By Group - 7

PGP/25/256 Anannya Mishra

PGP/25/266 Devesh Kamle
PGP/25/273 Hariharan B
PGP/25/280 Kishan Nathani

BUSINESS MODEL OF THE
TRADITIONAL INSURANCE INDUSTRY
• The insurance sector works on security in the
future, formally called coverage.
• These companies get revenue from customers,
formally called insurance premiums, and then
reinvest in other assets or portfolios.
• Generally, agents, brokers, financial advisors,
bank networks, etc were leveraged to sell and
market their insurance policies.
• To access their customers' profit, mainly risk
and exposure of the insurance being covered,
they hire underwriters.
• These underwriters are then responsible for
determining the financial as well as technical
terms and conditions of the insurance being
formulated.
• The underwriters, thus facilitate the premium
reduction based on past safe driving incidences
of the customers.
01
RECENT CHANGES IN THE
TRADITIONAL INSURANCE INDUSTRY
• Introduction and market demand of vocational
insurance services which are mainly based on the
usage. Some of the organizations that offered the
same include Cuvva, Admiral.
• Change in the ecosystem of the customer
relationship, as in the case of Admiral. Organizations
are trying to create their own ecosystem by having a
direct relationship with the customers and bypassing
the need for agents, brokers, etc.
• Cutting down costs became a part of the lean
operating structure with insurance providers
developing new business and operation models
along with leveraging the privilege of online sales.
• An increase in buyers' power became a general
structure of these businesses and they were busy
luring the customers with new and flexible offers to
gain market share and increase the operating
revenue.
Key Partners Key Activities Value Proposition Customer Customer Segments
Cuvva Cuvva Cuvva Relationships Cuvva
• Customer Onboarding
• Underwriters • Checks on journey and customer • For Sharers: Hourly car Cuvva
• Customers seeking car
• Facilitation of Policy Issuance insurance sold through • Mobile Applications
• DVLA • Facilitation of Claim Settlement insurance for one hour
mobile apps for users who
Traditional Insurers up to 28 days
Traditional Insurers want to borrow or drive Traditional insurers manage
• Policy Design
Traditional Insurers • Customer Onboarding
somebody else's car relationships with their customers via • City dwellers who used
• DVLA • Underwriting • For Owners: Motor sales offices, telephone, email and the their cars infrequently
• Policy Issuance internet
• Search Engines • Claims Investigation and Settlement
insurance policy that can be
• Investment Management switched on or off
• Software House Traditional Insurers
• Brokers Traditional Insurers • Older (23 and above)
• Re-brokers Key Resources • Yearly motor insurance Channels car owners who have
Cuvva Cuvva
• Reinsurer plans that provide
• Mobile Applications
an extensive history of
• In-house software platform
• Technology Team comprehensive coverage • Word of Mouth being "good" drivers
but only insure the vehicle • Small independent car dealerships
Traditional Insurers
when the owner of the Traditional Insurers
• Policy design process and procedures
• Underwriting algorithms and technology vehicle is driving the car • Agents
• Sales Force
• Policy management system
• Brokers
• Investment management team
• Independent Financial Advisors
• Claims team
• Bank Network
• Car Dealerships, Workplaces and Stores

Cost Structure Revenue Streams

Cuvva Cuvva
• Technology Development, Hosting, and Maintenance Costs | Employee Salaries • Flat Monthly Fee (Cuvva for Owners only) | 20% of Premiums based on the time for which the car is used

Traditional Insurers Traditional Insurers

• Agent/Broker Commissions | Claims Payouts | Employee Salaries • Insurance Premiums | Additional Riders | Investment Income
 Experimentation at the edge Collision at the core Reinvention at the root
Digital Giants
Incumberents
Industry

Traditional Insurers
Tech Entrepreneurs

Cuvva should focus on its ‘Cuvva for Sharers’ proposition and especially focus on the
youth segment.
Car ownership is the lowest among the 18-29 age demographic and Cuvva is one of
the few companies that caters to this market. Cuvva is a tech entrepreneur since it is a new player in the space which has entered with a
The car sharing and rental market is projected to grow at 4% and this is a market tech-based offering that is purely digital. The insurance industry is placed under collision at
that is currently underserved. the core since the industry is changing how they do things – moving away from a
Cuvva can disrupt the industry by gaining market share in this segment first and then sales/broker-based model to a model where policies are issued and serviced digitally
move across segments to target the older segment that currently buys year long
plans which is being served by traditional insurance companies