Prompt: Client is a health insurance firm that collects a fixed monthly premium per person covered under the plan. In exchange, it pays for all health services that the member requires. In recent years, firm's financial and competitive position has begun to erode, and the CEO has retained you to help them determine what is causing the problem and how to fix it.
Upon asking clarifying questions, it is revealed that firm is a mutual insurance company and does not seek to minimize profits and seeks to mimize costs.
(1) What is a good approach/structure to use for when solving such a case?
(2) What are the cues that led you to arriving at the proposed strucutre?