•  Cost of initial development

Should probably eliminate the cost of the learning curve from this

•  Cost of ongoing development

Most studies, and the insurance industry is particularly prone to this, show that the total lifetime cost of an application is dominated by its ongoing maintenance and development with IT departments often spending 75% of their budget on maintenance. BPMS and BRMS are foundations for systems that are easier and cheaper to maintain.

•  Cost to make a specific change

Such as implementing a new regulatory requirement

•  Time to make a specific change

Can be significant as fines might accrue while the change is unmade and competitors may take market share away from you until you respond

•  Fines

BRMS and BPMS tend to make decisions and processes more accurate and so less prone to fines

•  Cost per transaction

Reduced staffing costs are often a consequence of more thorough automation

•  Straight Through Processing rate

The percentage of transactions decided automatically can be a good measure for success

•  Consistency across Agents

The acceptance rate and other metrics of Agent behavior should be more consistent with automation as individual mistakes/hidden preferences are eliminated

•  Appeals

How many prospects or customers appeal the price for a policy or the payment/non-payment of a claim? More accurate decisions and processing should reduce appeal rates

•  Reports ordered

A common business cost in insurance is the purchase of external data such as Motor Vehicle Reports or house inspections. Automation using BPMS and BRMS can reduce the need to order these reports, and so save money, by only ordering them when they would make a difference

•  Mail, fax and shipping costs

Many organizations find they can reduce their fax, mail, FedEX/UPS and other shipping costs when using BPMS/BRMS to automate processes and decisions. The automation of links between units and parts of a process eliminates the need to print and mail things to people.

•  Cross-sell/Up-sell rates

Organizations often find that using BRMS (and analytics) to manage up-sell and cross-sell within a process is more reliable than hoping that individuals will do a good job of it. The increased revenue from these better decisions can be significant

•  Precision or how accurate and profitable is the decision

•  Consistency across channels, time and geography

•  Agility in terms of time and cost to change the way a decision is made

•  Speed in terms of how fast a particular decision is made

•  Cost in terms of how much staff time, resources and cash must be spent making the decision