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MarketStance Performance Insights is a collection of innovative insurance analysis methodologies. Using these techniques, MarketStance conducts individualized analysis for carriers that results in both strategic input for senior management, and execution tools for regional management and field staff.
MarketStance Performance Insights produce
a bottom up, market based assessment of
carrier growth potential that take into
account:
- Current underwriting stance
- Commercial risks marketplace
- Capabilities of currently appointed
agencies, and
- Carrier’s line of business mix.
The result shows how realistic growth potential
plays out geographically. It also establishes
a shared perspective for your organization
that can provide a framework for integrated
SBU and agency planning.
Significantly, Performance Insights also delivers detailed information on appointed agency markets, current performance and potential. MarketStance Performance Insights can help functions from underwriting and marketing to distribution management answer questions critical to success.
Strategic/tactical exhibit (Click to enlarge)
The Process
MarketStance Performance Insights consists
of four components. Each part builds on
the foundation of the parts before it, providing
an increasingly more detailed picture of
growth potential, sweet spots, and how best
to leverage them.
You can only underwrite what you see.
Part A: Underwriting appetite assessment
A majority of carriers have only a generalized
definition of underwriting appetite, a
fact that
- clouds understanding of true potential,
- confuses messages to producers and
the field (impacting application quality),
and
- compromises effective resource allocation
Getting to the right classes
– those that reflect your underwriting
expertise, risk appetite and market
potential – is very important to gaining
the kind of market and operational focus
that yields growth, lower acquisition
costs, and profitability. MarketStance
Performance Insights start here.
- How well does your current appetite
match the mix of potential business
by state? By extension, how well DOES
it support your objectives?
- Are there classes you should consider
writing to round out your potential?
- Are there territories where situational
appetite adjustments are needed?
- How consistent are your current writings
with your stated appetite?
- What insights does this provide?
Through the give and take in this step
of the assessment, MarketStance works
with clients to refine and clarify appetite.
The end result is a crisp definition of
underwriting appetite. This provides the
foundation for lower acquisition costs
and improved application quality by viewing
appetite primarily as what you communicate
to the agency force. This also provides
the impetus for improved productivity
and coordination by becoming the touchstone
by which all lines and functions must
communicate.
Avoid misleading penetration calculations
for a more accurate strategic foundation
Part B: Penetration and Growth Potential
Assessment
By looking at penetration and potential
in the context of only the business you
want to write (by line, by class of business,
by account size), MarketStance provides
a more accurate picture of performance
and potential. Identifying gaps in current
writings by territory, identifying counties
with the greatest potential, by state
– and helping eliminate counties without
potential – helps align goals, plans and
resources to maximize performance.
Penetration and Potential (Click to enlarge)
Understand individual agency size and
position, growth potential and your penetration
within the agency.
Part C: Agency reach and potential
Three important factors drive carrier
growth.
- Market growth
- Growth in agency share of market
- Growth in carrier share of agency
production
MarketStance Performance Insights capture
the impact of all of these to support
better planning and execution. Through
a bottom up, by-agency analysis of appointed
firms, we deconstruct and identify the
growth drivers and quantify the gap between
your objectives and appointed agency production
capacity.
MarketStance Performance Insights provide
carriers with facts on
- The size and geographic extent of
an agency’s market
- The agency’s total production
- The carrier’s own share of agency
production
- The production needed from non-appointed
agencies
The result is a state-by-state agency
production contribution analysis that
- Reveals agencies with significant
room to grow,
- Identifies the best currently appointed
agencies to work with,
- Determines if additional appointments
are needed to achieve objectives and
- Locates and quantifies geographical
and market gaps in current distribution
resources.
Making strategy locally actionable
Detailed information reflecting the
findings from earlier phases of the analysis
provide the locally relevant details that
help field staff translate strategy into
local success. Regional management and
staff are equipped for necessary tasks and
winning with:
- Specifics on state and county potential,
- The classes representing the greatest
opportunity, and
- Details on agency performance and potential
--
- Plus non-appointed agency leads
MarketStance Performance Insights applies
new thinking, fresh techniques and tools
to enable innovative carriers to exercise
more control over their marketplace – and
their futures.
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