Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities.

1. Terrorism Insurance

2. VISUAL PROBLEM DESCRIPTION
Holey Artisan Bakery was attacked by 5 local militants.
22 civilians and 2 police officers were killed.
1 July 201623 March 2017
In a housing complex in South Surma Upazila, 4
civilians, 2 police officers was killed and around 40 was
wounded by suicide bombing of local militants.
16 June 2001
A bomb attack at Bangladesh Awami League part office.
20 people killed, injured over 70.
A grenade attack took place at a rally organized by
Awami League on Bangabandhu Avenue. 24 people
killed, injured over 300.
17 August 2005

3. MARKET ANALYSIS
SOURCE: TRANDINGECONOMICS.COM
Terrorism Index in Bangladesh (TIB) decreased to 5.21 in 2018 from 5.70 in 2017. TIB
averaged 5.15 from 2002 until 2018, reaching an all time high of 6.48 in 2015 and a record
low of 4.10 in 2012.

4. MARKET ANALYSIS
SOURCE: TRANDINGECONOMICS.COM
52%
1%
23%
13%
7%
4%
Business Interruption
Aviation liability
Property Losses
Export Import Business
Life
Tourism Sector
Impact of Terrorism in Bagnladesh
Target Market: Businesses like reputed local business,
foreign trading company and property owners.

5. ORIGINAL BUSINESS CANVAS
Problems
⇀ Scarcity of historic data
⇀ Act of terrorism is not
random
⇀ Act of terrorism is often
geographically focused
⇀ Accumulation of risk
and adverse selection
⇀ Charge high premium
⇀ Problem in measuring
exposure of risk/loss
Solutions
✓ Reinsurance
✓ Target area
✓ Combine policy for state
and private insurance
✓ Diversification in target
market
✓ Tax benefit
Unique Value Proposition
➢ Providing protection to
shareholders as
shareholders also bear a
portion of risk relative to
financing capacity but in
case of claim
compensation they will
be in the last position.
Unfair Advantages
• First move
• Exclusive partnership
• Monopoly position in the
market
Customer Segments
• Trade sector
• Industrial sector
• Institutions
• Restaurants
• Hospitals
• Bank/Financial
institutions
• Hotels and Resorts
• Airport
• Train station
• Commercial urban center
Existing Alternative
▪ Property insurance
▪ Casualty insurance
Key Matrix
Monthly revenue:
=
92,500,000
60 months ∗1000 Policies
= BDT 1542
High Level concepts
▪ Partnership in law firm
▪ Unique advisory board
▪ Expert investigator
Channels
• Website
• Mobile app
• Banks & Parent Company
• Agents and Brokers
• Branches
• Social media
• Call center
Early Adaptor
1. MNCs
2. Local Mega Companies
3. Banks
4. Airports
Cost Structure
Fixed cost : (call center rent, utility bill, website development expense,
promotional activity expense, coding cost, delivery point set up, agents
commission)
Variable cost: Claim cost(15% of coverage amount)
Revenue Stream
Premium = BDT 2500 per monthly policy *12 * 5year *1000 policy
= BDT 150,000,000
Return on Investment = 150,000,000 * 15% = BDT 22,500,000

6. QUESTIONS 1 2 3
Do your business have a higher risk of being targeted for terrorist attack? Yes No Neural
Have your company faced any financial loss due to terrorist attack? High Medium Medium
Is your business located at terrorist attack zone? Yes No No
How is your feeling about our product? Positive Positive Positive
Will you be interested in paying for this policy? Yes Neural No
Will you be interested in protecting potential losses and liabilities that
might occur due to terrorist attack?
Yes Yes Yes
What price would you like to pay for the policy? 3000 2600 2300
Problem Interview

7. FINAL BUSINESS CANVAS
Problems
⇀ Scarcity of historic data
⇀ Act of terrorism is not
random
⇀ Act of terrorism is often
geographically focused
⇀ Accumulation of risk
and adverse selection
⇀ Charge high premium
⇀ Problem in measuring
exposure of risk/loss
Solutions
✓ Reinsurance
✓ Target area
✓ Combine policy for state
and private insurance
✓ Diversification in target
market
✓ Tax benefit
Unique Value Proposition
➢ Providing protection to
shareholders as
shareholders also bear a
portion of risk relative to
financing capacity but in
case of claim
compensation they will
be in the last position.
➢ Covering travel
insurance, casualty
insurance and property
insurance under
terrorism insurance.
Unfair Advantages
• First move
• Exclusive partnership
• Monopoly position in the
market
• Speed
• Networks
• Flexibility
Customer Segments
• Trade sector
• Industrial sector
• Institutions
• Restaurants
• Hospitals
• Bank/Financial
institutions
• Hotels and Resorts
• Airport
• Train station
• Commercial urban center
Existing Alternative
▪ Property insurance
▪ Casualty insurance
Key Matrix
Monthly revenue:
=
92,500,000
60 months ∗1000 Policies
= BDT 1542
High Level concepts
▪ Partnership in law firm
▪ Unique advisory board
▪ Expert investigator
Channels
• Website
• Mobile app
• Banks & Parent Company
• Agents and Brokers
• Branches
• Social media
• Call center
Early Adaptor
1. MNCs
2. Local Mega Companies
3. Banks
4. Airports
Cost Structure
Fixed cost : (call center rent, utility bill, website development expense,
promotional activity expense, coding cost, delivery point set up, agents
commission)
Variable cost: Claim cost(15% of coverage amount)
Revenue Stream
Premium = BDT 2500 per monthly policy *12 * 5year *1000 policy
= BDT 150,000,000
Return on Investment = 150,000,000 * 15% = BDT 22,500,000

8. PROCESS VISUALISATION
(SELLING POLICY)
Presentation
& Research
Prospecting
Discovery /
Need Assessment
Pitch /
Presentation
Objection
Handling
Close the Deal
Follow-Ups,
Repeat & Referrals

9. PROCESS VISUALISATION
(CLAIM SATTLEMENT)
Customer Claim
Assess Claim
Acceptation /
Rejection
Calculating
Payout Amount
Making
Payment
Yes
Send Rejection
To Customer

10. TECHNOLOGICAL & MARKET RISK
Ⳛ Chance of hacking data due to cyber crime
Ⳛ Security issues of services and customer data
Ⳛ Communication problem
Ⳛ Storage problem
Ⳛ Competition
Ⳛ Low market acceptance
Ⳛ Reputational risk
Ⳛ Unfavorable market condition
Ⳛ Reinvestment risk
Ⳛ Inflation risk
Ⳛ Off balance sheer risk
Ⳛ Interest rate risk

11. COST & REVENUE CALCULATION
FIXED COST
Management Cost 2000
Market Analysis 1000
Promotion 800
Agent Commission 700
Licensed Cost 500
Total 5000 (‘000)
VARIABLE COST
Probable claim cost (500000 *15%) = 75000 (‘000) BDT.
Assumptions
Claim cost 15% of the coverage amount
Target market 1000
Policy term 5 years

12. COST & REVENUE CALCULATION
Total Cost
= Total fixed cost + Total variable cost
= BDT (5000 + 75000)
= BDT 80000 (‘000)
= BDT 80000/1000= BDT 80 (‘000) Per Customer
Expected
Revenue
= Premium charged + Return on investment
= (2500*60) or BDT 150000000 + BDT 22500000
= BDT 172500000
=172500 – 80000 = BDT 92500 (‘000)

13. THANK YOU