There are many reasons insurance schemes have been established in the past. Sometimes they are to facilitate the sale of additional vehicles, sometimes to drive aftersales volume, and sometimes for purely commercial reasons. But as time goes on and the social, legal and technical environment changes, what were once very effective insurance schemes can become less so, and sometimes cease to deliver their intended objectives altogether.
We are able draw on our wide skill set to review existing insurance schemes and make recommendations as to how to improve their performance. Some examples of the areas we would focus on are; -
Legal – have the regulations changed, do the processes in place still comply, are each of the entities involved protected against claims such as mis-selling?
Structural – are the right parties involved to ensure the scheme runs efficiently. Are there additional parties involved that take margin without adding value, are there parties missing that could contribute to the success of the scheme?
Sales process – is the product offered at the right time, in the right way and by competent staff? The ways customers expect to interact is changing, digital channels and social media use is normal, does the schemes sales process meet these expectations?
Pricing – at its simplest pricing is frequency (how often something happens) multiplied by Severity (how much on average it costs) + a margin to cover expenses, capital and the required return. But each of these elements brings its own complications that often only another insurer is able to evaluate. Are the right procurement processes in place, are recoveries maximised, what reserving approach is in place? All these can have a significant effect on the ultimate policy cost.
Value chain – put simply, are all possible touch points with Toyota being utilised? For motor and warranty schemes are Toyota genuine parts being used? For financial products are customers being offered easy ways to keep their existing vehicle, or even buy a new Toyota?
There are many other ways we can help, if your market has an existing scheme and you think it needs reviewing you can contact us here.