The insurance industry faces significant operational inefficiencies—collectively known as the Friction Gap—that inflate costs, erode profitability, and limit competitive advantage. Much of this is driven by inefficient processes, legacy system limitations, sub-optimal business practices often exacerbated by the need for workarounds managed by staff. Lack of insight available to both staff and management impacts the ability to manage effectively on both the tactical and strategic level. Traditionally, when looking to address issues or improve capabilities, insurers usually increase headcount as a way to quickly address issues.This inadvertently boosts expenses with the hope that results will improve, such as a lower loss ratio, increases to premium or improvements in retention.This “strategy of hope” does not always bear fruit. PS Advisory specializes in helping insurers effectively bridge this Friction Gap. By streamlining operations, harnessing advanced technology and data analytics, and refining underwriting and claims management, insurers can significantly reduce costs, enhance profitability, and achieve operational excellence without having to add to expenses. At this point in time in the industry, insurers can actually improve both quality and service while reducing costs by effectively leveraging technology. When determining what strategy an insurer is going to select, it is in the insurer's. best interest to identify how the chosen strategy impacts the organization's friction and the combined ratio. To improve approval success rate for proposed projects, it is helpful to understand how proposed projects address the Friction Gap and will improve the expense or loss ratio. When put in this context, proposals touch on something senior management cares about deeply. 03 Bridging the Friction Gap: Revolutionizing P&C Insurance Operations