Question

In: Finance

Discussion 1. In a new report, Celent Model Insurer 2013: Case Studies of Effective Technology Use...

Discussion
1. In a new report, Celent Model Insurer 2013: Case Studies of Effective Technology Use in Insurance, Celent recognizes 17 insurance technology initiatives as “Model Insurer Components.” These best practices in the use of technology span key areas of the product and policyholder lifecycle, including product development, distribution, underwriting, policy administration, IT management, claims, and infrastructure. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.
“Insurers continue to stress innovation in their initiatives. However, IT projects that reduce long-term costs, improve back office operations, and provide better customer service are also prevalent in this year’s award winning projects,” “Insurers continue to concentrate on improving operations but are also stepping up their use of emerging technologies.”
Discuss the importance of information technology to an insurer and evaluate the IT trends for insurers based on the materials given.
2. Trov, the provider of on-demand insurance for individual items, has raised $45 million for its global expansion efforts. The company is one of a growing number of tech-enabled startups that are looking to change the insurance business and carve out a piece of that multi-trillion-dollar industry. At Danville, Calif.-based Trov, that means providing insurance policies for individual items on mobile phones.
Insurers have found themselves in a bind in recent years, with home ownership declining and the number of households that don’t own cars rising (albeit slightly). Those two trends could accelerate as younger consumers look to rent more and own less. Trov plays into these trends by offering insurance policies on things that millennials do own… namely electronics. Typically a Trov policy covers items of around $1,000, which makes the company’s policies a numbers game rather than a play for big ticket policies. Digging into the policies a little deeper, about 35% of the policy holders who take out a Trov policy do turn off their coverage after a time. Most leave them on — again, the period the company is tracking isn’t all that long so these numbers could change significantly.
Use the five forces model to evaluate Trov’s growth strategy.

Solutions

Expert Solution

Answer )

Porter's Five Forces model identifies and analyzes major 5 competitive forces that requires to shape a industry, and support to find industry's weaknesses and strengths. In the current case of Trov insurance, which is one of the new intiative of its own kind to provide insurance to masses with minimum value of around $1000 for all products.

The forces of the model are:

1. Competition in the industry: As the industry is an innovative type of its oen kind, current competition level is low . The profitability link to the business will attract competition in future.

2. Potential of New Entrants: A company's growth is also attracted by the force of new entrants. As the business is mainly based on technology ,so requires less time and money . The easy requirements of entry may be significantly weakened the Trov insurance position in future.

3. Power of suppliers : It is affected by the number of suppliers in the industry by supply of good or service, in the industry there is no restriction on supplier . Customers can switch supplier without involvement of cost.

4. Power of Customers: This is very crucial in the industry, the ability customers have to drive prices down. the customer can swith their provider without any cost.

5.Threat of Substitutes: Competitor substitutes that can be used in place of a company's products or services pose a threat. in such industry threat of subsitute is maximum as it doesn't involve cost .


Related Solutions

Discussion 1. In a new report, Celent Model Insurer 2013: Case Studies of Effective Technology Use...
Discussion 1. In a new report, Celent Model Insurer 2013: Case Studies of Effective Technology Use in Insurance, Celent recognizes 17 insurance technology initiatives as “Model Insurer Components.” These best practices in the use of technology span key areas of the product and policyholder lifecycle, including product development, distribution, underwriting, policy administration, IT management, claims, and infrastructure. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components. “Insurers continue to stress innovation...
Question 1: SDLC Model Case Studies Scenario 1: There is a solution company that basically were...
Question 1: SDLC Model Case Studies Scenario 1: There is a solution company that basically were expert in installing this particular HR management system in big retailers. So let's say company X need to install a well-known HR management system at a big retailer’s headquarter. And the solution company have done this install many times, and similar retailers, big retailers before. So the question is, what model will fit best in this situation? Model Name: Reason: Scenario 2: There is...
This week's discussion will consist of case studies dealing with worker's compensation. Based on this week's...
This week's discussion will consist of case studies dealing with worker's compensation. Based on this week's learning objectives, provide a short paragraph for each of the following questions: a. Injured worker Melissa McCain was in an accident in a work vehicle, which resulted in amputation of both legs as a result of injuries sustained. What type of income benefits does she qualify for? b. Injured worker Howard White was burned on the hand and has been off for 7 days....
Use-Case Discussion 1) In what situations would the additional effort to develop use-case definitions be superior...
Use-Case Discussion 1) In what situations would the additional effort to develop use-case definitions be superior to only having functional requirements? How would the programmer/analyst benefit from the use-case approach over just having functional requirements only? How would the project manager potentially benefit? 2) Should use-case be used in all projects? Discuss why or why not?
Subject: Innovation and technology management Case 1: Use of Technology Federal Express (FedEx) was founded about...
Subject: Innovation and technology management Case 1: Use of Technology Federal Express (FedEx) was founded about 50 years ago. It handles on an average of 3 million package-tracking requests on a daily basis. To remain ahead of its competitors, FedEx strives on customer service by keeping a comprehensive website, FedEx.com. It increases customer service and reduces costs. For example, each request for information which can be retrieved from the website rather than by the call centre help FedEx to save...
Discussion 6 Case Study CEMEX: A Model Multinational from an Unusual Place Our discussion in the...
Discussion 6 Case Study CEMEX: A Model Multinational from an Unusual Place Our discussion in the text stresses that multinationals succeed by using their firm-specific advantages throughout their global operations. We have also noted that most foreign direct investments are made by firms based in the industrialized countries. This is the story of CEMEX, a firm that rapidly has become multinational since 1990. The reasons for its multinational success fit very well with the advantages stressed in the eclectic approach....
Use supporting details for discussion.. Use the Internet to research an annual report of a retail...
Use supporting details for discussion.. Use the Internet to research an annual report of a retail company. Then, imagine you are an investor or creditor and suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company’s financial condition. When analyzing a company, is it more important to compare the ratios to competitors or to the company’s previous history? Provide a rationale for your response. Note:...
What is the Ricardian model and H-O theory? Explain the differences of above with case studies...
What is the Ricardian model and H-O theory? Explain the differences of above with case studies explaining international trade patterns among two countries. 300 Words.
For our discussion this week, find information on a new technology that you think will impact...
For our discussion this week, find information on a new technology that you think will impact auditing. Post a discussion item with the following: A description of the technology and what it does The potential impact on auditing Source your information so others can reference it
1. Use the Solow growth model to demonstrate how differences in access to technology can cause...
1. Use the Solow growth model to demonstrate how differences in access to technology can cause highly-developed countries and lesser-developed countries can both at low rates and never converge. Include in your answer a description of the differences in access to technology and illustrations of the consequences for long-run capital stock per worker, long-run output per worker, and the time paths of output per worker from the short-run to the long-run. 2. Use the Solow growth model to demonstrate how...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT