Post by emagine

For workplace pension providers and retail savings businesses, the commercial pressure is clear. But there's a structural cost problem hiding in plain sight. 🥷🔍 Welcome to instalment six of emagine's Life and Pensions series. In a market where buy-out margins are tightening and the yield environment that supported recent profitability may not persist, the firms that win will be those with the leanest, most resilient operational cost bases. And that means confronting a challenge many have avoided. As closed books run off and policy volumes decline, fixed legacy IT and BPO costs are spread across fewer and fewer policyholders - pushing cost‑per‑policy up even as overall volumes decline. The sourcing models that made sense 10 years ago were designed for scale that no longer exists. What we've found works: - Benchmarking IT and BPO performance against market data, not historical contracts - Designing right‑sized operating models that match today’s business reality - Managing sourcing transitions safely without exposing the business to legacy‑exit risk The firms taking this seriously now are building a cost base that can compete. The rest are locked in. If you're preparing for a migration, closed‑book consolidation, or legacy exit, we’re always happy to share what we’ve learned in practice. You can reach Rory Morrison at [email protected] for a conversation. #lifeandpensions #strategicsourcing #operatingmodel #bpo #insurancetransformation