Affinity Insurance Services

Strategic Evaluation of New Business Opportunity

Business Overview – Market Identification

Describe the primary and any secondary target markets for this business segment.
Estimate the total number of prospects available today.
Is this population stable? Predicted growth or decline in next five years?
What prospect information is required to effectively market to this segment/population?
Identify potential sources for obtaining prospect names, addresses and other pertinent information. Estimate cost per name.
How is this population grouped? Are there national, regional or local organizations whose endorsements may carry some weight with this segment? Are there other entities that are influencers or have dominant presence in this space?
What trade publications and shows target this particular segment? Estimate circulations and attendance.
How technically proficient is this population?
How does this market currently buy the product?
Is there anything unique or special about this population that could be used to enhance the marketability of a product to this group?

Define the primary goals for entering this business segment.
Identify the strategies for achieving these goals.
How mature is this business segment?
How stable is the product offering?
Identify key factors for successful launch into this market.
What are potential problem areas that may affect growth of this business segment?
Does this product have the potential to interfere with or cannibalize current markets or relationships? What must be done to prevent this from happening?
What are the foreseen favorable and unfavorable factors likely to influence the business in the future (regulatory issues, competitive trends, short term weaknesses?

Identify competitors in this marketplace.
What are the three main issues in order of importance which are the basis of competition in this business segment (price, coverage, quality, etc.)?
Who are the top 3 competitors that compete in this business segment. Estimate available market that they control.
What strengths can be identified with each competitor above as they compete for this business segment?
What weaknesses can be identified with each of the competitors identified above?
What, if any, competitors have entered this business segment over the last 2 years and have they been successful in gaining market share?
What competitors have exited the marketplace over the last 2 years? Why?
What product and operational strengths do we have in developing and servicing this product?
What product or operational weaknesses will hinder our development and servicing of the product?
What is the proposed value proposition for this new launch? Is there a unique value you expect to bring or do you plan to join the market to take part of the existing share?

What is this product intended to cover?
What are major exclusions to this product?
Must this product be the broadest offered in the market segment?
How important is price in sale of this product?
Are any ancillary coverages to be included in this product?
Will our product design create any gaps with other coverages this universe is reasonably expected to purchase?
How extensive will the application process be?
Describe the ideal application and renewal process.
Is national availability of the product expected?
Who is responsible for claims reporting and handling?
What customer trends are altering product needs?
Are there any competitive trends changing product requirements? If so, what are they?
Will one product sufficiently address the entire market’s needs or does the need for product segmentation exist?

What, if any, market research is required to evaluate this product launch?
What primary and secondary distribution channels will be most appropriate for this market?
What will be the initial testing scenario?
Describe the test market.
When are the most effective times to market to this group? Does seasonality play a role in response?
What are the 4 key points that should be emphasized in the creative execution?
What tone should the marketing communications take?
Develop 3 year projections for new business and renewals.
After five years of implementation, what should the market share goal be? After 10?
What are the estimated marketing costs of implementation?
Has there been any shift in competitive marketing methods in the last 2 years? Any predictions for the future?
Will market segmentation be required as the product matures?
What other products could be effectively cross-sold to this group? Are there bundling opportunities that could effectively reduce distribution costs?

What are our top 3 operational strengths as they relate to this business segment?
What are our top 3 operational challenges as they relate to this business segment?
What customer service support will be required to service this business?
What underwriting support will be required to service this business?
What administrative support will be required to service this business?
What type of system support will be required?
What type of reporting will the carrier require?

Financial Overview