Post on 26-Feb-2021
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SMEsPRODUCT DEVELOPMENT SOLUTIONS
LIMA Programme2020
“SMEs represent an important part of the South African economy. With almost 670,000 SMEs, they are the engine of the economy with a contribution of 21% of the GDP.”
Gunther RempelSenior ConsultantMunich Re
03 September 2020Gunther Rempel – Munich RE Global Consulting
SMEsPRODUCT DEVELOPMENT SOLUTIONS
WHY SME?
Why SME?… and how Munich Re can provide value to your clients
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SMEis not …
but
SMEis …
a defined service a defined business segment a product
a P&C product bundle entering point into the market for commercial insurance more ready-made then tailor made
So how can Munich Re / Global Consulting (co)create value?
… by being a specialist for P&C bundle products having a product offering transferable to your market and knowing about the key success factor and major failures in commercial lines
Why SME?SMEs in Kenya, South Africa and the Global Economy
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According to official surveys almost 7.4million firms (1.6m licensed & 5.8m unsilenced) marked as SME in Kenya, approx. 2.2 millions in ZA (670,00 formal & 1,500,000 informal)
Small equals fewer than 50 paid employees Medium-sized with at least 51 but max 99 or 250 (ZA)
employees.
providing substantial contribution to employment offering 67% of total permanent, full-time employment according to
World Bank report stats contribute between 50%-60% of value added in the OECD basis come in all shapes and sizes and have different, and sometimes
complex, needs are an attractive market for insurers with higher policy premiums than
personal insurance1 “Small vs. Young Firms across the World: Contribution to Job Creation, Employment, and Growth”, World Bank 20112 KNBS 2016 The SME Survey/ BER 2016 – The SME Sector in ZA
Share of businesses per number of employees in ZA / Kenia ²
Employment contribution by SMEs (<250 employees)1
78%67%
59% 66%
Lower IncomeCountry
Lower MiddelIncome Country
Upper MiddelIncome Country
High IncomeCountry
SMEs …
0%
100%
Mirco Smal Medium
Share of SME´sKenia
SouthAfrica
GDP contribution for SME sector 28.5% for Kenya.
Approx. 21% of GDP in South Africa, which is likely to be influenced by large contributions from mining operations to GDP in ZA).
Identification of most promising segment in your marketTargeting the right clients to make the right offering
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Data on SME need to be further investigated for identification of target
Our offering
Munich RE IT E2E Insurance suite Munich RE SME Services
Frontend Backend/Policy Admin System Pricing Engine Dashboard Claims handling
Market segmentation + target groups SME Product Warehouse SME Product Concept Support in creating product wording + UW
Guidelines Pricing and monitoring support
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Go LivePROJECT START
Client segmentation and product definition
TIMELINE:
you are already selling an SME bundle and you want to try out a new product design and new sales channels you are already into commercial insurance, but you do not have a SME bundle product yet and want to accelerate your go-to-market approach
This is the right Service for you, if
Our SME offer combines a set of Munich RE initiatives and expertise to a full cycle SME offering of high relevance to your clients
Goal is to co-create and go-live with an initial SME offering within 6 month as starting point for digital sales in your SME market
Offering can be adopted to your specific needs choosing from a pre-defined set of product and service components:
Definition
AFTER ̴̴ 3 MONTHSTechnical Infrastructure
AFTER ̴̴ 5 MONTHSTest + Implementation
AFTER ̴̴ 6 MONTHS
Creating value for you and your clientsFull cycle SME Offering targeting small companies
Creating value for you and your clientsFull cycle SME Offering targeting small companies
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Modules developed together with Munich RE. Implementation on client's system using MR pricing systematic for monitoring
Implementation on cient's Frontend and Policy administration sytem or in a sand-box environment provided
A “Brick” can be: A peril (e.g. Fire) A coverage (e.g. Glass) An Add on (e.g. Loss of rent) A value-added Service (e.g. Helpline)
Attached to a Specific Wording Limits & Deductibles Business Rules (e.g. only in combination
with xy, only for occupancy code xy) Needed parameters of risk assessment
Brick
Helping to set up a monitoring solution or building a monitoring solution on MR plattform
Advice on processes and claims TPAs to form a basis for later fraud solutions + tariff and wording adaptation
Refinig initial pricing with claims/ protfolio data
A predefined set of product components To build and change a product offering fast and easy + supporting an MVP approach Highly scalable
Product Warehouse
Brick
Initial Brief Build up Product Constituents
DefineDistribution
ChannelIdentify Customer
Segment and Occupancies
Product Concept
Initial Pricing
Build and Test Prototype with
Customers
IT / Systems Architecture
Go to market strategy
Define Objectives Product Concept Design Implement
Customer Interview and validation
Sprints (Development and demo)
Define Launch Scope
Design Operational Processes
KickOff
Market Analysis and Data assessment
InnovativeFeatures
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Creating value for you and your clientsCo creation design process
Developing a SME Value PropositionOur SME Product Concept
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Developing a SME Value PropositionOur SME Product Concept
14Munich Re - Strategic Partnership Exploration
Key Success factors in SME businessSales Excellence
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USP of tied agents is their advisory expertise
Willing to give discounts at point of sale
Willing to upsell and cross: Bundle products ideal for this sales channel
Most price competitive sales channel
Aggregators mostly rate the different products. Product design fit to aggregators rating of high relevance
Tied Agents Brokers Aggregators
USP of brokers is a good market overview
Require a competitive first quote from insurers (no later discounts)
Rather sell a single coverage from one insurer then a bundle
Banks
Selling insurance is not the main expertise of banks but willing to create new rev. streams
Products need to be fast+easy to sell
Good technical integration is a key success factor
Vast majority of P&C business worldwide still sold via intermediaries Aggregators, comparing different offerings for brokers and also for direct sales to end customers become more important Each sales channel has its own demands concerning product design, rates and discounts
Knowing and selecting the relevant sales channels for your offering is crucial for business success
Fast and convenient quote essential
Known brand + good marketing relevant to get traffic on the landing page
Purchasing online, SME companies still want personal advice available
Direct Sales
Creating value for you and your clients… why Munich RE is the right partner to develop the SME Segment
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Other Munich Re entities•Data (Data Hunting)•Platforms (Frontend, Policy Admin, Pricing Engine, Dashboard)
•Special Know-how (for example IoT)
Client Management•Access to the experiences of insurers•Provide reinsurance capacity•Enhancement of client relationship to compensate the efforts invested by MR
Munich Re / Global Consulting•Product development expertise incl. customer segmentation & monitoring
•International market expertise + best practice
•Project management know-how
Client / Strategic Partner•Local market expertise•Capacity + motivation for co-development
•Pricing expertise•Risk Appetite
ClientGlobal
Consulting
Other Munich
RE entities
Client Manager/
UW
Create profitable growth by building up a new SME or enhancing an existing SME offering profiting from the international know how and expertise of Munich RE and further being your partner for the insurance industry going beyond reinsurance
What’s in for you?
Sharing the riskSharing the risk
Being a strategic
partner for Munch RE
Being a strategic
partner for Munch RE
Product expertiseProduct
expertise
Services and IT Infra-
structure
Services and IT Infra-
structure
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Use Cases
Property Insurance
Online property insurance in France Cooperation between Munich Re and French
InsureTech startup Go live in Jul 2019 “We can now onboard, control and adjust. This will be crucial
when players like Lemonade come to us. So once again, thanks for the great work and collaboration“ – Patrice Cohen
SME Online Insurance
Partnership between Munich Re and InsureTec start-up NEXT Insurance
Delivery of SME online insurance for US market, one-stop-shop business approach
$100M GWP, 1300 professions covered “Next’s data- and technology-driven business model offers
outstanding growth opportunities, which we harness together. Next Insurance benefits from our expertise in primary insurance and reinsurance.” – Joachim Wenning
XYZ Versicherung – SME products
German Start Up offering digital SME insurance Consulting project to co-develop innovative
products for specific target groups including IoT Kick-Off in May 2020
Comprehensive Consult ing project in the Saudi market
SME portfolio and process validation focused on pricing methodology as well as risk management and claims
Optimization of insurance process and portfolios across the whole value chain (pricing, underwriting, claims, ongoing portfolio monitoring)
Customer Success StoriesMunich Re partners with Insurance and FinTech Partners to drive new, digital business models
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France USA
Saudi-Arabia
Germany
Thank you for your attentionMunich Re / Global Consulting
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