate competitor switching
    • Created pricing engine enabling all business to move to NCD-based policies and set renewal premiums to optimise gross margin
    • Cut expected IT lead time to launch from 12 to 3 months
    • Changed customer communications and management processes to de-risk customer disruption & loss
    • Engaged Legal and regulator on ‘automatic renewal’ plans throughout
    • Piloted the transition on 2 highest lapse-risk books to ensure error-free process and no adverse increase in lapse rates

    The results

    • Exceeded the £20Mpa gross margin improvement target
    • Reduced customer loss by 25%
    • Improved operating cost ratio from 30% to 16% with greatly improved IT flexibility
    • Excellent customer and FSA feedback
    • Successfully rolled out from personal to SME & Group schemes


    exceeded the gross profit margin improvement target


    reduced customer loss


    reduction in operating costs

    An award-winning team

    Curzon consulting mca finalist 2019


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