Growth opportunities for Italian branch of a global insurance company

The insurance market in Italy is in the midst of significant change. The Bersani decree, removing the exclusive mandate for insurance agents, creates conditions for a reshaping of the distribution landscape. Additionally, deregulation, such as the European Payment Services Directory, now allows retailers and other operators to enter the financial services industry, including credit cards, payments, consumer lending, and insurance.

The insurance company wanted to take advantage of this market unrest to identify and implement strategic growth initiatives — especially opportunities for new sales channels, with a particular focus on the Life & Health business.

Challenge
To ensure that all viable growth opportunities were identified and rigorously evaluated, the insurance company engaged A.T. Kearney. In particular, the company aimed to improve its ongoing business stability through better control over distribution channels and by enhancing its direct relationship with customers.

The company also wanted to build on its international expertise, taking advantage of its best practices in other country markets. At the same time, they were expanding their capabilities for future growth in additional international markets.

Approach
The project approach was based both on deep market/competitive analyses and on intense contacts and interactions with different players in the market: insurance agents and brokers, and non-financial players.

The growth project comprised three comprehensive phases:

Identified a large set of potential opportunities, for both direct and indirect channels, based on an analysis of market dynamics
Analyzed each potential opportunity in terms of attractiveness (e.g., market potential, model sustainability), ease of implementation (e.g., investment, resource needs and gaps), and product development requirements
Developed detailed plans for two prioritized opportunities, including the business model, business plan, and action plan

Results
As a result of the growth project, the insurance company now has detailed go-forward plans for two strategic initiatives. One initiative targets two growing customer segments, each with specific financial needs. The other initiative is designed for a spectrum of new delivery channels, including a distribution network of financial and non-financial business partners.

In addition, the team moved the project towards full implementation by identifying potential distribution channel partners, along with detailed action plans. Implementation of all initiatives has successfully started.