Digital strategy and business plan for the InsurTech arm of an international specialist insurance broker.
Our client had made progress in developing innovative data and tech products and services to disrupt insurance brokering.
However, the extent and increased speed and scale of investments by competitors, carriers, full-stack insurers and large tech companies suggested there was a wide-scale appreciation of the opportunities to disrupt the insurance industry presented by the InsurTech solutions.
Our client was engaged in a race, where much of the value would go to the competitors able to develop and deploy the required capabilities at scale the quickest.
The main question for this business plan was: how aggressively to pursue their goals?
We analysed the Insurtech market, business environment and competition and filtered and prioritized a list of product and service ideas. This led us to focus the strategy on 3 main growth levers: data mastery, marketplace software and an InsurTech incubator. We then wrote a business plan that described how to create these capabilities, including a projection of the investment required to achieve their medium-term goals of doubling organic revenue growth, doubling revenue per employee and doubling EBITDA.
The resulting strategy and business plan showed how the Insurtech business could be self-funding with a positive cash flow in 18 months. This plan secured the necessary funding. The IRR was projected to be ~60% over 3 years
To achieve those results, we identified areas of support that were necessary from the main firm:
Active support across the business for data and technology initiatives
Active support for the digital marketing initiative
Changes to be made in the Operating Entities
We needed the commitment of the business – including considering the inclusion of relevant KPIs into performance review plans for senior staff – to implement the changes required to deliver the projected benefits.