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Competition of Insurance Companies

Information about the insurance market at a glance

Local private insurance companies dominate the insurance market more common than joint venture (joint venture).
Increasing the marketplace part of local insurance companies than a articulation venture because it is generally a joint venture targeting specific markets and market different from local insurance companies.

Local insurance companies dominate because more aggressive market penetration into areas while the joint venture only big city.

Five force model is a business strategy that is used to perform the analysis of the industrial structure. The analysis is based on five competitive forces are:

The threat of a substitute product
How dyantolife substitution for insurance? Are consumers can easily obtain substitute goods? The more close substitutes, then the customer can switch easily. Force is influenced by several factors such as switching costs, the tendency for substitution, production differentiation, together with more
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The threat of the entry of new competitors
How difficult / easy for new competitors to get into your industry? This force is influenced by the brand equity, the barriers to entry such every bit patents, etc., distribution, or core competence of a particular skill, economies of scope, cost advantage, together with more.

The bargaining power of customers
How is the strength of your customers? This force is influenced by: the publish of buyers, the concentration of buyer, buyer switching costs, availability of items, big order buyers, cost sensitivity, degree of differentiation, and thus on.

With marketing and marketplace penetration tactics that many insurance markets so customers can get a lot of choices to purchase insurance in add-on to our company, if the acquisition or marketing teams are not careful in taking the market it will compete.

The bargaining power of suppliers
Supplier is the house where we purchased inputs used for production materials. Force is determined by several factors including: cost of switching to another supplier, supplier number, supplier concentration, availability of input substitution, differentiation level inputs, up to the bird of supplier relationships.
  • Supplier of insurance companies over the custodian bank. If the publish of custodian banks more so we could have more alternatives in choosing a bank and custodian banks could choose higher involvement rates, lower costs together with better service.
  • The selection of investment products as much as return on bonds, mutual funds, money market, equity could be an alternative choice of investment companies that can return a higher member.   

The intensity of competitive rivalry
How does the intensity of competition in the insurance company? The more the publish of competitors, with quality products and competitive prices, the higher the level of competition. Force is determined by several factors, including: the publish of competitors, the departure inwards quality, client loyalty, production differentiation, cost differences, exit barriers, and thus on.

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