The Client: A major UK general insurer operating an expanding complaint function, currently with 75 FTE (Full Time Equivalents).
The Challenge: More than 25,000 complaints were being received annually in three core product groups – Home, Creditor and Brokered, each with massive sub-product complexity. Complaint resolution was highly regulated by the Financial Ombudsman Service (FOS) who acted as a third tier in addition to the two-tier complaint handling process operated by the company.
Reinvigoration undertook a programme which included:
- A Lean Thinking pilot on the Home insurance team as it presented the greatest opportunity. The start point was to understanding the purpose – ‘to settle disputes as fairly and as quickly as we can’ (source: FOS)
- With this purpose in mind Reinvigoration designed against demand by:
- Removing huge product complexity by eliminating the myth that ‘every complaint is unique’ (runners, repeaters, strangers)
- Becoming process driven by creating standard resolution guidelines for runners and some repeaters
- Eliminating the batch and queue mentality that drove waste into processes
- The redesigned processes promoted the flow of work and consequently lowered cost, improved service and increased employee morale
- Thinking around complaint handling was revolutionised, creating 50% FTE savings or the equivalent of £200k p.a.
- Significant reduction in Work in Progress (WIP)
- Significant increase in the number of complaints closed in less than 5 days