The product analysis of a German-based insurance company to promote its latest offering and build a strong foothold in the segment.

A prominent German insurance company that started as a joint venture recently introduced mobile phone insurance in its product portfolio. However, it faced challenges owing to the highly competitive product landscape. The product was also failing to meet the user’s expectations. The company leadership sought the services of Research Nester consultants to work out an in-depth product analysis, to increase its demand and sales.

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An overview:

1

The company is a 53:47 joint venture firm between a German insurance provider and an Indian bank, and profits and losses are distributed as per the pre-decided agreement.

2

In the initial years of its incorporation, the company was focused on providing insurance for marine and accident to be sold in Germany and India only.

3

Gradually it expanded its operations to provide policies globally covering health, automobile, disability, property, and life.

4

In 2017, the company launched its mobile phone insurance product offering. It included worldwide coverage for theft, losing the phone, and accidental screen damage, provided for brand new phones, and also for old or used phones.

5

The ideal plan is for 12 months and post-claim approval, the repair costs can be reimbursed as per the respective amount insured.

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However, the product offering did not meet the market expectations. The highly competitive scenario with pricing disruptions led to poor sales.

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The insurance company turned to RNPL consultants for re-evaluating the product strategy and its marketing to effectively promote the product.

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The Story

The German multinational financial services company was incorporated in 2000, as a joint venture between a German and an Indian BFSI company. Till 2008 it was a prominent maritime insurer in Germany and India when it expanded its operations to provide health, fire, life, disability, and other security covers in other parts of Europe and Asia. In 2012, it opened its first international branch office in the U.S. The company’s growth was marked by its strong market position as a reliable and affordable insurance company with positive experiences of customers and consistent performance ratings. In 2017, the company in a move to expand its product offerings ventured into the mobile phone insurance segment. However, with the product landscape being highly competitive, and with many players offering similar coverage options, the client company found it difficult to market its product. The sales were very restricted. Apart from that, the integration of insurance systems with mobile platforms required seamless data exchange, secure payment processing, and synchronization between insurance backend systems and mobile applications. This again posed a big challenge as the customer experience was rated as below average. The company witnessed disappointing sales and reached out to Research Nester in early 2019 to provide an analysis of the product to enhance its popularity and demand.

The Solution:

The company was facing low growth in its latest offering owing to the availability of similar products at competitive prices and better efficiency. As observed by Research Nester analysts, the mobile device insurance segment majorly required product differentiation and unique selling points. RNPL consultants offered a customized solution in the form of the Mobile Insurance Market that provided a thorough analysis of the opportunities, and current and emerging trends in the market. Apart from that, they made an exhaustive study of the product landscape and the company’s offering to provide the following improvisations-

  • Strategies to create awareness for the product and get customer attention.
  • Identifying unique selling points to attract customers such as comprehensive coverage, affordable premiums, fast claims processing, and other additional benefits.
  • Establishing partnerships with mobile phone manufacturers and retailers.
  • Implementing the right pricing and underwriting strategy considering the different phone models, theft, or damage probabilities. It can also take into account the competitive premiums and historical data to accurately price the coverage.
  • Adopting robust fraudulent claims prevention measures.
  • Enhancing customer satisfaction by prompt handling of claims, quick processing, resolution, and final settlement of claims.
  • Providing efficient customer service for a better user experience.

The company implemented the above measures and found a significant improvement in sales and growth in turnover.

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Results

When the company introduced the mobile device insurance policy coverage in the market in January 2017, it failed to grab a distinct market share. The sales were valued at ~USD 1.2 million by the end of the same year. The sales went further down in 2018 to reach ~ USD 45000. The implementation of strategies suggested by RNPL consultants brought about a huge reform in the way the product was perceived. By 2020, the sales started climbing up, to reach ~USD 2 million. The company was gradually positioning itself as a major mobile phone insurer in 2021, with sales valued at ~USD 6 million. In 2022, the company recorded the highest turnover with sales reaching ~USD 12 million. The company had managed to take up the lion’s share of the product segment and was basking in the glory of loyal customers and a strong market position both in the Asian and European markets. Presently, the company is working closely and collaborating with American mobile phone manufacturers to tap the US market too, using the same strategies advised by RNPL consultants.

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Swara Keni

Head- Global Business Development

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