customer value – Twenty Third Floor

Actuarial and Risk, creating value, customer value, distribution, Featured, financial risk, insight, InsurTech, life insurance, marketing, microinsurance, product & pricing

40,000

13 May 2024

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 a micro insurer are not that trivial. For underwritten products within a full life licence? Larger premiums per policy but definitely more complexity. Competition is tougher too. Hyper local brands…
Read more: 40,000
competition, creating value, customer value, distribution, insurance, InsurTech, life insurance

The Challenges of Insurance Distribution

5 April 2024

David Kirk

As the insurance industry evolves, so do the complexities of distribution. When distribution channels don’t perform, it can be hard to just diagnose the problem. Have we stopped doing the right things? Are our competitors getting better? Do we have the right product and is our pricing still right? It’s tempting to chalk it up to…
Read more: The Challenges of Insurance Distribution
competition, complexity, creating value, customer value, distribution, FinTech, hyperselection, insight, insurance, InsurTech

Why isn’t there more micro insurance in South Africa

14 June 2018

David Kirk

After a recent Actuarial Society sessional presentation I gave on micro insurance and the regulatory developments, I was asked why there aren’t more micro insurers operating in South Africa. Here is a slightly paraphrased version of the full question: The larger insurance players seem reluctant to enter the market. Why do you think this market…
Read more: Why isn’t there more micro insurance in South Africa
business tools, creating value, customer value, data analysis, technology

Coffee as the thin edge

21 April 2012

David Kirk

Pick n Pay is starting to gain some useful insights into customer behaviour and purchasing decisions at different stores. They’re using coffee as a key product to better understand who buys what, where and when. They’re tossing out (more likely de-emphaszing) LSMs as a method of categorising customers and moving to more sophisticated measures (including…
Read more: Coffee as the thin edge
Actuarial and Risk, competition, customer value, economics, insurance, legal risk, managing uncertainty, news

Medical Schemes, discrimination and the CPA

7 August 2011

David Kirk

The Consumer Protection Act (CPA) protects consumers from abuse by enforcing fair practices, improved disclosure and added minimum warranties etc, It’s a good piece of legislation, even if at times some aspects of it may result in greater costs than benefits. TimesLive has a story about the alleged noncompliance of medical schemes with the CPA.…
Read more: Medical Schemes, discrimination and the CPA
Actuarial and Risk, creating value, customer value, insight, insurance, life insurance, measurement, New Business Margin on Revenue

Gaining new insight into insurer profitability through New Business Margin on Revenue

21 July 2011

David Kirk

The Value of New Business written by an insurers is a good measure of the value created through sales activity over a certain period. It’s not the easiest number to interpret in terms of profitability though. New Business Margin, which is the Value of New Business (VNB) as a percentage of the Present Value of…
Read more: Gaining new insight into insurer profitability through New Business Margin on Revenue
Actuarial and Risk, customer value, Embedded Value, insight, insurance, life insurance, measurement, New Business Margin on Revenue

New thoughts on renewal rates for Embedded Values

15 July 2011

David Kirk

Embedded Values (EVs) are widely used to measure value for life insurers. In the context of long-term contracts such as individual life, it reflects the value embedded in prudent regulatory provisions (or “actuarial reserves”). For short-term business (group risk, health insurance, health administration, general insurance etc.) it is something different since these lines don’t have…
Read more: New thoughts on renewal rates for Embedded Values
communication, creating value, customer value, insight, news

Who do you trust more than your bank?

8 November 2010

David Kirk

Turns out Australian banks are concerned that their customers have greater confidence and trust in Google and PayPal than in their own institutions. It wasn’t that long ago that financial institutions needed marble-clad offices and multi-decade histories to show that they were serious and were financially stable and could be trusted. Now the organisations that…
Read more: Who do you trust more than your bank?

Twenty Third Floor

Figuring out the future and the now

Category: customer value

40,000

The Challenges of Insurance Distribution

Why isn’t there more micro insurance in South Africa

Coffee as the thin edge

Medical Schemes, discrimination and the CPA

Gaining new insight into insurer profitability through New Business Margin on Revenue

New thoughts on renewal rates for Embedded Values

Who do you trust more than your bank?

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