13. Some companies have carved out niche areas in which they underwrite insurance. These insurance companies are fearful of being squeezed out by the big players
14. Another threat for many insurance companies is other financial services companies entering the market
29. Lower costs, greater efficiency, better customer service is the key
30.
31.
32. Up sell offerings to current set of customers.
33. Innovate on intellectual property and build a new set of hygiene factors which can be leveraged.
34.
35. Substitution: This set of initiatives is hard to substitute with a different service or initiative (3/10)
36. Hold up: Tier 2 companies and bigger companies can to an extent hold up the efforts by launching counter initiatives of their own. Besides that, no internal weaknesses can possibly cause major hold ups. ( 4/10)
37. Slack: In house efficiency is high and this is not likely going to be a roadblock ( 3/10)Conclusion: The strategy is moderately sustainable. (4/10)
38. IT spend in the insurance Industry Total Insurance spend :- Around 8 Billion USD Real figures have been masked due to confidentiality requirements 8
39. Company vs competition Graphical representation of market share (BFSI ) Source: moneycontrol.com, Annual reports 9
40. Revenue for sales turnover by geography ( net sales) Source: annual reports of respective companies 10
42. Market Share for Insurance vertical Total market = roughly 1.64 billion USD for these number of players Total market North America= roughly 1.05 billion USD Total market Europe =roughly 0.39 billion USD 12
48. 18 Example of a tracker which can be used to track market optimism Step 1 :- Number of leads in a given month to be entered Step 2 :- The Tracker calculates the market optimism
51. Focus on Life Insurance segmentSample size -67; Nasdaq and Google 19
52. Additional Thoughts Number of companies in sample list- 67 Number of companies who are clients - 16 Percentage of population who are clients – 24% 20
53. Participants in the Business Buying Process of clients: Initiator: The individual/group who requested for something to be purchased User: The ones who will use the product or service Influencers: Ones who influence buying decision ( can define specifications And provide info on alternatives) Deciders : People who decide on product requirements or suppliers. Approvers : People who authorize deciders. Buyers: People who have formal authority to select the supplier and arrange purchase terms. Gatekeepers: people who have the power to prevent sellers or info from reaching members of the buying center, purchase agents, phone operators etc. 21
54. How will companies decide to take the The Company offerings? 5 Knowledge Persuasion Accept Decision Reject Implementation Stages confirmation 22
100. Focus on certain sectors eg : Reinsurance to diversify risk in case of market pessimism ( based on optimism vs payoff calculations)
101.
102. Focus on initiatives which have potential of high ROI – due to the fact that The Company has a slightly weaker balance sheet strength compared to current major competitors
103. Can decide on whether or not to provide complimentary services ( BPO, ITO, Apps) to the market as the early majority might be willing to outsource and take these offerings.
104.
105. Focus on products/ offerings which will help clients to:-
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