Stress test, regulation and options for action

Insurance

Initial situation and project goal

A large foreign insurance company is pursuing the goal of positioning itself as a leading international specialist for life insurances and pension solutions in Germany. For this purpose, the company plans to stabilise the turnover generated particularly through its broker business and to create a foundation for further growth.

Based on the fact that there are far-reaching regulatory interventions – in particular on compensation, advisory services, qualification of brokers and products – there was a need to develop strategic objectives for the various sales channels in order to realise the forecasted growth. Within the context of the pending regulation, these needed to be evaluated in a scenario-based manner.

 

Project steps

The most important project milestones include:

  • Identification and description of relevant international and national regulatory initiatives for the German insurance industry and derivation of interdependencies
  • Examination of the effects of regulation in other European countries
  • Derivation of regulatory scenarios for the various regulatory fields
  • Quantification of the effects of regulatory initiatives on the overall regulatory initiatives on the overall broker volume, the significance of the sales channel, the number of brokers and the average salary of brokers
  • Quantification of the effect of the new business and the insurer's margin ("stress test") on the basis of details provided by networked brokers in the relevant broker segment as well as the determination of economic viability               
  • Calculation of targeted new business under consideration of corporate planning as well as derivation of new business gaps in the wake of regulatory interventions
  • Development of actions for the strategic objectives and derivation of strategic initiatives, tactical projects and operational measures

 

Project results and outlook

  • Regulatory initiatives with relevance for the German insurance industry
  • Lessons learned and results of regulatory decisions made in other European countries
  • Regulatory scenarios along the various regulatory fields
  • Scenario-based view of the insurance markets in Germany with a focus on the sales structures and brokers
  • Prognosis of the effects of regulation on the insurers, in particular on the individual broker segments and product groups as well as the new business volume and margin
  • Target new business and resulting new business gap
  • Options for actions for the strategic objectives as well as initiatives, projects and measures

 

Press

IT füllt ihre Zukunftsrolle noch nicht aus
June 2017