Twenty Third Floor

Figuring out the future and the now

Category: competition

Actuarial and Risk, business tools, competition, creating value, economics, financial risk, insight, managing uncertainty, measurement, modelling, optimisation

5 Things to Learn from Monopoly

28 August 2010

David Kirk

I haven’t played Monopoly in a while (preferring Settlers of Catan, Carcasonne, Tigris and Euphrates and even Cranium), but after a recent conversation I started thinking about the game dynamics. There is surprisingly much that is relevant to the current story of our economy. 1 The Competition Commission is necessary Monopolies serve to increase prices…
Read more: 5 Things to Learn from Monopoly
banking, competition, creating value, economics, financial risk, insight, managing uncertainty, optimisation

Airline safety rules damage profitability

8 April 2010

David Kirk

The safety rules and rigorous enforcement of these regulations damages the profitability of the entire industry – just not in the way you might think. Regulations and Big Bank Buildings Why have banks historically had impressiveÂ marble-slathered floors and columns, high ceilings and ornate, heavy front doors? Would you really deposit your salary and savings…
Read more: Airline safety rules damage profitability
communication, competition, creating value, customer value, distribution, economics, insight, measurement, modelling, news, operational risk, optimisation, predictive modelling

Interconnecting confusion

11 March 2010

David Kirk

Interconnect fees and the reasons for their reduction are possibly the most misunderstood “big” news story over the last twelve months. The hype and hoopla around this topic is fueled by our feelings as consumers of being charged too much big big monopoly companies. So I should start by saying that I’m not saying that…
Read more: Interconnecting confusion
competition, creating value, data analysis, economics, marketing, measurement

Why hotels should charge high prices during soccer world cup

16 February 2010

David Kirk

They should charge more. Â Hotels and B&Bs, your uncle’s Seapoint flat, airlines and taxis and the guys polishing shoes at the airport and garden services mowing lawns should all charge more during the world cup. “But they’re profiteering” you cry! Â Well, yes, in a word. But if the incredible expense of building stadia in the…
Read more: Why hotels should charge high prices during soccer world cup
book reviews, competition, creating value, economics

The Taxi and the Tea Party

11 September 2009

David Kirk

The Taxi It’s fair to say the South African taxi industry isn’t besotted with the Bus Rapid Transport (BRT) system. It’s understandable too. No matter what assurances are provided around newly jobless taxi drivers being placed within BRT, the reality is that a more efficient service with larger vehicles will need fewer drivers. It’s also…
Read more: The Taxi and the Tea Party
competition, creating value, data analysis, distribution, economics, marketing, measurement, news

How to spot competition

6 March 2009

David Kirk

photo credit: richardmasoner It’s been widely reported that the Competition Commission has been proving an alledged bicycle cartel. Retailers alledgedly agreed to increase prices to improve margins. This is not a strongly competitive market, which makes it quite an attractive market and good margins and profits should be available. photo credit: shareski VodacomÂ and Cell…
Read more: How to spot competition
competition, creating value, currency risk, distribution, economics, news

Chavez – economic terrorist

1 March 2009

David Kirk

photo credit: pablo/T Chavez is promising to take over rice processing plants in Venezuela because they have been refusing to sell rice at the price set by government. Hyperinflation is starting to show it’s head, as a function of government policies around money supply. The article I referenced claimed that that is the reason for…
Read more: Chavez – economic terrorist
competition, creating value, customer value, economics, insight, market risk, marketing, measurement, news, optimisation

Profit margins on ice

19 February 2009

David Kirk

Profit margins are being squeezed by decreased spending power of consumers. That is true, but it is also not the full story. Competitive pressures, buyer and supplier power dictate sustainable margins in the medium to long term. photo credit: abooth202 Fin24.com has a story this morning around Shoprite’s results and pricing strategy going forward. The…
Read more: Profit margins on ice

About David Kirk

Featured Posts

The “Indemnity Trap”: Why Outdated Legal Models are Deferring the Promise of Parametric Insurance
by David Kirk
Parametric insurance is often marketed as the “clean” alternative to traditional risk transfer. The pitch is compelling: if a hurricane hits a specific GPS coordinate… Read more: The “Indemnity Trap”: Why Outdated Legal Models are Deferring the Promise of Parametric Insurance
The Complexities of Comparing SCR Cover Ratios Across Insurers
by David Kirk
In the insurance industry, we often use Solvency Capital Requirement (SCR) cover ratios as a key metric for comparing insurers’ financial strength. While these ratios… Read more: The Complexities of Comparing SCR Cover Ratios Across Insurers
One answer could be pet insurance
by David Kirk
I firmly believe major demographics shifts are going to have massive social, political, economic, financial market and commercial impacts in the coming decades. The balance… Read more: One answer could be pet insurance
A piece of the failure puzzle – decreasing insurer failure rates through Skilled Person Reviews
by David Kirk
Every failure hits policyholders’ savings or cover, impact their lives and their livelihoods. They destroys shareholder value and decrease confidence in the entire financial sector.… Read more: A piece of the failure puzzle – decreasing insurer failure rates through Skilled Person Reviews
How and why insurers fail
by David Kirk
I’ve been updating my presentation from 2021 on “How and Why Insurers Fail”. I now estimate the annual failure rate (or at least getting into… Read more: How and why insurers fail
The hidden dangers of opinion shopping and trusting good news.
by David Kirk
I had a recent discussion on the value of getting a second opinion. There’s the old line that “if you want five opinions, ask three… Read more: The hidden dangers of opinion shopping and trusting good news.
40,000
by David Kirk
40,000. That’s the ballpark figure I usually work with as the minimum number of micro insurance policies required for scale. The expenses of running even… Read more: 40,000

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