英格蘭市場營銷留學生英語dissertation代寫-Pure General Insurance Case Study (PGI)

 

The business was founded in 1922 when two friends Andy Purfect and Bill Reeves as Pure General Insurance. During the 1930s and 1940s the business specialised in the new member groups which were beginning to set up such as the Government services Motoring Club. Bill’s wife was a local government employee and was a member of the club before they married. She started the partnership down this road when she and a few of the fellow members asked Bill to arrange motor insurance for them and provide the club with an income by sharing the commission.

 

As a broker, PGI get a 25% commission for each policy they place with an insurance writer. Once the seed had been sown, Bill concentrated his efforts in signing up other “affinity” groups and eventually moved into the larger trade union groups offering the full range of motor insurance policies to group member. The groups were happy to make these arrangements, as they were able to enjoy another income stream, in addition to their subscriptions, by sharing in the commission that PGI earned. Affinity groups received 10% of the insurance premium leaving PGI with 15%.

該企業始建于1922年，當兩個朋友安迪Purfect和比爾·里夫斯純保險。在20世紀30年代和40年代，業務專業組，分別開始著手建立如政府服務駕駛俱樂部中的新成員。比爾的妻子是一個當地政府雇員，在他們結婚之前，俱樂部的成員。沿著這條道路時她開始了合作伙伴關系，她和幾個老鄉成員提出條例草案，安排汽車保險，俱樂部為他們提供與分享傭金收入。

 

作為一個經紀人， PGI得到25％的傭金，每一個政策，他們將與保險作家。一旦種子已經播下，比爾他的努力集中在訂閱其他的“親和力”的群體，并最終搬進了較大的工會團體提供全方位的汽車保險政策組成員。很高興作出這種安排，因為他們能夠享受另一種收入來源，除了他們的訂閱，分享PGI賺取的傭金。親和組收到保險費離開PGI 15％的10％ 

 

The 1980s were a turbulent time for insurers, especially motor insurance provider with the rise in direct insurers such as Direct Line (DL). DL took the market by storm by introducing the direct insurance concept whereby the consumer was able to go direct to the insurer and cut out the middleman (broker) and get a cheaper deal. In addition DL were able to “cherry pick” the lower risk customers (those who didn’t have many accidents) because they could ask more question and better understand the risk they were taking on when compared to the traditional distribution channel of brokers. Brokers by this time were operating delegated underwriting arrangements. This is where the Insurance Company allows the introducer to commit the insurance company to the risk so long as the risk fells within certain parameters. This delegated underwriting enabled the brokers to operate a panel of insurance companies and offer their customers a competitive price for their particular risk, however the process was not as refined as the one that DL introduced.#p#分頁標題#e#

 

DL in addition to cheery picking the lower risks, were able to put pressure on their competitors by removing the profitable element from their insurance book (insurers set premiums by balancing the costs of settling claims with their operating costs and their desired profit margins) leaving them with lower quality customers who in making more claims increase the operating costs of the insurance company, which filtered down to the customer as increased premiums. This was in stark contrast the Direct Insurers who were lowering premiums as they had lower operating costs, due to less claims, and a centralised operating office without the need for branch offices. These forces sparked the advent of a move to direct insurers by all insurance underwriters and the consumer concept of “shopping around” for the cheapest deal became commonplace. Initially delivery was facilitated by the telephone and in the 2000s moved to the Internet where it was much easier and convenient for consumers to review a number of providers in a short space of time.

 

This switch to direct channels has meant that many brokers have been put out of business as they were unable to compete for main stream motor business with all insurers offering this direct solution, facilitated by the Internet. 

Whilst this was going on, PGI was being squeezed in another direction in that the then Thatcher Government of the 1980’s was confronting the Trade Union movement and dismantling a lot of the trade union sympathetic legislation that the Labour Government of the late 1970s had put in place. In addition to control the raging inflation of the 1970s, the Conservative Government were prepared to allow British workers to be unemployed. Typified in popular music of the time, such as songs like “1 in 10” by the Birmingham group UB40s. Their name refers to the Tax Document workers received when they lost their jobs, a form UB40, and the commonality of being out of work to the extent of one person in ten of the then population. The result of these pressures was that Trade Union movement and membership went in to decline with membership levels falling due to redundancy and lack of union power.

 

Whilst PGI have survived these turbulent times they are still a one product business in that they only offer motor policies. They are beginning to consider expanding out into other insurance ranges, however, whilst motor insurance is a legal requirement for driving motor vehicles on UK roads, other insurance types such as general household insurance was not a legal requirement. 

 

The company has compiled this portfolio of information to enable the new marketing consultant to review the company and evaluate introducing a new home insurance product line.

 

MEMO

 

To Marketing Consultant

From Joe Palmer Marketing Manager#p#分頁標題#e#

 

You were asking at the meeting the other day about what priorities the consumer places on what elements of the decision making process. I promised to look out the research we did eighteen months ago.

 

In fact, the priority they give to things changes depending on whether they are buying for the first time or renewing, after having had some experience of us (this can involve any form of contact –including making a claim). The following are the priorities the research threw up:

 

NEW BUSINESS

Price (cheapest?)

Reputation (affinity relationship seems a strong influencer)

Product

Service Issues

People

 

RENEWAL BUSINESS

Service Issues (empathy with their needs)

Price (value for money)

Product

People

Reputable

Interesting to note that product details comes mid point in both lists and our close ties with affinity groups is still a strong attraction for consumers.

 

The research also showed that consumers want a company that:

- offers service (with a capital “S”)

- Pays claims quickly

- Treats the consumer fairly

- Has a good reputation or is one that they already deal with

 

Hope this helps

 

Memo

 

To: Marketing Consultant

From: Bill Reeves Junior Managing Director

 

The Future Environment

 

Following your request last week for some broad figures on the future environment for PGI, I have looked through several reports on the Industry and relevant Press Articles and noted down various figures below. Without knowing exactly what you want it is difficult to know if I have covered the aspects you were particularly interested in. If I can help you further don’t hesitate to let me know.

 

Best wishes

 

THE FUTURE ENVIRONMENT FOR THE HOUSEHOLD INSURANCE INDUSTRY

 

1 Insurance Market Value

 

Expenditure by UK households on all types of insurance has increased well above inflation (RPI) since 1993. Most of this increase will be due to increased ownership due to the modest increases seen in premiums over this period. Based on the Office of National Statistics data, predictions for UK households (on which average annual expenditure is based) the total annual insurance market value stood at £17,370 million in 2006.#p#分頁標題#e#

 

2 Trends and Assumptions in new Target Markets

 

PGI’s existing affinity groups provide a potential audience of over 5.2million consumers of whom just under 4.5 million are in employment, the rest are retired from their respective industries. Although certain industry sectors have been showing an increase in staffing levels, the current trend of moving labour intensive services to cheaper counties and the announcement by Gordon Brown (the then Chancellor of the Exchequer) at the resent budget to substantially reduce the civil service may have a long term impact on the level of membership of trade unions and other affinity groups.

 

Resent house price inflation is having a positive effect on consumers coupled with the Labour Governments success in getting people back into work, although that may be in lower paid service jobs, coupled with the growing concern for crime, both to the person and to property, and the greenhouse effect on extreme weather conditions, demand for household insurance is buoyant.

 

The current recession and banking liquidity crisis is having an effect on the confidence of consumers and mortgage lending and whilst latest figures suggest a recovery in mortgage lending, it is still significantly down on last year. The level of unemployment is rising having reached 2m, it is significantly pronounced in the youth market place.

 

The traditional process of selling household insurance along side mortgages (we are currently seeing record levels of both lending and new mortgages being granted) will pose an obstacle for us to over come. However the competition between direct insurers in the 1990s has decouple in many consumers minds that the buildings insurance needs to be with the mortgage lender –Direct Lines advertising campaign of paying the lenders £25 transfer charge has been influential here.

 

The Household Policy Market

 

The number of privately owned houses supported by a mortgage is the prime indicator of the number of household insurance policies sold. The recent trend, due to house price inflation is to take out longer and longer loans, which will have a beneficial effect on the market place. As you can see from the following table, the length of mortgages has increased and for the first time is showing a substantial debt in retirement. In addition the second table showing independent households, indicates that the number of household still continues to increase but it is thought that this is mainly due to the increasing divorce rate and the establishment of single parent households. These may not be cash rich and as such have a high need for household insurance but may not be able to afford the upfront premium each year.

 

Table showing the average length of  household mortgage and the average age of the borrower when the mortgage was first taken out.#p#分頁標題#e#

 

1993 1997 2003 2006

Average length of mortgage 23.3 years 27.1years 30.2years 34.1years

Average age of borrower 24.5years 26.3years 27.8years 32.4years

 

With the rising claim trend experienced during the last 20 years, due in part to the increasing incidence of “freak” weather conditions and the rising crime statistics for incidents against property, premiums have been rising year on year for the last 20 years with the average household premium of £370 per year.

 

3. Key competitors in the Market

 

Mills, Sable

Bullring

Blair Patterson

TE Bexley

Cherry Ash

 

Competitive Market Share 2006

 

Number of Households Gross Premium Income £m Average Premium

£

Mills, Sable 6.6% 281.49 297

Bullring 8.0% 300.76 302

Blair Patterson 9.2% 350.46 320

TE Bexley 3.4% 201.34 301

Cherry Ash 6.1% 297.33 288

 

Motor Insurance Portfolio Size and Growth Rates

PGI compared to Competitors

 

Year #p#分頁標題#e#PGI Polices Annual Growth Mills, Sable Annual Growth Blair Patterson Annual Growth Cherry Ash Annual Growth

2001 480,000 120,000

2002 499,000 4% 190,000 58.3% 30,000

2003 510,000 2.2% 245,000 28.9% 85,000 183.3%

2004 519,000 1.8% 290,000 14.3% 56,000 150,000 76.5%

2005 533,000 2.6% 400,000 37.9% 137,000 144.6% 260,000 73.3%

2006 566,000 6.2% 700,000 75.0% 250,000 82.5% #p#分頁標題#e#325,000 25%

 

Comparative Spontaneous Awareness

 

Company PGI Main Affinity groups PGI Secondary Affinity Groups General Public

Mills, Sable 45% 36% 50%

Bullring 46% 33% 51%

Blair Patterson 43% 29% 46%

TE Bexley 40% 26% 42%

Cherry Ash 38% 24% 41%

 

Notes of the Brainstorming Session

 

These are copies of the notes that summaries the main outputs of the brainstorming session that the sales Director organised to identify issues of future importance to PGU’s business. They are not in any particular order.

 

 

- The increase in house ownership particularly buy-to-lets

- The continued cost of commission payments to our sponsors or affinity groups

- The diverse number of ICT systems in PGI, elements of which could impact on our ability to exploit economies of scale

- Increasing supplier-led commoditisation of Motor business

- Possible increase in Insurance premium Tax to help prop up public spending

- Changing customer expectations to easy access and cheaper year on year premiums – especially with the advent of comparison websites such as moneysupermarket.com

- Increasing disloyalty of consumers in shopping around fuelled by consumer representative bodies like Witch?#p#分頁標題#e#

- The need to expand our product range to exploit our customer base

- Low penetration of Affinity group membership

- Single product offering –leading to multiple provider relationships

- The stagnation in affinity group membership

- In ability of affinity groups to provide a meaningful benefit to their members

- The increasing dominance of direct writers, and more specifically Bullring in our own market

- The Aging Population

- Growing number of cash poor single parent households

- House price inflation prising out first time purchasers

- Lapse rates

 

MEMO

 

To Marketing Consultant

From Chris Taylor

Motor Sales

 

Lapse Rates

 

Just a quick note re the above.

 

Our lapse rate for motor is around 12%. Although it has been rising slowly this is still good with an industry average of 28% and Bullring recently announcing a 15% lapse rate and are very proud of it!

 

Hope this helps

 

Qualitative Interview data sheets

 

Interview 1 Male 46yrs

 

Q1 Would you be prepared to buy a household contents policy from a group which you are a member of?

R1 Yes I already get my car insurance from my Trade Union so why not my contents policy

Q2 What would you expect to find in a household contents policy?

R2 Well the contents of my house insured of course! But I would want my portable belongings insured outside of the house in case I lose them or had them stolen, I’d like the kids belongings insured too, especially the eldest while he is at university.

Q3 #p#分頁標題#e#What features do you think are important in a contents policy?

R3 Well it must have accidental insurance cover, and theft, plus fire damage yes and that new for old thing were they give you enough money to buy a new replacement. I don’t want that new thing where they get the product for you –I like to buy my own and anyway I might want to try a different make or model.

Q4 What features do you think are unimportant in a household contents insurance policy?

R4 I don’t know about the legal advise stuff and as I said I don’t like this replacement product thing, nor those robotic voices when you phone the insurer up –very impersonal.

Q5 Where would you find information about household content policies?

R5 I don’t know I’ve never thought about it. Well there is the TV, the news papers and I seem to get a lot of letters about insurance.

 

Interview 2 Female 56yrs

 

Q1 Would you be prepared to buy a household contents policy from a group which you are a member of?

R1 No I get my contents insurance from my mortgage lender, I thought I had to as they gave me the money.

Q2 What would you expect to find in a household contents policy?

R2 I don’t know, how about the obvious, like my contents insured against lose due to fire, accidental damage, theft etc. Oh and outside the house as well.

Q3 What features do you think are important in a contents policy?

R3 Well they must have the obvious bit I just mentioned but I also like the legal expenses insurance and a ‘no forms to be completed’ claims system, you know the ones you phone up on a freephone number.

Q4 What features do you think are unimportant in a household contents insurance policy?

R4 Well I don’t think there is anything which should not be covered. However they do seem to have a growing list of exclusions nowadays.

Q5 Where would you find information about household content policies?#p#分頁標題#e#

R5 Well my bank in the main but they (insurers) seem to be on the TV a lot.

 

Interview 3 Male 23yrs

 

Q1 Would you be prepared to buy a household contents policy from a group which you are a member of?

R1 Yes why not, so long as they are competitively priced.

Q2 What would you expect to find in a household contents policy?

R2 Well, accidental lose cover , the usual fire and theft that’s about it.

Q3 What features do you think are important in a contents policy?

R3 Well they must have accidental lose, theft and fire damage. Also they must have an easy settlement/claim system. Also I like the monthly payment system but with no extra charges my old insurer wanted to charge me interest as if it was a loan.

Q4 What features do you think are unimportant in a household contents insurance policy?

R4 I don’t like all those frills they keep putting in the policy you know, the legal advise and the repair help lines just good old insurance for me. Anyway these thing increase the costs.

Q5 Where would you find information about household content policies?

R5 Well I use an internet broker now but I use to use the local insurance broker in town until he became too expensive. Well I’ve never needed to claim so I looked for an insurer who gave me no-claims discount.

 

Interview 4 Female 23yrs

 

Q1 Would you be prepared to buy a household contents policy from a group which you are a member of?

R1 Well currently I get my contents insurance from the web, the site searches 20 insurance companies for the best deal. I do have to input my requirements though. So if my staff association had a similar arrangement then I would think about it.

Q2 What would you expect to find in a household contents policy?

R2 #p#分頁標題#e#Just Fire and Theft mainly. Just like the basic cover. Don’t want to spend too much money.

Q3 What features do you think are important in a contents policy?

R3 Well fire and theft replacement, I do like the goods replaced as they do now, It saves having to go out and find a replacement myself.

Q4 What features do you think are unimportant in a household contents insurance policy?

R4 Well I don’t like the ‘ware and tear’ reduction or the lack of a no-claims discount

Q5 Where would you find information about household content policies?

R5 The Internet mainly. I just ignore the other stuff, you know the TV, radio, newspapers and the net adverts.

 

Interview 5 Male 63yrs

 

Q1 Would you be prepared to buy a household contents policy from a group which you are a member of?

R1 Yes from my union but I can’t see it from the Train spotting club. What about when I retire though?

Q2 What would you expect to find in a household contents policy?

R2 The usual fire, theft, accidental damage, legal expenses insurance and all those telephone help lines –you know the repair, tradesman-sourcing etc.

Q3 What features do you think are important in a contents policy?

R3 Well, all of them or they wouldn’t be included would they.

Q4 What features do you think are unimportant in a household contents insurance policy?

R4 I’ve never though about it. Well nothing really, except I don’t like those telephone answering systems just give me a person any time

Q5 Where would you find information about household content policies?

R5 Well every ones seems to write nowadays, but Bill my shop steward told me about it.

 

Interview 6 Female 43yrs

 

Q1 Would you be prepared to buy a household contents policy from a group which you are a member of?

R1 No, I like to buy insurance from people who know about insurance, I mean does my trade union know anything about insurance? I don’t think so!

Q2 What would you expect to find in a household contents policy?

R2 Oh just everything covered really, against everything. I do hate those exclusions. Just give me the money when I make a claim. I pay enough for it especially all those years I don’t claim.

Q3 What features do you think are important in a contents policy?

R3 Well, www.ttc-switch.com fire , theft, accidental damage, travel insurance, public liability, legal expenses, help lines, oh, just everything.

Q4 What features do you think are unimportant in a household contents insurance policy?

R4 Oh its all important, but as I said I don’t like the exclusions where they will not pay out and some of the wording of the policy is very difficult to understand, even those with that crystal award for plain English.

Q5 Where would you find information about household content policies?

R5 From my local insurance broker of course he at least looks at a number of providers to find the best deal for me. Saves me having to ring round.

 

PGI Case Questions.

Question 1

 

Q1a 

PGI has conducted a number of interviews to investigate the possibility of introducing a new general insurance policy. The company has asked for your help in analysing this interview data. You are required to carry out a process of data reduction on this interview data using any appropriate method of your choosing (you may wish to consider using the “large sheet of paper” method).