Classification of business processes - Insurance

4.2.2. Classification of business processes

In order to build a BP system, it is necessary to consider its generalized classification, on the basis of which the BP process is created.

BP Typology

1. Types of BPs in terms of orientation:

■ on the client (the consumer);

■ on the provider :

- the main component (associated with the activity) - in this case - the reinsurer;

- auxiliary (serving) component;

■ on the counterparty:

- outsourcing, including assistants & quot ;;

- financial institutions (banks, investment companies);

■ internal BPs:

- unit interaction;

- strategy development;

- the development of standards (including quality standards).

2. Types of BPs in terms of direction:

■ aimed at generating income:

- attraction (resumption of the contract);

- Risk assessment and counseling of the client;

- underwriting (quoting) of risk;

- registration (acceptance of risk);

- Payment;

- reflection (reporting) - fixation in databases and accounting;

- allocation of risks (PE);

- loss adjustment: fixation, valuation, analysis, conclusion, payment;

■ aimed at reducing costs;

■ aimed at streamlining the interaction between units (increasing internal efficiency), reducing transit time, minimizing defects.

3. Types of BPs in terms of differentiation and multivariance:

■ elementary BP - a sequential chain of actions for an unambiguous answer to any question. The goal is the satisfaction of a specific client request. (Example: slip acceptance, risk quote, fixing of the loss, etc.),

■ general BP - processes aimed at developing the company's strategy:

- entering the new market;

- formation of investment policy;

- rebranding;

- spinning;

■ multivariant BPs assume a transition from a complex BP to a set of elementary BPs:

- the main block (vertical);

- block of variability (deviation) of solutions (output to adjacent BP);

■ burning BP - processes with a large number of defects (errors, omissions, defects, complaints), i.e. those that currently have manifested defects that reduce the demand for the product;

■ observed BP processes that require attention due to the possibility of manifesting undetected defects;

■ expected BPs are processes that, due to certain events (solutions), will be in great demand, but not yet described, those that are to be created from the ground up in the near future;

■ Priority BP processes, the optimization of which greatly influences the increase in the company's revenue or the reduction of its costs;

■ BP attract (customers) - active processes - initiated by the entity (company) itself, aimed at generating the company's revenue;

■ Service BS - passive processes - generated by customer requests (needs)

■ internal processes - aimed at streamlining the horizontal interaction of services at the request of company employees and department heads

■ a block of the same type of operations (BOO) - something that can be included in different processes as a standard characteristic set of sequential actions:

- sending mail correspondence;

- fax-mailing;

- document registration;

- reflection of an insurance operation in an information or accounting database.

Classification analysis of the BP allows you to determine its internal structure, possible relationship with other BP and the importance in the company's activities.

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