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Hi everyone!

does anyone have any experience with case studies in (financial) risk management consulting of insurance companies?

I have an interview and I would like to prepare myself, but I can not find appropriate information or any examples.

Thanks a lot

Francesco replied on November 15, 2016
Ex BCG | MBB Specialist | #1 Expert for meetings done (800+) and recommendation rate (100%)

Hi Mari,

risk manangement consulting interviews normally involve insurance cases; the methodology to solve the cases it's usually the same as for traditional strategy consulting interviews, although the focus is on a specific sector.

Insurance cases are normally related to damages prevention or healthcare protection; you can find two examples below.

Case 1: Damages

Your client Progressive Corporation (NYSE: PGR), also known as Progressive Casualty Insurance Company through its subsidiaries, is a major insurance company that provides personal automobile insurance, and other specialty property-casualty insurance and related services in the United States. Progressive has just learned that its major competitor GEICO has announced the initial roll-out of a new program in Texas. GEICO calls the new program “Pay as You Go” in which a GPS tracking device is installed in each insured car as part of the program, and reports the location of the insured vehicle on a minute-by-minute basis and records the miles travelled. Progressive wants to know whether it should respond and how.

Additional Information:

• The client company Progressive is unremarkable in the industry, on par with the top five players (GEICO, State Farm, Allstate, Progressive, Nationwide Insurance).

• No particular competitive advantage exists. The auto insurance industry is rather commoditized.

• There is heavy price competition within the industry, and the industry is highly regulated.

Case 2: Healthcare

Your client Aetna, Inc. (NYSE: AET) is a healthcare insurance company that serves the Medicare population. As one of the largest managed health care companies in the U.S., Aetna sells traditional and consumer directed health care insurance plans and related services, such as medical, aetna medicarepharmaceutical, dental, behavioral health, long-term care, and disability plans.

Over the past two years, your client Aetna and some other healthcare insurance companies have started offering “private fee-for-service” (PFFS) to their respective Medicare patients. The benefit to the patient is that with PFFS, the patient has access to “out-of-network” providers that otherwise would not be covered by their health insurance plan. With the PFFS program, the patient interacts with their healthcare insurance company directly, while Medicare compensates the insurance company for the fees involved.

Your client launched their PFFS program two years ago. They expect the product to gain in popularity among their members. Other healthcare insurance companies also expect PFFS to grow. However, many insurance companies who have started offering PFFS are concerned because they do not currently have the additional administrative support needed in their billing departments to process all the PFFS claims.

Your client Aetna is therefore interested in launching a “B to B” model to offer billing services to other healthcare insurance companies that are looking to outsource the work involved in processing PFFS claims. Is it a good idea for your client to offer this new service? Why or why not?

As for the material for the preparation and the preparation method itself, you can find some references at the following links:

https://www.preplounge.com/en/consulting-forum/branch-manager-case-study-interview-320

https://www.preplounge.com/en/consulting-forum/case-interview-313

Happy to help more if I can.

Best,

Francesco

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