Group 5:

Annmaria Sunny – PGP/24/130

Kavyashree S – PGP/24/152
Laya – PGP/24/155
Mohammed Ishaan K B – PGP/24/161

CUVVA: Nandhini Balu – PGP/24/162

DISRUPTING THE MARKET

FOR CAR INSURANCE
BUSINESS MODEL CANVAS FOR INSURANCE INDUSTRY

● ● Reward safe
Underwriters
drivers by giving
● Agents, brokers
them lower
● Employees premiums and no
● IT providers claim bonus
● Market firms
● Agents and
Brokers Primary distribution channel
include the following -
● Salaried sales force
● Agents and brokers
● Bank network
● Car dealers

● Salary of staffs and employees ● Charge premiums for coverage

● Marketing and sales cost ● Invest those into other assets

2
 WHAT SEGMENTS OF CUSTOMERS
SHOULD CUVVA TARGET?
➔ Benefits of Cuvva from and to Sharers and Owners?
Sharers Owners
⦿ Pay as per use ⦿ Additional source of income
⦿ Reduced time to get travel for car owners if they want
insurance to rent out cars
⦿ Social Garage feature that ⦿ Infrequent drivers will be
allowed users to see which of able to save 500 Euro to 1000
their Facebook friends had Euro a year
cars available to borrow and ⦿ Transferable no claim
for how much discount
3
 WHAT SEGMENTS OF CUSTOMERS
SHOULD CUVVA TARGET?
⦿ Target segment for share is customers seeking car insurance for one hour upto 28
days (users- at least 19 years old, vehicle- not more than 15 years old)
⦿ Average person travelled miles is less in 2015 compared to 2002 which means it
has a declining trend
⦿ Cost of purchasing motor vehicle decreased overtime, which means increased
ownership
⦿ Since travelled miles are less and car ownership is more, there will be a number of
idle vehicles . So targeting sharers will help Cuvva. Capacity is there which means
making demand will help Cuvva to increase their revenue
4
 How would you distinguish BMC for
Cuvva
⦿ Cuvva is an insurtech start-up that
offers pay-as-you-go insurance or
hourly car insurance schemes for
customers who want to purchase
temporary insurance to drive using
a digital business model.
⦿ The service was offered through
app, customers paid premium via
debit or credit cards or apple pay
from which the company took
20%.
⦿ Once the customer provided all the
information. The app displayed
prices ranging from one hour to 28
days and the customer could
proceed if they are ok with the the
prices and terms and conditions.
⦿ Customer Segment : Cuvva targeted customers at least of age 19 and above and vehicles
age not older than 15 years. But traditional industry because of ambiguity and
conventional insurance delivery structure do not cater to millennial and younger
demographics.
⦿ Marketing: Cuvva used word of mouth, and keeping the charges involved Cuvva was
conscious of not being a price comparison website. They used two way referral codes.
They used Facebook as a platform to get to know low cost rentals details using The
Social Garage Feature, whereas traditional insurance industry have listed themselves in
price comparison websites.
⦿ Sales and Distribution : Cuvva has established business model for owners by selling
them premiums from $25 to $37. Cuvva also planned to create rating model , they
developed their own infrastructure that included brokerage,price-comparison, software
house all in a single layer. Cuvva also paid 20% on insurance paid through app. Where as
Traditional Industry is working with some intermediary between insurance provider and
customer
⦿ Product Undertaking, Administration and contract Servicing: Cuvva has only 2
Underwriters to avoid expense and simplify the system. In terms of policy Admin and
contract support are given to client, the cost for these services are received. As the service
starts in an hour’s drive, the team works to process every claim and completes a
comprehensive review to allow settlement
5
 Underwriting, Referral codes, Sharers: To
Independent web hosting, For Sharers: Save customer support to borrow someone’s
Contract time and money, handle claims social
dealers. car at short notice,
servicing, sales instant travel media and email
Underwriters insurance, pay as communication.
available for ages
support, above 19 years.
per use, mobile first
distribution Owners: For
app, social garage
feature to help find those who use
trustworthy lenders. their vehicles
App, staff data,
For Owners: Cheap Word of mouth, infrequently and
content in-house fee,for infrequent Direct sales by call or want to rent,
lawyers use, no claim email, software available for ages
discount, price platform above 21 years
transparency

Software development, Management and marketing and 20% of insurance premium and Base charges,
sales, salary for staffs commission based.

Business Model Canvas of Cuvva

6
HOW SHOULD ADMIRAL
RESPOND?
⦿ Admiral is a direct insurer with a very low cost model which can be
leveraged to further increase market share
⦿ Improve the Admiral app by identifying pain points and incorporating
feedback from customers
⦿ Enhancement of risk assessment capabilities to offer more targeted
policies and discounts (requires access to data)
⦿ Adoption of pay-as-you-go model with added offering of comparison
between policies (like that offered by Confused.com)

7
THANK
YOU
8