SafeGuard Insurance - Optimizing Policy Offerings.pptx

An-App-for-On-Demand-Automobile-Wash-and-Detailing.pptx

1. Group Assignment A Cost Analysis Approach SafeGuard Insurance - Optimizing Policy Offerings Amit kumar chaudhary - 23020841090 Triloki kumar chaudhary - 23020841225 Hanu Warwade - 23020841124 B H Akash - 23020841130 Rohit Nagrale - 23020841092 Aniket R Bade - 23020841195 Presented By:

2. Introduction to SafeGuard Insurance Current Challenges and Objectives Financial Review of Existing Policies Proposed Changes and Optimization Goals Assignment Questions Overview Conclusion Recommendation Overview

3. About SafeGuard Insurance: Established in 2010, based in Kolkata, India. Specializes in health, life, and property insurance. Current Challenges: Facing market saturation and increased competition. CEO Aditi Sharma aims to optimize policy offerings. Objectives: Enhance customer value and operational efficiency. Comprehensive review in the fiscal year 2022. Introduction to SafeGuard Insurance

4. Key Observations: Policy Administration Costs: INR 100 million. Claim Expenses: INR 200 million (50% health, 30% life, 20% property). Variable Overheads projected at INR 25 million. Fixed Overheads for technology upgrades: INR 40 million. Optimization Goals: Reduce administrative and claim expenses. Maintain competitive pricing and high customer satisfaction. Introduction to SafeGuard Insurance

5. Market Challenges: SafeGuard Insurance is currently facing challenges due to market saturation and increased competition. CEO's Observations: CEO Aditi Sharma has noticed a plateau in policy renewals and new policy sales, which can be attributed to the competitive landscape. Optimization Objectives: The primary objective is to optimize policy offerings. This initiative aims to address the challenges, ensuring sustained growth and relevance in the insurance market. Current Challenges and Objectives

6. Need for Change: The need for change is evident to stay ahead of competitors and meet evolving customer expectations. Strategic Approach: SafeGuard aims to strategically redesign policy offerings to meet current market demands . Balancing Act: The challenge lies in optimizing policies to reduce costs without compromising on customer value and service. Expected Outcomes: Anticipate increased policy renewals and new sales. Enhanced customer satisfaction and operational efficiency. Current Challenges and Objectives

7. Policy Administration Costs: Estimated at INR 100 million. Includes staff salaries, IT maintenance, and office overheads. Claim Expenses: Total claims in the previous year: INR 200 million. Distribution: 50% health, 30% life, 20% property. Variable Overheads: Projected increase by 10% to INR 25 million. Covers marketing, customer support, and claims processing. Fixed Overheads: Budgeted at INR 40 million. Focus on technology upgrades for improved efficiency. Optimization Goals: Redesign policies to reduce costs. Maintain competitive pricing and customer satisfaction. Financial Review of Existing Policies

8. Cost Reduction: Redesign policies to cut administrative and claim expenses. Competitive Pricing: Maintain competitiveness in the market. Customer Satisfaction: Uphold high customer satisfaction despite cost reductions. Strategic Adjustments: Strategically align policies for cost-effectiveness and customer value. Efficiency Focus: Enhance operational efficiency in policy administration and claims processing. Expected Outcomes: Anticipate improved financial performance and increased policy renewals/new sales. Proposed Changes and Optimization Goals

9. Assignment Questions Overview A. Cost Sheet Preparation

10. Assignment Questions Overview B. Marginal Cost Statement Total of Marginal costing (A)+(B) = 395

11. Assignment Questions Overview Break even points = FIXED COST CONTRIBUTION C. CVP Analysis We are assuming the sales of safe graud insurance is (395 MILLION ) because in question there is nothing mention about sales Variable Expenses = 200 Million Fixed Expenses = 40 BEP = 1

12. Assignment Questions Overview D. Variance Analysis:

13. Cost analysis reveals: High claim expenses and potential for cost reduction in administration and variable overheads. Market saturation and increasing competition necessitate differentiation and value proposition. Recommendations: Cost Reduction: Analyze staff workload, IT costs, claims processing efficiency, and marketing ROI. Implement cost-saving strategies in each area. Product Optimization: Develop targeted, value-driven products with flexible features to attract customers and potentially reduce claim risks. Technology Utilization: Monitor new tech's impact on efficiency, cost savings, and customer satisfaction. Conclusion

14. THANK YOU!