XYZ is an organization that offer insurance related services to its customers on motor vehicles. Some recent reports states that the company has underinvested in its technology over last ten years. The project was kicked off as the company has struggled to keep pace with its corresponding competitors due to continuously changing customer requirements and preferences. The report is based on the research of feasibility regarding incorporating the technologies in existing business model of the company to get competitive advantage. Moreover, some discussion is also made on the role of AI and machine learning in the future of insurance industry.
• Implementation of AI and machine learning in the field of insurance will help in managing the behavioural policy pricing of the company.
• It will be easy for the organization to faster the customized claims settlement to make it more effective to pay and settle claims following an accident.
• The customer experience & coverage personalization will increase for the insurance organization after the usage off AI and machine learning.
Motivation of business
• To maintain competitive edge by attracting maximum customer base towards the insurance services of the organization.
• To provide high quality services to the customer as per changing market trends in best offers.
Business model canvas
• Key partners: This is the most promising section of the model that provide a clear idea about different existing business partners of the organization.
• Key activities: This section basically include the strategies that are required by the organization to deliver its proposition in a better way.
• Value proposition: This section includes what’s compelling about the proposition and the fact that why the customers should buy the products & services of specific organization.
• Customer relationship: This section helps in demonstrating the way how the organization can interact with its customers throughout its journey.
• Customer segment: This section will include the customers of the organization, their thinking and emotions towards the organization and corresponding services.
• Key resources: This section of the model defines the number of unique strategic assets that are necessary for the success of the organization.
• Channels: This section include the ways how these finalized propositions promoted, sold and delivered along with their proper working.
• Cost structure: This section states the major cost drivers of the organization that directly linked with their revenue.
• Revenue stream: This section includes the fact that how does the business can earn revenue from the settled-up value propositions.
Value and value chains of the organization
Following section include the description about insurance organization’s value chain that specifies the shortcomings as well as positive aspects of the organization. The working of this value chain is categorized into two sub-sections i.e. Primary and secondary activities.
• Operations of the organization that creates value and increase organizational revenue.
• Inbound logistics that include processes and activities related to receiving, storing and distributing inputs internally.
• Outbound logistics include the activities related to product & service delivery to the end customers of the organization.
• Marketing & Sales include different strategies related with the promotion of existing services of the organization.
• Other services that relates with the activities necessary for the maintenance of product value & customer services.
Secondary & support activities
• Human resources management states how well a company can recruit, hire, train and motivate his employees to get excellent outcomes at the end.
• Technological development in an organization related with increased number of customers and organization’s brand value.
• Procurement include the idea about what the organization does to get the resources that it needs to operate.
• Infrastructure section include the support systems of the organization and the functions that are necessary to maintain its daily operations.