Driving efficiency is key to maintaining competiveness in today’s modern economy. Aon employs a specific set of tools we refer to as Tactical Cost Saving Levers to enable rapid identification and realization of hard dollar savings. Our approach focuses on areas often over looked by companies and leverages proprietary databases and analytic techniques and focuses on the following areas:
Total cost of risk (TCOR): Proprietary TCOR analytics diagnostic relies on Aon’s premium and claims database to evaluate an organization’s performance over 30 quantitative and qualitative performance indicators and benchmarks for the most significant elements of a risk program. Common levers typically considered are:
This can have impact of 10-15% reduction TCOR/sustainable expense reduction.
Driving efficiency is key to maintaining competiveness in today’s modern economy. Aon employs a specific set of tools we refer to as Tactical Cost Saving Levers to enable rapid identification and realization of hard dollar savings. Our approach focuses on areas often over looked by companies and leverages proprietary databases and analytic techniques and focuses on the following areas:
Total cost of risk (TCOR): Proprietary TCOR analytics diagnostic relies on Aon’s premium and claims database to evaluate an organization’s performance over 30 quantitative and qualitative performance indicators and benchmarks for the most significant elements of a risk program. Common levers typically considered are:
This can have impact of 10-15% reduction TCOR/sustainable expense reduction.
Health & benefits: Health & benefits diagnostic of key areas for cost reduction. Aon’s analysis will include:
The potential impact is a 10-15% reduction in health & benefits costs or ~US $800-US $1,200 per employee per year.
Sales general & administration (SGA): Organization analytics and proprietary cost benchmark data enable comparison to peer companies, rapid identification of SG&A cost reduction opportunities, and identification of concrete action steps to realize a sustainable cost structure based on:
Typical results of 7-12% reduction in annual employee SG&A expense.
In addition, Aon’s human capital expertise in action planning mitigates the risk of hidden costs due to worker compensation claims, productivity decreases, unplanned attrition, and works council constraints.
Data collection and initial analytics |
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Cost savings lever identification | ![]() |
Develop value capture plan |
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Approximate timing* |
2-4 Weeks |
~4-6 Weeks |
~2-4 Weeks |
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Activity |
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Overview
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Overview
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