Overview
Royal & SunAlliance today
Operational Excellence
Our continuous focus on our core disciplines of underwriting, claims and expense management is providing us with real competitive advantage.
In 2003 we set out a plan to improve our core competencies; underwriting, claims and expense management and deliver annualised expense savings of £270m by the end of 2006. We have made good progress through restructuring the business, implementing new systems and focusing on underwriting, claims and customer service. At the end of 2005 we have delivered £240m of annualised expense savings.
Through the actions we have taken over the last three years we have reduced MORE TH>N's expense ratio by 14 points to 24.1% at the year end.
We have reduced the Core Group's claims ratio by 2.5 points over the year. In Canada and Ireland claims leakage has halved. In the UK we have built a market leading supply chain and have won contracts with two companies to use our supply chain infrastructure.
We are focused on continuous operational excellence and have a range of initiatives to improve efficiency, procedures and develop a culture of accountability. We continue to embed a performance culture. In the last two years we have strengthened the top management team and clearly aligned reward with personal performance for over 80% of employees and are targeting 90% by the end of 2006.
We have developed a Group risk appetite which defines the type and level of risk the Group wants to take. This is underpinned by a disciplined approach towards risk selection and underwriting with clearly defined levels of authority.
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