Actividad

A00839823
Andrés Restrepo García

Creating prototypes

Fecha de entrega:
14 de abril del 2024
 SWOT ANALYSIS

For the internal factors of Afirme seguros, we are going to compare ourselves with Mercado
Pago (insurance line) and with Axa, which according to the interviews is one of the most
common insurance companies contracted by people of Tec de Monterrey.
● Internal factors
○ Strength
■ Better insurance and more recognize insurance (Mercado Pago)
If we look at the insurance company partnered with Mercado Pago, which
is Prudential, we see that it is a relatively unknown company in the
insurance world and actually has little experience, being even 100%
digital. This gives Afirme Seguros an advantage as it has its own offices,
which inherently provides greater security, prestige, and seriousness, thus
giving us an image of better service and well-founded with our long
experience and trajectory.
■ More quantity of insurance’s range (Mercado Pago and Axa)
Our wide variety of insurance policies, totaling 8, surpasses the 5 and 4
offered by Mercado Pago and AXA. This gives us a competitive
advantage in the market, allowing us to attract a larger number of
customers through the extensive range of services we offer.
■ National market focus (Mercado pago and Axa)
Being a 100% Mexican company, Afirme Seguros is uniquely positioned
to understand the needs of our people and country better than any other.
This not only gives us a significant advantage in national recognition but
also in understanding the challenges faced by the average Mexican citizen.
This sets us apart from AXA, a French-origin company, or Mercado Pago,
an Argentine-origin company.
■ Its own digital bank (Mercado pago and Axa)
The strongest advantage is the vast conglomerate of Grupo Afirme, which
allows us to form alliances between our companies more easily and
without spending money on negotiations. Here comes into play Billu
Bank, which would be similar to the Mercado Pago app. The only
difference is that while Mercado Pago forms an alliance with another
private company, which can leave whenever it wants, we only need to

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 collaborate between two of our existing companies, Billu Bank and
Afirme Seguros, giving us that competitive edge in the market.
○ Weaknesses
■ Not recognized internationally (Axa)
A significant weakness is that despite being nationally recognized as a
100% Mexican company, we lack the prestige of being an international
company with operations in multiple countries. This is often of great
importance to certain segments of clients.
■ Not a recognized digital bank or app (Mercado pago)
A disadvantage, which is actually an advantage that we are underutilizing,
is the fact that despite having our own digital bank capable of competing
with Mercado Pago, the company has not made an effort to give it a name
and make it as recognized as Mercado Pago.
■ Little focus on any specific insurance (Axa and Mercado pago)
Despite previously mentioning it as an advantage, it's important to note
that "jack of all trades, master of none" applies here. Sometimes it's better
to be a company recognized for excellent work in specific areas, thus
providing quality service in those areas and disregarding less important
sectors for the company. This is evident when comparing Mercado Pago or
AXA, which offer fewer than 5 types of insurance, while Afirme Seguros
offers 8.
■ Low and late process (Mercado pago and Axa)
According to online reviews of the company, one of the major drawbacks
is the delay, with reports indicating that the process takes a long time and
that sometimes calls go unanswered. It would be wise to consider the
previous option of reducing the number of insurance types to reorganize
the necessary personnel in certain positions, thus improving customer
service in that aspect and finding ways to streamline the process to make it
less bureaucratic and time-consuming.
● External factors
○ Opportunities
■ Digitalization:
Technology is transforming the insurance industry in Mexico, offering
opportunities to improve operational efficiency, reach new customers
through digital channels, and develop innovative products. Adopting tools

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 such as artificial intelligence, data analytics, and process automation can
help insurance companies enhance customer experience and reduce
operational costs. (SHRIRAM GENERAL INSURANCE CO. LTD.-
2024)
■ Growing of market
The insurance market in Mexico continues to show considerable growth
potential, as a significant portion of the population remains uninsured.
This opportunity is particularly evident in areas such as life insurance,
health insurance, and pensions, where there is a growing demand due to
increased awareness of the importance of financial protection.(IDB-2007)
■ Older population
The aging population in Mexico presents an opportunity for growth in life
insurance, health insurance, and retirement-related products. Older
individuals often seek financial protection to ensure their well-being as
they age, creating a growing demand in these areas of
insurance.(NIH-2016)
■ Favorable regulation
Regulations in Mexico are evolving to promote competition and
transparency in the insurance industry. Regulatory reforms may open up
new opportunities for the entry of new market participants and foster
innovation in insurance products and services.(The legal 500 )
○ Threats
■ Competition from Established Players:
Established insurance companies in Mexico pose a significant threat to
new entrants and smaller insurers. These companies often have strong
brand recognition, extensive distribution networks, and significant market
share, making it challenging for smaller players to compete.(Global Data -
2022)
■ Economic Volatility:
Economic volatility and fluctuations in the Mexican economy can pose a
threat to the insurance industry. During economic downturns, individuals
and businesses may prioritize essential expenses over insurance premiums,
leading to a decline in demand for insurance products. (SOA - 2012)
■ Regulatory Changes:

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 Regulatory changes or shifts in government policies can present
challenges for insurance companies in Mexico. Changes in regulations
related to capital requirements, taxation, or consumer protection may
increase compliance costs or restrict certain business practices, affecting
profitability and operations. (OECD)
■ Emerging Risks and Catastrophic Events:
Emerging risks such as cyber threats, natural disasters, and pandemics
present significant challenges for the insurance industry in Mexico. These
events can lead to an increase in insurance claims, higher payouts, and
volatility in underwriting results, potentially impacting the financial
stability of insurance companies.(Munich RE - 2024)

Strategies
1) One strength that can be leveraged to the greatest advantage is the fact that Grupo Afirme
has several companies. From this, an alliance can be formed between Banco Afirme,
Billu, and Afirme Seguros; with Banco Afirme being the largest company, it should act as
a gateway for advertising so that all its users adopt and use Billu Bank, explaining to
them the benefits this digital bank brings (this can be done through text messages, calls,
promotions, or advertisements). At the same time, the insurance company can promote its
services virtually within the same application, thus creating a perfect network between
Afirme Banco, which provides liquidity, Billu Bank, which provides digitization and
speed, and Afirme Seguros, which offers good insurance.
2) To carry out a market study with the current clients of all companies within the Afirme
Group, in order to gather as much information as possible about insurance needs over a
period of 6 months, and to offer this great service to the current clients of the other
companies belonging to Afirme Seguros, these decisions will be made through data
analysis and a deep market study of each of the clients of each of the companies within
the Afirme Group.
3) To carry out a strong marketing campaign over the next 5 years, where the main
insurance to offer is life insurance for individuals over 60 years old or nearing retirement
age, taking into account that Mexico is becoming a country with an increasingly older
population, giving us a great opportunity and a larger market to target. This marketing
campaign would aim to convey to the next generation of retirees that 60 is the new 20
and that with their Afirme life insurance, they can enjoy their later years to the fullest,

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whether in maximum tranquility or traveling and discovering the most beautiful corners
of Mexico.

These three strategies would undoubtedly make Afirme Seguros a worthy competitor in
the insurance market, as we combine several important factors that many other insurers
do not have. First, we target a strong market niche, the future retirees, but we approach
them with a marketing campaign where the message is: live as you want in your later
years, regardless of the risk. At the same time, the collaboration between companies
within the same group gives us access to something as valuable as information, and if we
manage to keep the circle of clients within our companies, it will allow us to be more
precise than ever and know exactly what the Mexican customer is looking for in every
aspect. And to go hand in hand with digitalization, we also have our digital bank,
streamlining and making bureaucratic processes much easier for the younger generation.

Ideation process followed

1) Investigate about Afirme seguros, its story and mvv
The first step, without a doubt, was to get to know and research a little more about
the history and the core values ​of the company, as this is of utmost importance to
understand the company's mindset and the purpose behind each decision they
make. This is to guide me on the path to brainstorming ideas.
2) Have a conference with Afirme seguros to know exactly what they want
Equally important was the conference, where they explained their clear goals and
objectives. From this, I could conclude that the company's biggest fear is
digitalization and new companies such as fintechs, which are coming to renew the
market. Without a doubt, they didn't want to fall behind this new wave in any
way, in order to stay afloat with a more digital generation that is less patient than
before. This gave us a basis, akin to Mercado Pago and its partnerships, to offer
quick insurance within 5-10 minutes through their app.
3) Do a research of the insurance market in mexico, competences and services
Once the company's main objective was taken into account, it was time to
research more about the insurance offered by Mercado Pago and other companies
in comparison with Afirme Seguros. Here, we concluded that Afirme Seguros has
always been the company with the largest number of insurance offerings, but
ironically, it wasn't even in the top 10 of insurers in Mexico. This led us to think

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 that perhaps this isn't the most intelligent approach if we want to be on the map of
insurers.
4) Do interviews to research more direct information of insurance’s customer
As a next step, we decided to directly ask recurring insurance service customers,
and we realized that the majority complained about delays and service
interruptions, as well as the price of some of their insurances, suggesting that it
would be better to lower the price a bit more and streamline the service to reduce
wait times.
5) According to the interviews and the goal of the company creates a new idea
to improve Afirme seguros company
And here is where the final idea arose, taking into account the problem and the
company's fear of falling behind in the fight against fintech and this new generation of
digital companies, as well as seeing Mercado Pago not only as a competitor with an
advantage, but also as a role model. Seeing the fact that customers are seeking and
needing agility, digitization, and speed, I decided to research a bit more about the
companies that belong to the Afirme Group, thus getting to know Billu, which is part of
the conglomerate of companies and is Afirme's digital bank. With this, I saw a great
opportunity: why not leverage our digital bank to offer our insurance there? People could
then quickly purchase insurance in 5-10 minutes without having to wait for a long time.
Our main advantage is that everything is under the control of our companies, giving us
greater control over the service we offer and provide. Unlike Mercado Pago, which is
only an intermediary with another insurance company, which has no relationship with
Mercado Pago.

This idea is creative as it combines digitization and speed with the company's experience
and track record in its banks, thus simultaneously increasing the number of people using
Billu Bank. There, we aim to offer more original life insurance options for younger
people, such as on-demand insurances or insurances for valuable items like computers,
cell phones, etc.
a. How does your proposal incorporate emerging technologies?
This proposal incorporates emerging technologies by leveraging the digital platform of
Billu Bank to offer insurance services. By allowing customers to quickly purchase
insurance in 5-10 minutes through a digital platform, we are utilizing emerging
technologies to streamline the insurance purchasing process and meet the demand for
digitization and speed in the market.

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b. Which social and technological megatrends are you following?
The social and technological megatrends that we are following include the increasing
demand for digital services, the rise of fintech companies, and the growing need for
convenience and efficiency in consumer transactions
c. What type of entrepreneurship initiative are you proposing? (environmental,
social, cultural, technological, or economic)
The entrepreneurship initiative proposed here is primarily technological, as it involves
leveraging digital platforms and emerging technologies to innovate within the insurance
industry. However, it also has economic implications, as it aims to increase the efficiency
and profitability of insurance services.
d. Mention the economic, ecological, and social impact indicators with which you
propose to measure the impact of your proposal. What are the interest groups that
this initiative will impact?
The economic impact indicators include increased revenue from insurance sales and
potentially lower operational costs due to streamlined processes. The ecological impact
may be minimal, as this proposal primarily involves digital transactions. Social impact
indicators include improved access to insurance services for customers, particularly those
seeking quick and convenient options. The interest groups impacted by this initiative
include customers, insurance agents, and the company itself.
f. What are the positive impacts identified from an ethical perspective?
From an ethical perspective, this initiative aims to improve customer convenience and
accessibility to insurance services. By offering quick and easy insurance options through
a digital platform, we are empowering customers to protect themselves and their assets
more efficiently. Additionally, by keeping everything under the control of our companies,
we can ensure transparency, reliability, and trust in the insurance products and services
offered.
Bibliography:
- SHRIRAM GENERAL INSURANCE CO. LTD. (2024, 6 febrero). How is

technology changing the insurance industry? - Shriram General Insurance.

https://www.linkedin.com/pulse/how-technology-changing-insurance-industry-shr

iram-677vf/

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- De CV, A. G. F. S. (s. f.). Seguros.

https://www.afirme.com/Personas/Seguros.html

- Mercado Pago México | La cuenta digital de Mercado Libre. (s. f.).

https://www.mercadopago.com.mx. https://www.mercadopago.com.mx/

- AXA Seguros México | Sitio Oficial - Portal Público - b2c-digitalportals. (s. f.).

Portal Público. https://axa.mx/

- Morales, F. S. (2023, 14 septiembre). ▷ Afirme seguros opiniones, comentarios y

quejas - ASMX. Ahorra Seguros.

https://ahorraseguros.mx/seguros-de-autos/articulos/afirme-seguros-opiniones/

- A growing insurance market. (2007). IDB. Recuperado 14 de abril de 2024, de

https://www.iadb.org/en/news/growing-insurance-market

- Aging in Mexico: Population Trends and Emerging Issues. (2016). NIH.

Recuperado 14 de abril de 2024, de

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5881744/

- Comparative legal Guides | Mexico: Insurance & Reinsurance. (s. f.). Country

Comparative Guides | The Legal 500.

https://www.legal500.com/guides/chapter/mexico-insurance-reinsurance/#:~:text=

Insurance%20and%20reinsurance%20operations%20in,SHCP%E2%80%9D)%20

and%20the%20CNSF.

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- Competition and Related Regulation Issues in the Insurance Industry. (1998).
OECD. Recuperado 14 de abril de 2024, de
https://www.oecd.org/daf/competition/1920099.pdf
- The Effect of Deflation or High Inflation on the Insurance Industry. (2012,

febrero).

https://www.soa.org/globalassets/assets/files/research/projects/research-2012-02-e

ffect-deflation-report.pdf. Recuperado 14 de abril de 2024, de

https://www.soa.org/globalassets/assets/files/research/projects/research-2012-02-e

ffect-deflation-report.pdf

- Cyber Insurance: Risks and Trends 2024 | Munich Re. (s. f.).

https://www.munichre.com/en/insights/cyber/cyber-insurance-risks-and-trends-20

24.html

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