1. Distribution 20% Agency, Direct, Direct
Marketing, Brokers, IFAs
Product / Risk 55% Value of losses (claims)
General Operating
Expenses
13-20%
Policy Operation
Re-insurance 5%
Agency, Direct, Direct
Marketing
Fraud 5%
Inflated and fradulent
claims
Claims management
Risk evaluation
(underwriting)
Product development and
management
Marketing / Branding / PR
Premium Investments
(PAR fund, Float)
7%
Customer service
Costs Customer ValueStack Element Details
10%
Opportunity
H
Insurance stack: Value vs. Costs illustrates the mismatch and opportunities
5%
80%
5%
0
10%
2%
5%
0
1%
0
2%
Insurer Profit 2% - 9%
Focus on rapid model scalability
Profit margin remains similar
10%
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M L
H
H
H
L
M
H
H
L
L
M
M