Insurance & Guarantee Industry - Key Success Factors

 

Market Position

The assessments will include deep reviews on the company's market position or business position that will
also involve some of subjective analysis. The company's strengths and weaknesses in the market place are
very vital to the company's future business performance. The review will also try to measure the
sustainability level of the company's position within the industry as indicated by its market share, which
can be derived from franchise strengths and the overall competitive environment. Being a part of a long
and well-established international insurance group of companies might give some credit points to the
company's franchise strengths. The company's premium growth rates (historical vs. future), number of
policy-holders would also be assessed to measure the company's ability to grab customers and expand its
business going forward.

Distribution Channel and Capability

The assessments will include a diligent review on the company's network coverage to measure the
company's capability to persistently grab market shares in prospective areas. For certain business lines
such as surety bonds, location of branches are important factors to smoothly deal with the project owners,
and local as well as regional government. A big number of brokers working with the companies should also
strengthen the company's distribution channel capability to generate premiums. The existence of reliable
IT system may also provide a quick underwriting and claim process, as well as to expedite policy issuance
at the respective branches. The type of the company's distribution channel is also examined to see the
company's cost effectiveness as well as the impact to the company's revenues.

Management And Corporate Strategy

The qualitative analysis will play a dominant factor in assessing the company's management quality,
experience, credibility and strategy to successfully make the company well-positioned going forward,
especially in insurance industry whereas trust and image are very important. The analysis will cover the
examination on the management's strategic plans, operational controls and skills, financial strategies and goals, objectives in investment as well as management's tolerance for risks. The assessment will also try to see how well the management successfully executing their chosen strategies to achieve objectives. The management's guidelines or directions for maintaining levels of solvency, and gearing up of the balance sheet with debt are also diligently reviewed.