CHAPTER 1 – INTRODUCTION A. COMPANY PROFILE Standard Insurance Co., Inc.

is a Philippine non-life insurance company with a license to market all types of non-life insurance lines. Providing over 49 years of service, Standard Insurance is the leader in motor car insurance in the Philippines and one of the strongest in property insurance after its acquisition of Zurich General Insurance Philippines in late 2003. The Company ranks 4th in terms of gross premiums, 3rd in terms of net income and 2nd in terms of capitalization. Its retail operations, primarily motor car insurance, is the most extensive and the most advanced in the industry with 43 computerized full service branches nationwide with underwriting and claims servicing capabilities, more than 200 car-dealer tie-ups nationwide, and its own technical personnel. These technical personnel are engineers and trained mechanics who perform car repair estimates supported by the Company's own computerized parts database for all major models of popular brand vehicles. In the industry, it has the quickest turnaround time with repairs in the car dealership shops and the only one with its own call center to support its retail operations. In the meantime, Standard Insurance has adopted the Zurich practices in risk engineering, underwriting and industrial claims processing complemented with an in-house adjusters team. The Company's property, marine and liability insurance, as well as catastrophe (CAT) cover are supported by superior reinsurance facilities procured from the London and Singapore markets from international reinsurers with the lead rated by S&P at AAA and the rest of the panel at no less than A-. These facilities are under the excess of loss reinsurance treaties with its property and CAT covers having the highest capacities in the industry. Its risk engineering process includes the use of Geographical Information System (GIS) where mapping of property risks linked to the online system is made against pertinent CAT hazard maps such as fault lines, liquefaction, and ground shaking and flooding. The Insure/90, the Company's real-time general insurance system complemented by its own IT department, was carried over from Zurich General Philippines and is currently in use by corporate marketing and some Metro Manila branches. The rollout and shifting to the I-90 for the rest of the branches is projected to be completed towards the end of 2007. The Company is accredited by most of the major banks and financial institutions. Its ISO certification for quality management systems received in 1998 was upgraded to an ISO 9001:2000 in October, 2003 and has been maintained since then.

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The Company has a product mix of 61:39 on the average, with motorcar accounting for the major part of its portfolio and the balance in non-motor insurance, primarily property insurance. The retail motorcar insurance is basically generated by the branches and car dealer tie-ups under the Retail Group while the large corporate motorcar fleet accounts such as the San Miguel Group, Coca-Cola, Pepsi-Cola, McDonalds, Smart Telecommunications, Globe Telecoms and Pfizer are generated by the Corporate Marketing Group. As a result of its efficient systems in underwriting, claims, IT and accounting for its retail operations, the Company's loss ratio in motor car insurance has been the lowest among the major players. In the meantime, around 42% of the Company's property insurance is generated from the International Program Business (IPB) which is reinsured with ZFS under its cooperative partnership with the latter, such as those of the Philippine operations of Nestle, Holmic Cement, McDonalds and Merck. The remaining property insurance portfolio is generated from the open market and is reinsured under the Company's reinsurance treaties with its highly rated reinsurers. Some of these property accounts where the Company is the lead insurer include those of; a leading telecom company, a leading realty company with its shopping malls, and a leading international hotel chain. A majority of the property insurance for both the IPB and the open market have been coursed through the top insurance international brokers. The prudent underwriting and risk engineering practices of the Company have resulted in a quality portfolio which could be generally classified as semi-prime to prime risks. In the latter part of 2004, the Company launched its insurance product for cellular phones under the brand "TXT2PROTECT, eStandard Cell phone Insurance". This was after nearly two years of product research and development with the design of a dedicated and highly computerized system in underwriting, claims (including anti-fraud) and reporting. The system includes linkages to the leading telecom companies. The product has also been added as a value service through an automatic insurance cover for a high-end post-paid plan of one of the telecom companies. Similar to the motor fleet accounts, wholesale cell phone insurance has been made available to corporate clients such as the large drug companies. The latest innovation of the cell phone insurance product was the "Txt2protect Pre-paid Card" which became a practical and convenient solution for premium payments and registration by clients anytime, anywhere. Similar to the telecoms pre-paid card where subscribers scratch the pre-paid card & pin numbers and send an SMS message to the dedicated network or mobile phone number, the "Txt2protect Pre-paid Card" works the same way. Since Text2protect pre-paid cards are distributed through the business centers and the retail distributors of Smart Communications' prepaid load, the "Txt2protect Pre-paid Card" is thus made available through a wider channel of 2

distribution 24-hours a day. More importantly, evolving from servicing the low-risk corporate clientele to a very retail and higher risk consumer clientele, its system remains to be effective in maintaining comfortable loss ratios, vis-a-vis, efficient claims processing. Standard Insurance has a manpower complement of more than 900 nationwide. Led by a highly professional management team, whose expertise, discipline and technology come from both the banking and insurance sectors, complemented by the global expertise from the Zurich Group, the Company in the last decade has been very HRD centered. It has consistently instilled on its personnel a quality culture of professionalism and integrity as integral to their career development. The Company is 60% owned by Lourdes T. Echauz Holdings, Inc. a holding firm with a net worth amounting to Php825 million as of December 2006.The remaining 40% is owned by CEU Holdings, Inc.1

CHAPTER 2 - RESEARCH DESIGN AND METHODOLOGY
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http://www.standard-insurance.com/profile.shtml

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has a consolidated Balance sheet for the operation of the company and its business.. The motor insurance has no balance sheet because Standard Insurance Co.The researcher was able to acquire data from the following sources: Primary Data Primary internal data was gathered through the website of the Standard Insurance Co. It includes the company background and product information. The information includes economic trends in insurance business and its major competitor’s information. This information includes external factors that affect the industry. Inc. Inc. CHAPTER 3 – VISION AND MISSION STATEMENT 4 . Inc. The news magazine of the company includes their press releases and updates in Non-life insurance. market growth ranking positions of all non-life insurance company in the Philippine market. Secondary Data Secondary external and internal data was gathered through the readings from the internet.. This financial data gathered are limited to the financial statement of years 2004. Limitations The Strategic Management Paper is limited to study and analysis of motor insurance which the Standard Insurance Co. 2005 and 2006. The Annual Report of 2006 and financial statements from SEC explicates the company’s financial performance for the last three years. biggest line of the business when it comes to non-life insurance. market size. Primary external data was congregated from the website of the Insurance Commission.

2 Mission Statement • To instill a quality culture that promotes the values of professionalism. and through integrity. teamwork and productivity. Inc. • To maintain profitability and other financial targets and sustain competitiveness of the company in the non-life insurance business. • To promote employees' continuous professional and personal development.standard-insurance. is committed to continuously improve the quality of service to the insuring public by raising the standard of competency and professionalism.. discipline. To recruit and retain competent people committed to perform at their best in delivering quality service to our customers. Quality Management Principles • • • 2 Customer Focus Leadership Involvement Of People http://www. VISION AND MISSION STATEMENT Standard Insurance Co.A. integrity.html 5 .com/new_site2/quality_policy. • • To consistently give our customers value for their money.

Proposed Mission Statement: • To instill a quality culture that promotes the values of professionalism. The researcher will add mission statements to address the dilemma. posters. and through integrity. Inc. news magazines and company gatherings. as to be recognized for the commonality of interests in having the standard of competency and professionalism. their purpose and its principles in doing business. Inc.. discipline. is committed to continuously improve the quality of service to the insuring public by raising the standard of competency and professionalism. 2006 until October 08. 6 . Proposed Vision Statement: Standard Insurance Co. 2009. This vision statement illustrates the long term goal of Standard Insurance Co. The mission statement portrays the philosophy. teamwork and productivity. business meetings.• • • • • Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationship Analysis: The company is still in the state of improving the quality of service after receiving the ISO 9001:2000 that was received last October 09. This formal statement is communicated to all levels of the organization through e-mails.

• To provide professional Insurance and Risk Management services with the highest sense of integrity to all our customers".• To maintain profitability and other financial targets and sustain competitiveness of the company in the non-life insurance business. we will spread safety and security to all around us. • • To promote employees' continuous professional and personal development To encourage employees in obtaining highest insurance qualifications to give us the leading edge in technical insurance expertise for the benefit of our clients. • • To consistently give our customers value for their money By providing customers with the highest quality products and services. Proposed Core Values: • • • • • • • Customer Focus Leadership Involvement Of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making 7 . • To recruit and retain competent people committed to perform at their best in delivering quality service to our customers. • While demonstrating responsible management as a good corporate citizen. we will make a positive contribute to society.

Self-concept. The core values will be the guiding principle for the employees support the organization. products. The additional proposed mission statements above clearly states the majority on how to improve their product line.• • Mutually Beneficial Supplier Relationship Respond to Social Sentiment Analysis of the proposed vision and mission statement: There is no change in the vision statement of the company because the idea of improving quality service is needed in attaining as the leading provider in insurance industry. Cultural and Demographic Environment The Philippines is a member of the Association of South East Asian Nations (ASEAN). practicing good citizenship and the need for competent employees in order to achieve quality service for insuring public. services and values to the customers. technology. GENERAL ENVIRONMENT a.5 million units (1996. As been discussed in the Strategic Management textbook of Fred R. a regional trading block with combined annual vehicle sales of 1. David. pre financial 8 . CHAPTER 4 – ENVIRONMENTAL ANALYSIS I. The researcher decided to include respond to social sentiment because it will help to build company’s public image as being socially responsible through responsible management. market. concern for growth and concern for employees. Social. a good mission statement clearly states the important components which are customers.

increasing from 76. The Philippines' vehicle market is approximately 55 percent passenger vehicles and 45 percent commercial vehicles. vehicle exports to the Philippines were down 55 percent.internationaltradecommision. Singapore and Vietnam.org/wiki/Global_warming 9 . For 1998. 71. Malaysia was the largest.5 percent. then the Philippines and Indonesia (vehicle sales for the entire ASEAN market were down 73 percent compared to the pre crisis levels of 1996.) Before the beginning of the current economic crisis. According to International Trade Commission (ITC) data. U. Thailand was the largest automotive market within the ten-nation ASEAN. for the full year 1998.7 million in 2040. Precipitation has increased percent across the world's continents in the last century. Sales are not forecast to recover to 1997 levels until 2001.) Sales in 1996 were 162. The Philippines' 1995 unit vehicle sales reached just over 128. down 11 percent from 1996. In 1997 motor vehicle sales in the Philippines were 144.000.435 units. and then the Philippines. Laos. followed by Thailand. Cambodia.4 Population The Philippine population would continue to grow. to 80. according to the 3 4 www.5 million. Burma (Myanmar). All other manufacturers hold the remainder. recent experiences of unusual catastrophes have put underwriters on the alert and suggest monitoring and prudent underwriting is required.com http://en. as of the latest population census conducted in May 2000. Japanese manufacturers dominate this market with over 80 percent market share.231 compared to 1997.000 commercial vehicles. vehicle sales were down 44.wikipedia.crises.000 passenger vehicles and 57.) The other ASEAN nations include Brunei Darussalam. to 141. from $50 million to $23 million.3 Environment – Global Warming Global temperatures are rising.000 units (approx. In 1998. The Philippines has been hard hit by the economic crises in South East Asia.S. Worldwide have risen by some 15-20 cm (6-8 inches) in the Although there are still some scientific uncertainties around issue of global warming. with Indonesia ranking second in the group. followed by Malaysia. compared to 1997. while Korean manufacturers hold 15 percent.

This means that 65 million people would be added to the nation's population between 2000 and 2040. CALABARZON would have 11. 11. and by year 2040. 4.3 percent of the Filipinos would be 65 and over by year 2010. Meanwhile. 23.7 million by year 2040.34 percent during the 1990-2000 period to around 1. MIMAROPA would remain as the fastest growing region.gov. and Central Luzon. 5 http://www.1 percent. The nation's population would also become older as it is projected that child-bearing rate by women in the country will continue to decline and the survival rates of all age groups will improve. an increase of 25.7 percent of them would be in the same age group. Meanwhile. By 2010. The total family expenditure was approximately P2. which is a span of 40 years. In 2010.44 trillion.0 million.Medium Series of the 2000 Census-based population projections. The population is projected to grow by 1.0 percent and by 2040.9 million people.5 Income The total annual family income in 2006 was estimated at P 2.7 percent over the 2003 estimate of P2.5 million.6 million.99 trillion indicating an increase of 22.56 trillion. even if the average annual growth rate is projected to drastically decline from 2. from 85.6 percent in 2005-2010 and 1.0 million in 2010. surpassing the NCR which currently has the largest population.6 percent in 20352040.census. the age group 0-14 accounted for 35.04 trillion (Table 1). would have 15. as it is expected to have an annual growth rate of 2.0 percent of the nation's total population. this age group would comprise 33. CALABARZON would have 18. By 2040. Among the regions.ph/data/pressrelease/2006/pr0620tx. by then the second largest region. CALABARZON is projected to have the largest population by 2010. In 2005.0 percent during the 2030-2040 period.3 million in 2005 to 94.7 percent over the 2003 estimate of P2.95 percent in the 2005-2010 periods. 9. Cordillera Administrative Region would continue to have the smallest population with 2.html 10 . while the NCR.

The average annual income of the bottom 30 percent of families (or the lowest three income deciles combined) increased by around P8 thousand. while it was 20 times that of the first deciles in 2003 (Table 2a). The gap in family income between the families belonging to the tenth deciles and those in the first deciles had narrowed slightly. Also.4605 (Table 1).56 trillion) would be valued at P2.5 percent over the three-year period. the total family income of the tenth deciles was about 19 times that of the first deciles.9 percent in 2006. Income deciles are the distribution of families into ten groups in terms of annual family income. the total family expenditure in 2006 (P2. For all families. the average annual income of Filipino families was estimated at P172 thousand. the average family income decreased by 2.1 percent between 2003 and 2006.4564 in 2006. the 2003 estimate was P24 thousand per family. total family income in 2006 (P2. In real terms. or by 18. the average annual expenditure of families increased from P124 thousand in 2003 to P147 thousand in 2006. which is lower than the 2003 average savings of P24 thousand per family (Table 1). The Gini coefficient provides a measure of income 11 . this average ranged from P32 thousand for the first income docile (or lowest income group) to P617 thousand for the tenth income deciles (highest income group) (Table 2b). Adjusting for the inflation between 2003 and 2006. The Gini coefficient was estimated at 0.2 percent higher than the 2003 estimated average of P148 thousand.50 trillion at 2003 prices. the increase was P24 thousand (Table 2a). From 2003 to 2006. The 2006 average annual income (P172 thousand) is 16. Across income deciles.3 percent in 2003 to 35.In 2006.4 percent.8 percent while average family expenditure decreased by 0. the 2006 real average savings by families is equivalent to P21 thousand at 2003 prices. The share to the total income of families belonging to the tenth deciles exhibited a slight decrease. slightly lower than the 2003 ratio of 0. The first deciles have the lowest income and tenth deciles have the highest income. the total income of families increased slightly by 2.6 percent while the total expenditure increased by 5. In 2006. that of the upper 70 percent of families. The income distribution changed slightly from 2003 to 2006.99 trillion) would be valued at P2.14 trillion at 2003 prices. by some P31 thousand. These numbers translate into average savings in 2006 of some P25 thousand per family. Likewise. annual income in all deciles increased. from 36. Thus. These savings came mainly from the tenth income deciles with P156 thousand per family on the average in 2006 (Table 2a). Meanwhile.

inequality within a population. compared to P60 in 2003.7%).5% to 0. while it was 60 percent in 2003. In 2006.html 12 . A Gini coefficient ranges from 0 to 1.0%) and house maintenance and minor repair (0. there was a decrease in the shares of other expenditure items like tobacco (2. This means that for every P100 spent by this group in 2006.census. with 0 indicating perfect income equality among families. Consequently. footwear and other wear (2.2%) (Table 3).gov. P59 went to food. The spending pattern of Filipino families particularly among those in the bottom 30 percent income group continued to slide towards less spending on food.5% to 2.xxx6 Conclusion: Based on the analysis above.0% to 1. 59 percent of all expenditures by this group were on food. population and import of cars in the Philippines are continuously growing so the demand for car insurance will be increasing 6 http://www. clothing. Registered car. and 1 indicating absolute income inequality.ph/data/pressrelease/2007/ie06tx.

Table 1. Total Number of Famil           and Gini Coefficient: 2006 Selected Indicators ------------------------------------------ Philippines Number of families (in thousands Gini Coefficient 13 .

E xpe            by Income Decile: 200 | Income Decile/ 2006 (In billi |------------ Income G roup | Income -------------------------------------P hilippines F irst D ecile 2.992 56 14 .T able 2a. T otal Income.

T able 2b.            Incom e D ec ile: 2006 | Incom e D ec ile/ Incom e G roup 2006 (In th |---------- | Inc om -----------------------------------P hilippines 172 15 . A verage Incom e.

2 8.0 1.1 39.2 1.7 9.2 0.4 2.2 0.6 1.1 0.6 2.1 2. Percent Distribution of Family Expenditure by Expenditure Item for Bottom 30 Percent and Upper 70 Percent Income Group: 2006 and 2003 | 2006 | 2003 |----------------------------------------------------------Major Expenditure Items | All Income | Bottom | Upper | All Income | Bottom | Upper | Groups | 30% | 70% | Groups | 30% | 70% -------------------------------------------------------------------------------------------------Philippines Total expenditure (in billion pesos) Percent 100.2 3.6 Tobacco 0.4 0.9 2.3 Other expenditure 3. Technological Environment E-Commerce 16 .6 6.0 0.6 House maintenance and minor repairs 0.295 100.8 2.7 3. 2008 b.8 Gifts and contributions to others 1.4 1. footwear and other wear 2.2 0.3 7.3 4.0 13.5 0.2 0.3 Nondurable furnishings 0.0 2.3 4.8 1.3 43.2 3. 2006 Family Income and Expenditure Survey Preliminary Results.9 2.7 3.6 0.0 2.2 40.9 3.7 2.7 7.2 1.5 Medical care 2.2 0.3 Note: Details may not add up to totals due to rounding Source: National Statistics Office.6 0.5 0. Page last updated: February 19.5 Recreation 0.3 Special family occasions 2.6 0.0 2.Table 3.7 0.6 Transportation and communication 8.7 3.0 2.8 8.038 212 1.0 3.1 Personal care and effects 3.9 1.827 100.4 2.2 13.8 1.0 100.3 3.5 0.6 1.4 1.7 2.8 2.9 1.2 0.8 House rent/rental value 12.2 1.9 Fuel.9 2.1 60.1 Clothing.7 4.2 0.5 0.8 2.7 1.6 2.4 59.8 Taxes 1.7 3.0 100.4 2.5 3.0 Food expenditure 41. light and water 7.7 6.0 100.3 3.7 0.2 0.3 1.7 1.6 7.9 3.1 8.5 2.8 0.5 0.7 4.6 0.2 0.0 2.5 6.561 266 2.0 Education 4.2 Household operation 2.7 0.8 13.0 Alcoholic beverages 0.2 Durable furniture and equipment 2.2 0.7 1.2 2.

Inc. the researcher concludes that new adopting ecommerce will benefit the Standard Insurance Co. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle. supply chain management. A small percentage of electronic commerce is conducted entirely electronically for "virtual" items such as access to premium content on a website. Online retailers are sometimes known as e-tailers and online retail is known as e-tail. but most electronic commerce involves the transportation of physical items in some way. E-commerce or electronic commerce is generally considered to be the sales aspect of e-business. sometimes also called Business-to-Customer) describes activities of E-businesses serving end consumers with products and/or services. commonly known as e-commerce or ecommerce.wikipedia.7 Conclusion: Based on the analysis above. automated inventory management systems. The amount of trade conducted electronically has grown dramatically since the spread of the Internet. Business-to-consumer (B2C. electronic data interchange (EDI). because Internet usage in the Philippines is very rampant nowadays. spurring and drawing on innovations in electronic funds transfer. and automated data collection systems.org/wiki/E-commerce 17 . A wide variety of commerce is conducted in this way. Economic Environment 7 http://en. B2C relationships are often established and cultivated through some form of Internet marketing. Internet marketing. consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. although it can encompass a wider range of technologies such as e-mail as well.Electronic commerce. It is often associated with electronic commerce but also encompasses financial institutions and other types of businesses. online transaction processing. c.

9 % (2007 EST. and political and security concerns.per capita: purchasing power parity . prior to the crisis.) GDP . it will take a higher.6% decline in 1998.4% in 2000. though central bank reserves appear adequate and large remittance inflows appear stable. 7.3(2003) 2. Fiscal constraints limit Manila's ability to finance infrastructure and social spending.8 GDP: purchasing power parity .1 billion (2006 EST. sustained growth path to make appreciable progress in the alleviation of poverty given the Philippines' high annual population growth rate and unequal distribution of income. GDP expanded by 2. Average GDP growth accelerated to about 5% between 2002 and 2006 reflecting the continued resilience of the service sector. The implementation of the expanded Value Added Tax (VAT) in November 2005 boosted confidence in the government's fiscal capacity and helped to strengthen the peso. Large unprofitable public enterprises. an export slump. Investors and credit rating institutions will continue to look for effective implementation of the new VAT and continued improvement in the government's overall fiscal capacity in the coming year. higher interest rates on its dollar borrowings.real growth rate: 6.93 million (2007) Unemployment rate: 10.9% (2007) Currency: 1 Philippine peso (P) = 100 centavos 8 https://www.2% in 2001 in the context of a global economic slowdown. 41. Credit rating agencies have at times expressed concern about the Philippines' ability to service the debt. but slowed to 3. making it East Asia's best performing currency in 2005-06.700 (2006 EST.cia. especially in the energy sector.) GDP . contribute to the government's debt because of slow progress on privatization. and this situation has forced Manila to spend a large portion of the national government budget on debt service.) Inflation rate (consumer prices): 8.$508.4% in 1999. and higher inflation. From a 0. and 4.gov/library/publications/the-world-factbook/geos/rp.The Philippines was less severely affected by the Asian financial crisis of 1998 than its neighbors. The Philippines' consistently large budget deficit has produced a high debt level.4% (2003).7 %( 2007) Labor force: 35. aided in part by its high level of annual remittances from overseas workers. no sustained run-up in asset prices. Nonetheless.79 million (2006). and improved exports and agricultural output.$5. and more moderate debt.html 18 . The Philippines also faces higher oil prices.

Marcos. the supervision of this business has become an integral part of our government process. 53. as well as our property rights. 39.28 (2006).ph/htm/_profile.471 (1997).893 (1998).203 (2003). Sec. Whenever used in this Code. Political / Government / Legal Environment Government Insurance Commission Insurance touches all our lives in a multitude of ways. the following terms shall have the respective meanings hereinafter set forth or indicated. 29. Everyone in this country feels the protecting arm in some form of insurance and most of us are affected by the many forms of its protection.052 (2004).427 (January 2000). 49.216 (1996). the researcher concludes that the general economic environment is positive for non-life insurance business. by virtue of the powers in me vested by the Constitution.714 (1995) Conclusion: Based on GDP. do hereby decree and order the following: GENERAL PROVISIONS Sec. 40. Ferdinand E.gov. 1. damage or liability arising from an unknown or contingent event.089 (1999). 26.9 Legal Environment The Insurance Code of Philippines” Presidential Decree 612 ORDAINING AND INSTITUTING AN INSURANCE CODE OF THE PHILIPPINES I.40 (2007). 40. This Decree shall be known as "The Insurance Code". 9 http://www. A contract of surety ship shall be deemed to be an insurance contract. d. President of the Philippines. 2. as such.10 (2005). is doing an insurance business as hereinafter provided. It is an essential element in our present day life. only if made by a surety who or which.Exchange rates: Philippine pesos (P) per US$1 = 41. securing our standards of living and the stability of our families.insurance. GNP and other economic indicators. 56. In view of this widespread public interest in the various insurance coverage. 54. within the meaning of this Code. 25.asp 19 . unless the context otherwise requires: (1) A "contract of insurance" is an agreement whereby one undertakes for a consideration to indemnify another against loss.

(2) The term "doing an insurance business" or "transacting an insurance business". as insurer. finding knowledgeable and qualified staff. These may all provide barriers to entry. train and retain qualified staff. the researcher concludes that government agency and laws affects the legal environment of Standard Insurance Co. (d) Doing or proposing to do any business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of this Code. II. certain barriers to entry will still exist. As Standard Insurance Co. including a reinsurance business. Threat of New Entrants When the market is opened to new players. agreements or transactions or that no separate or direct consideration is received therefore. shall include: (a) Making or proposing to make. shall not be deemed conclusive to show that the making thereof does not constitute the doing or transacting of an insurance business. Inc. the term "Commissioner" means the "Insurance Commissioner". (3) As used in this code. any insurance contract. 10 Conclusion: Based on the analysis above.ph/htm/pd612. In the application of the provisions of this Code the fact that no profit is derived from the making of insurance contracts. (b) making or proposing to make. (c) Doing any kind of business. including regulatory requirements such as it requires huge capital investment or minimum capital base. it has built up huge capital base. within the meaning of this Code. specifically recognized as constituting the doing of an insurance business within the meaning of this Code.gov.insurance. an existing and growing agency network. any contract of surety ship as a vocation and not as merely incidental to any other legitimate business or activity of the surety. as surety. to ensure the welfare of consumers and the company itself.htm 20 . The company has been able to find. Inc is already in existence. well brand recognition. and laws to be followed in order to establish a new firm for non-life insurance industry like Insurance Code of the Philippines and application of license in Insurance Commission. INDUSTRY ANALYSIS a. 10 http://www.

The size of the customers dictates the pricing and product feature based on the coverage of the insurance. Inc. d. Inc. Bargaining Power of Suppliers Standard Insurance Co. Bargaining Power of Buyers The bargaining power of consumers radiate from two major factors which are the size of customers and number of companies who sell non-life insurance. clients may not be so willing to move to an “unknown” supplier. even if their premium rates are lower. the education level of the general public regarding the benefits of insurance could improve. Due to Standard Insurance Co. currently is in a strong position as the contender supplier of Non-life insurance products. potential development of 21 . they give the customers extensive choices to choose from. Their price range is relatively good among other competitors. thus increase the overall demand for insurance products and services. Trust. Inc. savings set aside). Threat of Substitutes The only substitute for insurance is a “self insured” type of product (i.. with another player in the market. As a result. There are 94 players in the industry competing in Non-life insurance. e. c. If the company does not offer competitive solution. The company has built a strong level of trust amongst its clients. the Company may not have the ability to dictate premium rates.’s strong position in the market. f. Inc. With regards to number of companies. knowing when a claim is made it will be paid out. Extensive Research and Development and new product innovation like Standard Insurance Co. the one and only company insuring cellular phones are keys in competing and surviving in stiff competition.b. It is unlikely the entrance of another player will have an impact on this type of substitute product. Summary of Porter’s 5 Forces of Competition The researcher performed the industry analysis using Porter’s five forces model. Rivalry Among Competitors There will naturally be a rivalry between competitors. the customer can easily shift to another company.e. Insurance relationships are based on trust. Majority of Non-life insurance market is dominated by Malayan Insurance Co. On the contrary. The researcher specifically analyzed the rivalry among competing firms.

COMPETITIVE ANALYSIS The researcher gathered information on the premiums earned position of Standard Insurance Co. 2006. and potential entry of new firm. 22 . The data as available of December 31.The researcher concludes that the threat of substitutes is LOW .substitute products. Inc. related to its competitors in the Non-life insurance category.The researcher concludes that the threat of new entrants is LOW . the information tells us the premiums earned by other companies.The researcher concludes that the bargaining power of suppliers is LOW III.The researcher concludes that the intensity of rivalry is HIGH . bargaining power of suppliers and bargaining power of consumers.The researcher concludes that the bargaining power of consumer is HIGH . Based on the analysis above the researcher concludes .

23 .

insurance.Source: www.ph 24 .gov.

ranked #9 out of 93 companies. 25 . Inc. 689.gov. Standard Insurance Co. Inc..ph When Gross Premiums is concerned. dominated it. There so much catching to be done by Standard Insurance Co.509.insurance. Inc dominated Non-life Insurance Category.494 against the top contender Malayan Insurance Co. Conclusion: The researcher concludes that Malayan Insurance Co. Source: www. Inc. There is a difference of P1. Inc ranked #4 but still the Malayan Insurance Company Inc.Standard Insurance Co.

. Honda Kalookan. and service offices in Calamba. Malayan has become a multi-million peso corporation. Inc. Quezon City. the company has branches in Makati. and Tuguegarao.malayan. The Malayan Insurance Co. Lipa. which enables processing of claims of up to P15. Marikina and Service Offices in Honda Quezon Avenue.11 11 www. and General Santos. Malayan takes pride in being able to settle just and valid claims in a speedy fashion. Originally capitalized at P147. and Tagbilaran. It has two regional offices: (1) the Luzon Regional Office. Laoag. motorcar. Malayan abides by the core values that have been the bedrock of its business: quality service maintained consistently above standards. Non-life insurance protection is at the heart of Malayan's diversified operations. 000 and domiciled in Manila. the only one of its kind in the country. Tacloban. with branches in Bacolod. The insurance risks it covers include fire. In continuously strengthening its leadership in the industry. Isabela. Cagayan de Oro. Davao. having been established first. ranging from initial inquiries to assistance in the processing of claims.a. and surety. Palawan. Dagupan. Cavite. as evidenced by the establishment of the Customer Service Center (CSC) at the company's head office. Profile of Competitors Malayan Insurance Co. and sincerity in fulfilling its commitment to serve and protect the Filipino people. the loyalty and results orientedness of its employees. and service offices in Zamboanga. Legaspi. miscellaneous casualty and personal accident. and Isuzu Manila. Cabanatuan. Tagum. Cebu.com 26 . La Union. Inc. San Pablo. marine. 000 on motorcar insurance within 24 hours or less. Ayala-Alabang. is considered the core company of the Malayan Group. Malayan has also set up the Express Claims Service (XCS). and (2) the Visayas & Mindanao Regional Office. and Subic. The CSC is a one-stop-shop that responds promptly to customer needs. using a computerized on-line customer database system. professionalism. In Metro Manila. It gives the highest priority to the interest of its customers. Baguio. Iloilo. with branches in Angeles.

and merchandising industries. the roster of which includes prominent multinationals and leaders in the manufacturing. BPI/MS stands on excellent footing. Its well-built financial position allows the company to take advantage of every opportunity that further boosts up its place in the industry.com/company/ucpbgen. FGU and FEB Mitsui. the most financially sound bank in the Philippines and 12 http://www. BPI/MS has ushered a new era of strength and stability. while preserving the stability and integrity which has earned for them distinction and a loyal client base from BPI/MS' predecessors. Fifty-one percent of the company is owned by BPI. it has been wholly owned by United Coconut Planters Life Assurance Corporation (Coco life) since 1989. As a reliable insurance company. and Mitsui Sumitomo Insurance Company. UCPB GEN has earned the trust and loyalty of its clients. setting a new standard of consumer-driven insurance services in the country. wholesale. Inc. have combined operations to form BPI/MS Insurance Corporation. Established as Allied Guarantee Insurance Company. a member of the Ayala Group of Companies and one of the country's most respected banking institutions. It constantly ranks among the Top 10 in an industry of more than 100 players. BUILT FROM A STRUCTURE OF STRENGTH When it comes to financial strength. FGU Insurance Corporation and FEB Mitsui Marine Insurance Company.12 BPI/MS Insurance Corporation The cornerstone has been laid. retail. one of the largest non-life insurance companies in Japan. and was then known as UCPB General Insurance Co.ucpbgen. BPI/MS is a joint venture of the Bank of the Philippine Islands (BPI).. Inc. on January 1963.UCPB General Insurance Company UCPB GEN is one of the largest and strongest non-life insurance companies in the country today. Inc.php 27 . The expertise of BPI and Mitsui Sumitomo is being utilized to enhance service delivery and strengthen market focus. service.

The purchase was made to rationalize the Philippine general insurance business within the larger organization of BPI/MS Insurance Corporation. BPI/MS and Aviva Philippines is now ONE team. Indonesia. In the year 2000. entered into an alliance with Mitsui Marine. Inc. Malaysia. Backed up by its financial soundness and quality service. LAID ON FOUNDATION OF TRUST BPI/MS also carries with it a heritage of trust from FGU Insurance Corporation. In 1998..a leader in banking innovation. one of the oldest insurance companies in the country. Its forerunner. Inc. FGU's holding company. Hongkong and Taiwan. the transfer of Aviva's insurance portfolio in the Philippines to BPI/MS was put into place. As the non-life insurance arm of the Ayala Group. then its owner. This is subsequent to Mitsui Sumitomo Insurance’s purchase of Aviva Plc’s general insurance operations in the Asian region specifically in the Philippines. Singapore. becoming a pillar in the nonlife sector. These identified major competitors were 13 http://www.htm 28 . Far East Bank and Trust Company (FEBTC).bpims. Forty-nine percent is owned by Mitsui Sumitomo Insurance. a global insurance player with 64 branches worldwide. Filipinas Compañia de Seguros was established in 1913. with the signing of an asset purchase agreement. ONE BIGGER AND BETTER COMPANY The year 2006 marked another milestone. with one goal. it has earned a strong reputation of stability and integrity. Prudential Guarantee and BPI/MS Corporation.’s strength and weaknesses in relation to its major competitors which are Malayan Insurance Co. it has built and nurtured a strong and loyal agency force. FEB Mitsui became part of the BPI Group after the latter's merger with FEBTC. Thailand. with one vision. In 1999. For FEB Mitsui.13 Competitive Profile Matrix The researcher used the Competitive Profile Matrix to analyze Standard Insurance Co. which bought fifty percent of the company. the groundwork of trust was laid in 1965 when it was then known as Makati Insurance. FGU was acquired by BPI when the bank merged with Ayala Insurance Holdings.com/about. Through the years. With this integration. FEB Mitsui steadily grew to become one of the top ten non-life insurers.

have combined operations to form BPI/MS Insurance Corporation. Malayan Insurance supported of their banking institution it will be an easy process for the company to get customer because if the customer loan from RCBC the strategy of promoting the non-life 29 .1 0.8 0. BPI/MS is a joint venture of the Bank of the Philippine Islands (BPI). Variety of Product.15 3. Malayan Insurance and Prudential Guarantee were given the same mark.1 3 0.15 2.3 0.15 3.1 0.75 3 4 3 3 4 3 3 0.3 0.0 because it will be supporting factors for success of the company.9 0.3 0.2 0.4 0.based on the ranking as Gross Premiums is concerned (See Competitive Analysis Table below). Management and Customer Loyalty were given a weight of 1.4 0.1 0. Inc.3 0.2 Service and Corporate Strategy are the most important success factor to top in Non-life insurance category.9 0.15 2. Financial Position.6 0. First. The strategy of having a joint venture with one of the leading banking institution in the country is an excellent idea plus the fact the MS Insurance Corporation is one of the biggest non-life insurance Corporation in Japan to achieve global expansion that’s why it was given the highest mark. Corporate Strategy was given a weight of 0. Standard Insurance Malayan Insurance Prudential Guarantee BPI/MS Corporation Critical Success Factor Advertising Variety of Products Financial Position Service Corporate Strategy Management Customer Loyalty Market Share Total Weight Rating Score Rating Score Rating Score Rating 0.4 0.1 0.2 0.3 0.6 0. FGU Insurance Corporation and FEB Mitsui Marine Insurance Company.15 2 0.3 0. In terms of the corporate strategy.3 0.3 0.15 3 3 3 4 3 3 3 0.3 0.05 2 0.9 0.9 0.2 because this is a factor that 4 companies might differ in ways how to do their business and enables the firm to respond to the changes in the market.3 0.05 1 3 3 3 2 4 2 3 0.2 3 3 3 3 3 3 3 0.3 since the industry is more on serving the customers.3 0.3 0. Service was given a weight of 0.3 0.1 0.95 Score 3 0.4 0.

threat of substitutes is LOW. (formerly PGA Yasuda Insurance Company. bargaining power of suppliers is LOW. to ensure the welfare of consumers and the company itself. Standard Insurance Co. There so much catching to be done by Standard Insurance Co. 30 . the researcher concludes that the general economic environment is positive for non-life insurance business. Based on competitive analysis. to form PGA Sompo Japan Insurance Inc. many of who belong to the country's top 1. IV. the researcher concludes that Malayan Insurance Co. SUMMARY AND CONCLUSION a. one of the first fire insurance organizations in Japan and one of the top 10 non-life insurance companies in the world. (formerly Yasuda Fire and Marine Insurance Company. The researcher concludes that the intensity of rivalry is HIGH. Inc.) PGA Sompo Japan is now a highly successful organization. threat of new entrants is LOW. They need to improve the corporate strategy. servicing the insurance needs of numerous multinational companies based in the Philippines.000 clients. Inc.insurance policy is very effective. The company needs strategies to address the stiff competition in Non-life insurance. Summary of Key External Factors Registered car. Prudential Guarantee has successfully entered into a joint venture with Sompo Japan Insurance Inc. Ltd. The company is having one-stop non-life insurance. In terms of service. The researcher concludes that government agency and laws affects the legal environment of Standard Insurance Co. all of them were given a mark of 3.). was given the lowest mark among the three because the company does not have their own banking institution and did not reach for global expansion but they survived in this competition and being ranked #4 means that company is very competitive even without those advantages that other 3 big company players had.000 corporations. Secondly. through superior technical knowledge. innovative marketing and excellent services. GNP and other economic indicators. Inc. These companies handle more than 150. Based on GDP. Inc dominated Non-life Insurance Category. Inc. population and import of cars in the Philippines are continuously growing so the demand for car insurance will be increasing and it will be an opportunity to grab a market share. bargaining power of consumer is HIGH.

32 pesos . response to external factor is just average. the researcher concludes that Standard Insurance Company Inc.15 0. demographic. is given below: Key External Factor Opportunity Strengthening of Peso Value as of 2008 (40.05 0. The external factor evaluation matrix for the Standard Insurance Company Inc.52% Increase of car related incidents nationwide New laws governing the insurance code of the Philippines Threats Leading Competitors increased its ad expense Moral Hazard and Adverse Leading rival firms are more fully integrated Economic and Political Disability Increasing governmental regulation in the industry Increase of old cars that can't be anymore insured Total Weight Rating Weighted Score 0.2 1. technological and competitive information.05 0.3 0.8 0.05 0.1 0.1 0.3 0. The external factor evaluation matrix summarizes and evaluates the economic.15 0.1 0. 31 .2 0.1 3 3 3 4 2 0.2 0.35 Based on EFE Analysis.1 0.05 0. cultural.1 0. External Factor Evaluation (Matrix) The researcher performed the industry analysis using the external factor evaluation matrix.1 dollar) Increase in Life sum insured as % of GDP last three years 28.3 0. environmental.3 0.59% Decrease of Inflation Rate last three years by 2. Positive economic environment and innovations on car insurance products and services will help them to grow in the industry.b. social.1 1 3 2 3 3 3 2 0.15 0.

SISON Member CRESENCIO V. YTURZAETA Executive Vice Presidents CELSO P. AYSON Assistant Corporate Secretary Corporate Officers EDITH D.CHAPTER 5 – INTERNAL ANALYSIS I. ASPIRAS. DE LAS ALAS Chief Legal Counsel / Corporate Secretary 32 . RODRIGUEZ OFELIA P. CAMPOS. GARCIA Assistant Treasurer CELSO P. Vice Chairman EDITH D. JR. SUMAJIT Member CARMELITA E. DOMINGO Member JOSEPHINE E. La'O Member GIDEON G. MANAGEMENT Board of Directors ERNESTO T. Member ESTELA P. JR. ECHAUZ Chairman PAULO E. SUMAJIT President / Chief Executive Officer WIVINIA C. LICHAUCO Treasurer VALENTINE B. DE LAS ALAS Corporate Secretary JOEL RAYMOND R.

MINEZ JR. ESTRERA AMELIA M. JR. SEVERINO REYNALDO D. ALAMPAY CARMEL N. FRANCISCO III MA. FIDEL JOSE GERARDO G. REMEDIOS D. SANTIAGO ELVIRA S. MANUCOM ARISTON F. VILLAMIL First Vice Presidents ELIA AKOL ELAINE JOY D. ROLANDO M. CASTILLO ALFREDO F. ROGACIANO E. TENDERO ANATOLE DAN R. ABITAL ROGER P. BERKENKOTTER JEFFREY JOSEPH R. INOCENO MARICHU M. ESCOTO MA. CHRISTINA T. NEPOMUCENO 33 . DELA CRUZ JOSELITO P. GALEA MARILOU M. BAUTISTA JOEL D. MENDOZA MARLENE P. VIRAY Senior Vice Presidents MARIBETH C. HERNANDEZ NOEL T. GONZAGA SILVESTRE D. DE LAS ALAS DOMINGO A. SANTILLANA. ENFESTAN JOSELITO L. REYES ZALDY G. AMPO MARVIN M. CALUNSAG JOEL VICTOR K. GALANG EDGAR J. SORIANO LETICIA C. RAMIREZ WILFREDO EMMANUEL JUAN E. MABIOG ROMULO M. MITRA JOSEPH G. CASTRO EDENA B. JR MARITA R. GOMEZ HILARIO M. BRAZIL MIGDONIO G. ESPEJO LEANDRO M. NAVARRA ROLANDO E. AGUIRRE PAUL A. LAZAGA DIVINIA D. BOBADILLA ANTONIO L. RODRIGUEZ ALEX S. MOLINA SEVERO L. UMALI ELIZABETH G. BUGARIN.ANTONIO B. INDIANA JANET R. SUSMERANO Vice Presidents EDEN O. MACAPINLAC JESSE JAMES S.

DEFENSOR VILMA D. CRISOSTOMO EDILBERTO M. ACUNA BASILIO F. TESSIE ALVARES GERALDINE G. PUDE SIM S. MARKETING 4 P’s of Marketing 34 . AGRAMON JR. MUÑIZ LEILA U. ESPAÑOL NOLAN E. RAMOS DHORA FLORESSA T. ABORDO DESIDERIO T. DAVID MA. CASADO REGINA B. THERESA Q. DOLLENTAS ALMA C. GO AUGUSTUS M. CRISTINA G. SANTOS Assistant Vice Presidents II. VALENZUELA III ANGELO R. SALDAVIA ANTONIO S. HIZON MA. MA. BALIGOD RAOUL V. LAYUG ISIDRO F. PATROCINIO M. ROJAS JERALINE Q. LAGRISOLA ARLENE O. TEMBLOR SR. PATAG HERMES PIDO CONRADO B. VILLAMEJOR Senior Assistant Vice Presidents CELIA P. CONCEPCION REMEDIOS H. CRISTINA D. SANCHEZ GLORIA V. COMBALICER-SALDAVIA LODY M. GLODOVIZA RIZALINA D. LASCO KAY N. TANJUAKIO FLORIDO V. ACEBEROS MA. MANUEL ANA LISA V. QUINA CAMILO S.BERNARDITA H. ORUGA MARIA RICA RAMIREZ SEYMOUR B. GONZALES LINA FLOR G. CUETO JOAQUIN E.

Product Standard Insurance provides the following types of motorcar insurance policies:      Private Car (PC) Commercial Vehicle (CV) Motorcycle (MCY) Motor Trade (MT) Land Transportation (LTO) The Standard Motorcar Insurance gives you more reasons to drive with ease and peace of mind with the following coverages: Own Damage Coverage against damages to the property insured arising from accidental collision.Coverage against liability for damage to third party property arising from accident caused by the insured vehicle. Third Party Property Damage (TPPD) . overturning.A. subject to the schedule of indemnities incorporated in the policy. Excess Bodily Injury (EBI) Coverage answers for indemnities beyond the limit set forth under CTPL coverage. 35 . • • Compulsory Third Party Liability (CTPL) Coverage required by the law that protects the assured against liability for death of or bodily injury to third party arising from an accident involving the insured vehicle. Theft • Coverage required by the law that protects the assured against liability for death of or bodily injury to third party arising from an accident involving the insured vehicle. falling. fire and malicious acts of third party. subject to the schedule of indemnities incorporated in the policy.

Coverage for the family.standard-insurance. The company is engaged in Internet and Ecommerce strategies. sales conferences and technical conferences. Promotion Standard Insurance Co.html 36 . Free Roadside Assistance Program You will be provided with towing and other services in cases of accidents or vehicle breakdown Automatic Technical Assistance A group of auto-experts will assist you in assessing the extent of damages of your car in case of accident Casa Repair Because of our extensive tie-ups with Car Dealers nationwide. we provide automatic 5. press releases. has its own marketing group that provides excellent service strategies to both employees and customers. 14 http://www.000 each. The company participated in car exhibits of different car dealers and they have racing car entry for the Philippine Grand Prix which is an avenue for promoting the company in other sector. Inc.star motor shop repair for cars 12 years old and below14 B. Online Inquiries and Feedbacks were designed to know customers insights about the product and services. The major marketing communication strategies revolved around online marketing.A.Pa Rider This is a voluntary coverage that financially protects the passengers against injury or death arising from car accident.com/new_site2/motorcar. This includes five (5) members of your family for P10. Value-Added Services Free Accident Coverage (PA) Free P.

Finance/Accounting For the year 2006. Placement Standard Insurance Co. which accounted for 61% of total gross premiums. III.4% growth in gross earned premiums to a level of P1. In spite of the expected negative growth of the non-life insurance industry at -2% for 2006. Inc pricing depends on which type of car that the customer wants to insure. Inc. Pricing Standard Insurance Co. the company posted a 10.. posted a growth rate of 6%. the company fully adopted the Philippine Financial reporting Standards (PFRS) of accounting from the previous years’ Philippine Accounting Standards (PAS). Motor car insurance. Net Income (2004-2006) The graph below shows the annual net income of the Standard Insurance Co. This has placed the company as the fourth largest non-life insurance company in the country with expectation of being third by the end of 2007. A. have the most extensive and the most advanced in the industry with 43 computerized full service branches nationwide with underwriting and claims servicing capabilities. more than 200 car-dealer tie-ups nationwide. They provide quotations and give discounts.C. Inc. for the past three years (2004-2006) 37 .96 billion. D.

Standard Insurance has adopted the Zurich practices in risk engineering. Automotive parts that are recommended for replacement by its Technical Assistants are carefully studied to ensure that correct terminologies and part numbers are used to arrive at accurate quotations for every 15 http://www. The rollout and shifting to the I-90 for the rest of the branches is projected to be completed towards the end of 2007. was carried over from Zurich General Philippines and is currently in use by corporate marketing and some Metro Manila branches.764 then a major drop in net income was experienced during 2005 of -15% .463. the Company's real-time general insurance system complemented by its own IT department.026 or 35% increase in net income for 2006 IV. Inc had an annual net income of P103.566. RESEARCH AND DEVELOPMENT Electronic Parts Catalog The Parts Section of the Technical Department plays an important role in the processing of Repair Valuation Reports as basis in Motor Car Claims Settlement. and ground shaking and flooding. 2003 and has been maintained since then15 V. PRODUCTION/OPERATION Technical personnel are engineers and trained mechanics who perform car repair estimates supported by the Company's own computerized parts database for all major models of popular brand vehicles. liquefaction.com/new_site2/company_profile.882 to P 135.413.html 38 .Standard Insurance Co.standard-insurance. Its risk engineering process includes the use of Geographical Information System (GIS) where mapping of property risks linked to the online system is made against pertinent CAT hazard maps such as fault lines. Its ISO certification for quality management systems received in 1998 was upgraded to an ISO 9001:2000 in October. In the industry. as well as catastrophe (CAT) cover are supported by superior reinsurance facilities procured from the London and Singapore markets from international reinsurers with the lead rated by S&P at AAA and the rest of the panel at no less than A-. marine and liability insurance. the company was ale to regain from P 88. underwriting and industrial claims processing complemented with an in-house adjusters team. The Company's property. Furthermore in spite of negative growth of the non-life insurance industry at -2% for the same year. The Company is accredited by most of the major banks and financial institutions. These facilities are under the excess of loss reinsurance treaties with its property and CAT covers having the highest capacities in the industry. The Insure/90. In the meantime. it has the quickest turnaround time with repairs in the car dealership shops and the only one with its own call center to support its retail operations.

extensive assessment of the natural disasters becomes essential to risk managers.com/new_site2/epc. a selection has to be made out of various choices to display the Illustrated Index for the chosen group.. In the Philippines. 16 http://www. All you have to do is follow the instructions displayed on the computer screen and input the vehicle information which could be done in three ways such as the VIN (Vehicle Identification Number). The Illustrated Index for the chosen group and the Figure Number List will appear on the screen in which you just move the "mouse" to the left or right to such direction and clicking the button of the "mouse" for your chosen figure to appear on the screen to get the information to match the part description and part number. invests on resources one of which is the acquisition of available EPCs (Electronic Parts Catalogs) needed by its staff to access varied pieces of automotive information.standard-insurance.model and make of insured vehicle inspected. The company's application of modern technology in its processes such as the Electronic Parts Catalog to provide fast and accurate Repair Valuation Reports along with a competent Technical Team truly makes Standard Insurance Co. in its goal to continuously lead in the insurance industry. the leader in the motorcar insurance industry. Part Number Application to Models. The EPC contains Parts List. Inc. Automotive Parts Catalogs. typhoon and flood for insurance cover. Model Name / Catalog Code or the Model Code..html 39 .. Inc. EPC etc.16 How GIS technology helps Standard Insurance in natural hazard assessment? The insurance industry is continuously improving risk management by installing appropriate systems and tools for the hazard assessment of perils such as earthquake. Standard Insurance Co. When the Search Route appears. List Price and Illustrations among other details. considered as one of the most disaster-prone countries in the world. This is made possible through the use of the Standard Insurance Auto Parts Data Base.

underwriters and risk managers will be able to apply the concepts of risk transfer or reinsurance. underwriters. etc. the company is able to acquire catastrophe cover from international reinsurance companies at a high coverage against total accumulation. Through this. i. has initiated its own study of local natural hazards. insurers control its financial exposure through a risk management technique called risk transfer. liability limits.e. portfolio analysis and catastrophe analysis are done as part of the risk management techniques. one party transferring the financial effects of his loss to another party.. With the known exposure to the different natural hazards. Accumulation control. is vital to an insurer to enable him to reduce to acceptable levels of probability the severe claim or accumulation of claims that will ruin or threaten the company's financial stability. cession limits. While hazards may be present in a particular risk exposure. 40 . risk assessment techniques are developed to determine the degree of geohazards involved in each risk (property to be insured). The concept of transferring risk. Inc. risk engineers and risk engineering analysts are made aware of the important areas or aspects of a particular property which will need closer attention with respect to risk assessment. Natural Hazard and Risk Assessment In underwriting risk against natural perils. the need for mitigation and engineering measures against those hazards are likewise taken into consideration in order to determine the extent of the exposure and their probability of occurrence. which GIS graphically represents in maps. Standard Insurance Company. The company's GIS is utilized to provide risk accumulation analysis. Risk Management While insurance companies allow themselves to accept sizeable amount of risks and the number of individual risks for which it wishes to underwrite and accumulate. Through these analyses. natural hazard information and risk assessment plays an important role.Through the Geographic Information System (GIS) and the Global Positioning System (GPS).

the system generates natural hazard assessment reports which include hazards brought about by earthquake. developed the Catastrophe Risk Monitoring System (CRMS). type of structural frame. the company. CRMS in Risk Management CRMS provides risk managers information about the current accumulation of policies in force in terms of gross sum insured. typhoon. through the Risk Engineering and Risk Management departments of Standard Insurance. and to provide a system that can generate and manage risk information for the acquisition of reinsurance facilities and Catastrophe (CAT) cover. Utilizing the system for natural hazard and risk assessment enables us to plot the risk being insured over various natural and geologic hazard maps. typhoon. is in the first phase of development covering Metro Manila. Apart from the natural hazard information in the database. low and none. flood. Subsequently. etc. and volcanic eruption. CRMS also includes in its records risk engineering information related to the physical characteristics of the property such as building height. The rating system provides risk engineering analysts and underwriters a better understanding of the degree of exposure involved and other factors that influence the exposure levels present in a particular property being assessed against the natural hazards. age.0.Catastrophe Risk Monitoring System (CRMS) Cognizant of the need for a natural hazard and risk assessment tool for better underwriting and risk engineering. moderate. Accumulation zones in Metro Manila are subjected to accumulation 41 . etc. currently in version 1. The natural hazard information included in the system is initially limited to earthquake. type of construction. volcanic eruption and landslide. However. landslide. The system. The hazard susceptibility rating is analyzed and rated according to grading levels of high. also form part of the overall risk assessment prior to acceptance or declination of the risk. flood. not all risks located in "high" hazard areas should be treated as "high risk" or unacceptable risk without considering the engineering measures implemented and the physical conditions of the property. Engineering measures such as seismic design.

MANAGEMENT INFORMATION SYSTEM Cellphone Insurance System . The CIPD can be used for a simple viewing. 4 (Sta. anti-fraud and accounting. Metro Manila comprises of 4 out of the 9 CRESTA Zones for the entire Philippines. The CIPD allows these units to have a common data container for a simple and automated data processing and operations. 3 (Manila Bay Reclamation area). Risk accumulation information generated by the system is always "current" and is constantly being updated.limits. 3 and 4). Each user have their own access code to uphold security measures where every entree cipher has its vital confines on the operating modules in CIPD. reinsurance facilities. updating and accumulation of records up to a dense and convoluted reports generation. Catastrophe analysis can also be made through the CRMS using the Catastrophe Risk Evaluating and Standardizing Target Accumulations (CRESTA) Zones. thereby allowing the utilization of such information in formulating retention policies.html 42 .com/new_site2/gis. underwriting.CIPD Cellphone Insurance Policyholders Database (CIPD) is an innovative web-based system used by the Cellphone Insurance Department (CID) that aims to integrate the figures from its key units namely claims. These limits prompt risk managers not to accept any risk with gross sum insured exceeding the maximum limits imposed.17 VI. Most insurance and reinsurance companies use this zone method to analyze the catastrophe exposure for CAT cover. Cruz/Binondo area) and 5 (areas within Metro Manila but outside zones 2. These zones are 2 (Makati City area). This maintains the distinctiveness of each and every unit. liability limits. cession limits. It also maintains a 17 http://www. and others. The viewing and accretion of records have been made easy through a search engine facility that accepts several user parameters to perform its query.standard-insurance.

This feature intends to monitor the progress of each and every claim including the status of the claim before and after the required documents have been submitted. complain or anything that concerns a customer. This section provides Excel format reports that are based on the encoded figures provided by the users. The 'claims monitoring facility' is another feature on hand in CIPD. One of the key areas of the CIPD is the Reports Generator section. Summary and Conclusion 18 http://www.com/new_site2/cipd.html 43 . This section also includes the auto-printing of a denial letter for denied claims. Overall. A customer communication board has been made available as a means of communication for all the users concerning matters focusing on the clients. This will ensure a faster and more efficient processing of claims. The report generator is a restricted module where only unit and department heads are provided with the access since these records are confidential. A user can post minutiae of a client's request.standard-insurance.'claims forms' section where forms and documents of the claims unit can automatically be printed by just feeding the essential details.18 VII. Collection reports. no of claims by status and financial status of policyholders are just some of the reports generated by CIPD. SUMMARY AND CONCLUSION a. its objective is to provide enhanced services for a guaranteed customer satisfaction and improved relationship with clients.

08 0.18 44 .05 0.24 0.06 0.06 0.05 0.24 0.06 0. one of the leading organizations in the non-life insurance industry. an ISO 9001: 2000 version certified company.3 0.15 0.. cellphone and others 0. Internal Factor Evaluation (IFE) Matrix Weighted Weight Rating Score Key Internal Factors Strength Customer Support 24/7 The company have 43 branches nationwide The company have 200 car dealer-tie up The company have different line of services in Nonlife Insurance Standard Insurance Co.08 0.1 2 4 3 3 4 3 4 3 3 3 0.24 0.. Internationally affiliated by Zurich General Services in Switzerland Only company that provides cellphone insurance 24/7 Roadside Assistance Program Online Services and Bidding Program Agency participation in selling insurance Weakness Standard insurance Company assets is lower than industry average Irregularity of Prices and Figures in Non-life insurance qoutation Supply of parts in motor car.15 0.2 0.45 0.2 0.b.05 0.05 0.06 2 4 3 0.18 0.1 0.2 0.15 0. Inc.16 0.

99 CHAPTER 6 – STRATEGY FORMULATION The comprehensive analysis on the internal and external environment enabled the researcher to identify the different opportunities and threats to the Standard Insurance Co. as well as selecting strategies to pursue. It will utilize several strategy formulation tools to come up with strategic plans which are: • • • • Boston Consulting Group Matrix (BCG) Internal-External Matrix (IE) Strategic Position and Action Evaluation Matrix (SPACE) The Grand Strategy Matrix 45 .05 1 2 0. David). The firm’s present strategies.1 2. provide a basis for generating the evaluating feasible alternative strategies.Slow processing of approval in claims Total 0. Strategy analysis and choice seek to determine alternative courses of action that could best enable the firm to achieve its mission and objectives. objectives and mission. (Fred R. Inc. This chapter focuses on generating and evaluating alternative strategies. coupled with the external and internal audit information. It also determined the strengths and weaknesses of the company.

The matrix is made up of four quadrants and the circle size lends a third dimension – turnover.5 LO W 0.• • The Threat-Opportunities-Weaknesses-Strengths (TOWS) The Quantitative Strategic Planning (QSPM) Matrix The Quantitative Strategic Planning (QSPM) Matrix will then be used to ascertain the comparative attractiveness of unconventional strategies in order to impartially select the best strategy. BCG MATRIX The researcher utilized this tool to aid Standard Insurance Co.0 19 Strategic Management 11 Edition by Fred R. Cash cows are cash generators and require an invest or hold strategy while maximizing cash flow. They are found in growing markets and require funding if they are to become stars. David HIG H CASH COW STAR th DOGS QUESTION 46 . If necessary. Questions marks could also be divested if they do not have a chance of becoming a Star. It assists with the optimization of the benefits associated with relative market share (competitive cost position) and the impact of the growth rate of the market (position on the product life cycle).0. investing in the Stars and some select Question Marks and divesting or holding Dogs. They can be left alone or removed from the portfolio.0 MED .19 RELATIVE MARKET SHARE POSITION HIG H 1. I. Dogs are neither cash generators nor in many instances cash drains. Stars are potential cash cows and require adequate funding to establish a dominant position before the market growth rate slows down and they become cash cows. Question marks do not have market share on their side. The aim is to achieve a balanced portfolio. If not withdrawal is possible. in the measurement of all their company products and services according to relative market share and market growth. Inc. The concepts underlying this matrix are those of the experience curve (x-axis measures relative market share) and the product life cycle (y-axis measures market growth). sustaining or holding the Cash Cows. There has been a lot of criticism regarding the growth – share matrix and many subsequent matrices have been designed to try to overcome these deficiencies.

and a score of 3. Inc. INTERNAL EXTERNAL MATRIX (IE MATRIX) The diagram below shows the Internal-External Matrix of the Standard Insurance Co. an IFE total weighted score of 1. on the y axis.0 to 2. Recall that each division of an organization should construct an IFE Matrix and an EFE Matrix for its part of the organization. Inc. a score of 2.0 to 2. II.99 is considered low.0 to 1. backward and horizontal integration.0 is strong. market development and product development. backward and horizontal integration.0 INDUSTRY SALES GROWTH RATE LO W– 20 Based on the result of two evaluative dimensions in the BCG Matrix. 47 . CONCLUSION: The research concluded that based on the BCG Matrix Standard Insurance Co.MED . a score of 2. This division with a high relative market share and high industry growth and the recommended strategies are forward. market penetration.99 is considered average.0 to 4.0 is high. On the x axis of the IE Matrix. Standard Insurance Co.. The total weighted scores derived from the divisions allow construction of the corporate-level IE Matrix.99 is medium.0 to 4. is in the quadrant of stars and the recommended strategies are forward. market development and product development. Similarly. an EFE total weighted score of 1.99 represents a weak internal position. and a score of 3. market penetration. The IE Matrix is based on two key dimensions: the IFE total weighted scores on the x axis and the EFE total weighted scores on the y axis. Inc is positioned under the STAR Quadrant Stars are potential cash cows and require adequate funding to establish a dominant position before the market growth rate slows down and they become cash cows.0 to 1.

and product development) or integrative (backward integration.00 1.99 which is considered average as shown in the x-axis in IE Matrix above.00 20 Strategic Management 11th Edition by Fred R. Successful organizations are able to achieve a portfolio of businesses positioned in or around cell I in the IE Matrix For the Standard Insurance Co. the prescription for divisions that fall into cells I.00 HIGH 3. Intensive (market penetration.0 to 4.0 to 2.0 to 4. and horizontal integration) are the commonly employed strategies. V. The result of the EFE and IFE intersect in cell II which indicates a strategy of Grow and Build. market development. the External Factor Evaluation in Chapter 4 resulted to a total weighted score of 1. First. and horizontal integration) strategies can be most appropriate for these divisions.99 WEAK 1. or IX is harvest or divert. and product development) or integrative (backward integration.00 EFE=3 MEDIU M 2.20 THE IFE TOTAL WEIGHTED SCORE STRONG AVERAGE 3.0 to 1. David LOW 1..99 2. divisions that fall into cells III.00 2.35 which is considered as low as shown in the y-axis of the IE Matrix.99 1.00 3. Intensive (market penetration. market development. Third. forward integration.99 48 IFE = . VIII. or VII can be managed best with hold and maintain strategies. or IV can be described as grow and build. The Internal Factor Evaluation in Chapter 5 resulted to a total weighted score of 2. a common prescription for divisions that fall into cells VI. market penetration and product development are two commonly employed strategies for these types of divisions.The IF Matrix can be divided into three major regions that have different strategy implications.0 3.0 to 1. forward integration.0 2. Second. Inc.0 to 2. II.00 I II III IV V VI VII VIII IX 2.99 4.

market development. profit potential. Barriers to entry. and product development) or integrative (backward integration.21 FINANCIAL STRENGTH Return on Assets and Equity is high. industry price fluctuations. conservative. STRATEGIC POSITION AND ACTION EVALUATION MATRIX (SPACE) The SPACE Matrix characterizes a strategy as being aggressive. the SPACE Matrix analysis functions upon two internal strategic dimensions: financial strength and competitive advantage. the SPACE factors which determine a business’ external strategic posture are: technology.00 21 Strategic Management 11th Edition by Fred R. Inc. current ratio of 2. forward integration. and risk. customer loyalty. the researcher concludes that Intensive (market penetration.00 3. working capital and cash flows. 10.7% respectively.00 4.9% The company has a high liquidity ratio. The factors considered under competitive advantage are market share. defensive or competitive in nature. life cycle. quality. inflation rates.28 times and net profit margin is 17. The SPACE Matrix methodology factors each of these dimensions and places them on a Cartesian graph with X and Y coordinates. price elasticity.09 times and quick ratio of 1. Additionally. demand. The SPACE factors under financial strength which analyze a business’ internal strategic posture are: return on investment.Conclusion: Based on the results of the IE matrix. and horizontal integration) are the recommended strategies for Standard Insurance Co. liquidity.3% and 21.5% in 2006 RATING 4. and supplier influence while the factors under industry strength are growth potential. asset turnover is 65.00 11. leverage. financial stability and resource utilization. competitive pressures. III. In contrast.68 times The company increased from gross premiums of 2005 by 60. The SPACE Matrix methodology also examines strategic factors within two external dimensions: environmental stability and industry strength. David 49 . among others.

Over the past decade. has been the focal point of such attention.. agent services.00 ENVIRONMENTAL STABILITY Political Stability and economic rising of the country for the year 2007 Global Warming and Environmental Issues that affects business RATING -1. Motor insurance.INDUSTRY STRENGTH Non-life insurance premiums grew by 9. global insurance premiums rose by more than a half as annual growth fluctuated between 2 percent and 10 percent Numerical Rating for Motor Vehicle Insurance: Academicians and Insurance industry practitioners alike always try to come up with a premium rating structure that charges each buyer of insurance products according to the risk he/she exhibits. age..g. income and education level).00 12. gender. as premium rates increased. policy plan and customer service staff) as well as between loyalty and policyholder-related factors (e. RATING 5.g.00 4.00 -1.00 50 .4 percent. An empirical analysis of motor vehicle insurance data is performed to predict pure risk premiums to be charged.00 Policyholder loyalty the relationship between loyalty and companyrelated factors (e. 3. in particular.

These insurance companies are fearful of being squeezed out by the big players. Some companies have carved out niche areas in which they underwrite insurance. the average entrepreneur can't come along and start a large insurance company.00 51 .00 -3. Another threat for many insurance companies is other financial services companies entering the market.Threat of New Entrants.00 -8. The threat of new entrants lies within the insurance industry itself. Price inelasticity in relation to demand for insurance -3.

00 -1. an ISO 9001: 2000 version certified company...00 -2.00 -1.00 -1.00 -2.00 The company have 200 car dealer-tie up The company have different line of services in Non-life Insurance Standard Insurance Co. one of the leading organizations in the non-life insurance industry.00 -3. Inc.00 -15.COMPETITIVE ADVANTAGE Customer Support 24/7 The company have 43 branches nationwide RATING -1.00 -2.00 -1. Internationally affiliated by Zurich General Services in Switzerland Only company that provides cellphone insurance 24/7 Roadside Assistance Program Online Services and Bidding Program Agency participation in selling insurance 52 .00 -1.

the directional vector fell on the aggressive quadrant which implies that Standard Insurance Co. forward 53 .5. Therefore market penetration.7) AGGRESSIVE CONSERVATIVE 3 2 1 CA -3 -2 -1 -1 -2 DEFENSIVE -3 -4 COMPETITIVE 1 2 3 IS ES Based on the result of the SPACE Matrix analysis above. horizontal diversification or a combination strategy all can be feasible. is an organization takes an excellent position to use its internal strengths to take advantage of external opportunities. backward integration. market development. Conclusion: Based on the result of the SPACE Matrix analysis. product development. horizontal integration. market development.1. conglomerate diversification. backward integration. product development. the researcher concludes that market penetration. depending on the specific circumstances that face the firm.FS 4 (2. concentric diversification. overcome internal problem and avoid external threats. forward integration. Inc.

integration, horizontal integration, conglomerate diversification, concentric diversification, horizontal diversification strategies for Standard are the recommended Insurance Co. Inc. IV. GRAND STRATEGY The researcher performed the Grand Strategy Matrix Analysis for Non-life insurance (Motor car) of Standard Insurance Co. Inc., The Grand Strategy matrix is a popular tool for formulating alternative strategies, all organizations (or divisions) can be positioned in one of four quadrants based on two evaluative dimensions: competitive position and market growth.22

Rapid Market Growth

Standard Insurance Co. Inc.

QUADRANT II

QUADRANT I

Strong Weak Competitive Competitive condition condition
Quadrant 1 Strategies: - Market Development

QUADRANT III Slow Market Growth

QUADRANT IV

- Market Penetration - Product Development - Backward Integration - Forward Integration - Horizontal Integration - Concentric Diversification

Based on the Space Matrix, the company of Standard Insurance Co Inc. is considered to be located in the FIRST QUADRANT. On this quadrant, it is indicated that the state of the company have a STRONG COMPETITIVE CONDITION together with a RAPID MARKET GROWTH in terms of their market. They have running for 43 years in our local industry and

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seem to have a convincing improvement in their growth and maturity with their increasing share of the market sales. Conclusion: The researcher concluded that Standard Insurance Co. Inc. is considered to be located in the FIRST QUADRANT. On this quadrant, it is indicated that the state of the company have a STRONG COMPETITIVE CONDITION together with a RAPID MARKET GROWTH in terms of their market. The recommended strategies are Market Development, Market Penetration, Product Development, Backward Integration, Forward Integration, Horizontal Integration and Concentric Diversification V. THE THREATS-OPPORTUNITIES-WEAKNESSES-STRENGTH MATRIX (TOWS)

One of the most widely used strategic planning tools is a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Most companies use, in one form or another, SWOT analysis as a basic guide for strategic planning. A SWOT analysis involves a company's assessment of its internal position by identifying the company's strengths and weaknesses. In addition, the company must determine its external position by defining its opportunities and threats. Strengths represent those skills in which a company exceeds and or the key assets of the firm. Weaknesses are those areas in which a firm does not perform well. Opportunities are those current or future circumstances in the environment that might provide favorable conditions for the firm. E. Threats are those current or future circumstances in the environment, which might provide unfavorable conditions for the firm.

Cell 1 contains important areas in which the company is exhibiting poor performance. When a company identifies these areas it becomes aware of the need to improve its efforts in order to strengthen its performance. Important areas in which the company is performing very well are located in Cell 2. A company should continue its current efforts in these areas. Cell 3 contains unimportant areas in which the firm is performing poorly. Since these areas are a low priority for the company, it need not pay a great deal of attention to these areas. The last category, Cell 4, includes areas in which the company is performing well, but which are unimportant. The firm may need to pull back some of its efforts in this area, depending on how unimportant the area is to the overall picture.23
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CONCLUSION: The researcher concludes that the TOWS Analysis resulted to strategies that revolved around market penetration. The Quantitative Strategic Planning Matrix (QSPM) QSPM is designed to prioritize or determine the attractiveness of the strategies generated in the TOWS and IE matrices. VI. An organization cannot implement all the strategies generated in the TOWS and IE. In summary. Market Penetration and Product Development. Strategic Position and Action Evaluation Matrix (SPACE. all of these are • • • • • Market Development Market Penetration Product Development Backward Integration Forward Integration • • • • Horizontal Integration Concentric Diversification Conglomerate diversification Horizontal diversification The researcher utilized the Quantitative Strategic Planning Matrix to objectively evaluate all of these alternative strategies. Threats-Opportunities-Weaknesses-Strengths (TOWS) and Grand Strategy Matrix to define possible strategies for the Standard Insurance Co. Internal-External Matrix (IE). Backward and Horizontal 57 . The researcher used the BCG Matrix. To simplify the QSPM analysis. product development and concentric diversification which is consistent with the results of the other strategy formulation tools. The Integration Strategies includes Forward. so the QSPM is needed and used to narrow the number of strategies down by determining the relative attractiveness of each one. the researcher incorporated all of these strategies into three major categories which are:  Intensive Strategy  Integration Strategy  Diversify Strategy The Intensive Strategies include Market Development.. Inc.

Conglomerate diversification and Horizontal diversification These three major strategies were objectively evaluated using the QSPM based on the previously identified external and internal critical success factor. The Diversify Strategies includes Concentric Diversification. 58 .Integrations.

. should select integration and diversification strategies over intensive strategies. to implement intensive strategies specifically focusing on market penetration. Inc. Inc.97. the intensive and diversification strategy had the highest Sum Total Attractiveness Score which is at 6. Conclusion: The researcher recommends for Standard Insurance Co. This indicates that Standard Insurance Co. product development and market development.Results of QSPM Based on the results of the QSPM...

. • By providing customers with the highest quality products and services. Vision Statement Standard Insurance Co. 1. Achieve a higher rank in Non-life insurance category. These business objectives are both strategic and financial in nature.CHAPTER 7 – STRATEGIC OBJECTIVES AND RECOMMENDED STRATEGIES I. the researcher established specific business objectives for Standard Insurance Co. we will make a positive contribute to society. • While demonstrating responsible management as a good corporate citizen. Double Standard Insurance Co. • To encourage employees in obtaining highest insurance qualifications to give us the leading edge in technical insurance expertise for the benefit of our clients.. • To provide professional Insurance and Risk Management services with the highest sense of integrity to all our customers". Inc. Molding Competent Employees in obtaining highest insurance qualification 5. BUSINESS OBJECTIVES: In this section. we will spread safety and security to all around us. discipline. Mission Statement • To instill a quality culture that promotes the values of professionalism. teamwork and productivity. Inc. and through integrity. Improve Excellent Service and add value to the customer’s money 3. Increase Brand Awareness 4. is committed to continuously improve the quality of service to the insuring public by raising the standard of competency and professionalism. Inc. market revenue share in Non-life insurance by 2009 2.

’s non-life insurance revolve around market penetration. The third objective is to improve their service.The business objectives above were formulated based on the existing vision. Inc. In summary. Inc. the four objectives established for the Standard Insurance Co. and through integrity. Improve Excellent Service and add value to the customer’s money . market revenue share in Non-life insurance by 2008 The recommended strategies to grow Standard Insurance Co. product development and market development. These will enable Standard Insurance Co. The first two objectives focus on growing the revenues generated in Non-life Insurance products.. RECOMMENDED BUSINESS STRATEGIES In this section. II. the recommended business strategies from the strategy formulation chapter are market penetration. The fourth objective is focused is to increase brand awareness. In Chapter 3 which is Standard Insurance Co. This will enable the company to increase their premiums as well as to gain good image when it come to service. is committed to continuously improve the quality of service to the insuring public by raising the standard of competency and professionalism. Inc. Overall. It will be a big factor for the company enable to improve their line of service to gain competitive advantage and customer loyalty. The last objective is to mold competent employees. Inc. Giving rewards and recognition to agencies and branches whose will perform an excellent production.. are fully aligned to the vision of the group. Inc. The specific strategies are to give a quota for agencies and branches target premiums. to go head to head against the Malayan Insurance by the coming years. The strategic objectives along with the corresponding business strategies are given as follows: 1. Double Standard Insurance Co.. the researcher established specific business strategies for each business objective based on the results of the strategy formulation in the previous chapter. This will enable the working force being the crème of the top and competitive employees.

STRATEGY EVALUATION A. After all these business strategies have been achieved it will benefit the company to achieve higher rank. They need to provide free kits on safety driving tips when an individual is getting a driver’s license. Third is to improve the process of claiming the insurance. Quality management Control. dominated it. Inc ranked #4 but still the Malayan Insurance Company Inc. Increase Brand Awareness The recommended strategies to increase Standard Insurance Co. III. Second is advertising through traffic signs.’s brand revolve around market penetration. Standard Insurance Co. product development and market development. FINANCIAL PROJECTIONS .2. Molding Competent Employees in obtaining highest insurance qualification The recommended strategies in molding competent employees of Standard Insurance Co. Inc. Together with MMDA it will help to increase awareness in advocacy of safety driving. 3.’s brand revolve around market penetration and market development. 5. The specific strategies are research and development of product line. Improve Excellent Service and add value to the customer’s money The recommended business strategies from the strategy formulation chapter are market penetration. Secondly. The specific strategies are to have extreme marketing strategies. 4. Achieve a higher rank in Non-life insurance category When Gross Premiums is concerned. Together with Land Transportation Office it will help to penetrate the market. The specific strategies are trainings and career development through job rotation. Inc.

The action plan for Standard Insurance Co.926.413. Double Standard Insurance Co. to achieve its strategic objectives of growing the net income to P 5.481.566.48548 16 2008 1. CHAPTER 8 – ACTION PLANS AND DEPARTMENTAL PROGRAMS In this section.463.) Briefing and They will know Branches Review of how much they Company’s will target for .5827 5 2006 135.947.8 82 0.2207156 96 22.653289 308 65.2832287 2 28. Inc.92843 044 % of Increase or Decrease Conclusion: The strategies recommended by the researcher are projected to gradually enable the Standard Insurance Co.322871 95 71.67712 805 2009 5.938 exceeding the net income of previous years. 318 0.926..67106 924 2007 342.51451 84 60. is given as follows: 6. Inc.4172 5 14.071569 56 77. YEAR NET INCOME 2004 103.0 26 0.481.. the researcher established the specific business action plans for each strategy developed in the previous section. 938 0. Inc. The Financial projections below was based on the strategic objectives and proposed strategies on the different aspects of the business established in the previous chapters.85417 25 85. Inc.32893 076 34.209.8 29 0.691. The action plans are discussed based on the strategic objective and strategy it supports.395145 184 39. The period covered is 2004 to 2009. 1.The researcher established a forecast of the Net income of Non-life Insurance of Standard Insurance Co. market revenue share in Non-life insurance by 2009 Key Strategy: The specific strategies are to give a quota for agencies and branches target premiums Strategic Expected Program Output Timetable Persons/Unit Responsible June 08-July 08 Management. Agencies. 764 2005 88.

Technical product and Services is being May08-July services study for 08 compare its recommendation . Branches 7. Marketing The company’s agencies and branches will do the job 3. Agencies.performance next year 2009 last year 2007 2. Finance.) Rewarding Ceremony for best in production Rewarding and Giving recognition for the agencies and branches achieving the best production June08-July 09 Marketing.) Monitor the company’s new performance Monitor the premiums that can be earned July 08-May 09 Finance 4. Agencies.) Execute the business proposal July 08-May 09 Management. Improve Excellent Service and add value to the customer’s money Key Strategy: Research and Development of Product and Service Lines Strategic Expected Persons/Unit Program Output Timetable Responsible Marketing. 1. Production. Branches.) Review Product and Management.

Expected Persons/Unit Output Timetable Responsible May 08Marketing.08Dec.June 09 Marketing . Direct Advertising with Target Consumer May 08. Management.) Test the process stability. Branches Marketing.08 Jan. Branches 8. 09 Oct. Management.) Launch and Promote the new improved products and services s Actual test of marketability Analysis of marketability New improved products and services July 08-Oct. Analysis of June08 Finance Brand Awareness to the Consumer Strategic Program 1. and marketable for the product 3.09-July 08 Marketing.) Review and Briefing of Company’s Marketing Efforts 2. Agencies. Technical Marketing.viability 2. Increase Brand Awareness Key Strategy: Extreme marketing strategies.) Increase Marketing efforts through free kits on safety driving Together with Land Transportation Office and an advertising effort through traffic signs. Production. Agencies.) Review improved products and services 4.

June09 Human Resource Dec.June 08 Human Resource May 08.June 09 Human Resource .) Raising the standard of Hiring employee 3.) Evaluation of Marketing Efforts Analysis In changes of production and volumes of premiums earned in finance Marketing and Finance June 08-June09 9.) Review and Analysis of Manpower in the Company 2.Together with MMDA 3.) Conduct Seminars and Teambuilding Analysis of career development in the company Competent Employee Increase of Depth Experience May 08.08 . Molding Competent Employees in obtaining highest insurance qualification Key Strategy: are trainings and career development Strategic Expected Persons/Unit Program Output Timetable Responsible 1.

to monitor and control strategies implemented. the researcher established employees Training as goal and it can be measure through the product of competitive employees in working efficiently and effectively. . the firm may immediately address the problem and give the necessary remedies to correct it. On the Financial Perspective. In order to improve the products and services. On the Customer Perspective. On the Internal Business Perspective. Inc. it is important that the firm monitors the results so that whenever a problem arises. The balance scorecard covers the following perspectives: financial. customer and internal business. the researcher established a framework for Standard Insurance Co. the researcher established income growth as the main goals to measure. it can be measure through feedbacks and loyalty.CHAPTER 9 – STRATEGY MONITORING AND CONTROL In this section. The growth can be monitored by historical analysis of checking the income of the previous years. Increase Brand Awareness will help the customer perception of the company. Financial Perspective Goal Measures Income Growth Actual Income versus Target Customer Perspective Goal Measures Improved Service Customer Feedback and and Products Satisfaction Increase Brand Awareness Customer perception Internal Business Perspective Goal Measures Competitive Employees Training Employees In every implementation.

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