Week 5: Assignment: PAPER: Business Plan
Traveler’s product offerings have grown and proven successful over the test of time. From 2010-2015, The Travelers Companies stock price has risen from approximately $48.00 to approximately $100.00 where is stands today. Property and Casualty insurance is a service/product that typically at its core, remain the same internationally. While subtle changes will be necessary will offering the product in another country, I am confident that with our proven business models across all lines of business and ability to staff and train, now is the time to further expand internationally.
Peru, one of the most rapidly growing and emerging markets in the world. Peru’s continuous economic growth, make it a very attractive market when considering expansion for Property and Casualty insurance. Peru offers substantial growth opportunities for insurers if they understand the various cultures and business dynamics in the country. Tapping the emerging middle classes here is also crucial.
The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%.
In terms of Property and Casualty Insurance Premium currently being written in Peru, over 2 billion dollars in Non-Life insurance premium was written in 2013 with P&C insurance being the most prevalent line of insurance premium being written.
When doing business in Peru, Lloyds’s country comparison reports ranks Peru 35th out of 189 rank country in regards to ease of doing business. The Regulatory Quality ranked 68th out 189 and with our services, import & export regulations and tariffs should not greatly impact out business within the country.
Our competitive advantage comes from leveraging our current business model that has made us successful in United States and in other foreign markets including Brazil.
Vendor & Contractor Relations have been major contributing factors to our success. A strength of our model in the US is we know who to partner with; we need to know those same partnerships in the local area. We’ll need to find new contactors/vendors that have the same level of service our customers have come to know:
Ability to leverage our vast data to make quicker and better decisions at the individual account level
Superior service from claim professionals with specialized expertise and experience
Culture emphasizes the importance of talent development: training, mentoring, recognition, succession
Forensic Engineers and Lab
Knowledgeable and experienced staff with expertise in risk management/loss prevention services
Domestically, top 5 company with 70% of agents – simple and efficient for agents/brokers with which to do business. We can leveraging U.S. distribution management capabilities to International operations
Extensive product offering fits a wide range of P&C needs, delivered with specialized local market knowledge
Products Liability Group
High-growth in Peru’s market will require smart and sophisticated operations. Leaders in the region are investing in technology to achieve efficiencies, improve underwriting/claims analytics and target profitable market segments. Analytics is particularly important. Deep data analysis can produce results, but only if insurers make sufficient investments in technology and talent. Our primary competitive advantage will be that most of Peru’s current insurers are not technically prepared for high levels of risk and capital management.
Languages – Spanish & Quechua
Currency – Nuevo Sol
Literacy Rate – 93.84%
Internet Adoption – 42%
Agriculturally Base society
High importance of family, religion, and…