This work contains an entire business plan of the start-up-company Bee-sure AG including the financial forecast for the first five years and the further plans for development. The company's headquarter is planned to be in Cologne, Germany and the legal form will be an insurance corporation (AG). After founding, the company will apply for a property & casualty (P&C) insurance license in Germany at the Federal Financial Supervisory Authority (BaFin). Bee-sure AG will be an entirely new type of insurance company in Germany. By combining high technology with efficiency and transparency Bee-sure will be the first fully digitalized insurance company, meaning completely without paperwork. By this way an insurance experience is created that is very fast both in the process of applying and the process of claims handling. In addition, the products will be more individual and flexible but still very affordable.
Table of Contents
1 Introduction
1.1 Problem and objective
1.2 Scope of work
2 Company Description
3 Vision & Mission
3.1 Vision
3.2 Mission
4 Product & Service Description
4.1 Products
4.1.1 Living
4.1.2 Liability
4.1.3 Disability
4.1.4 Situational insurance products
4.2 Service offerings
4.2.1 Living service offerings
4.2.2 Disability service offerings
4.2.3 Additional services
5 Industry Analysis
5.1 Industry overview
5.2 Barriers to entry the market
5.3 External influencing factors (PEST analysis)
5.3.1 Political factors
5.3.2 Economic factors
5.3.3 Social factors
5.3.4 Technological factors
6 Marketing Plan
6.1 Social Media Marketing
6.2 Referral Marketing
6.3 Cross-selling with predictive Marketing
7 Sales Plan
8 Competitive Analysis
8.1 Competitor Overview
8.2 Competitor Analysis (SWOT-Analysis)
8.2.1 Strengths
8.2.2 Weaknesses
8.2.3 Opportunities
8.2.4 Threats
9 Operations Plan
9.1 Location and Infrastructure
9.2 Policy administration and claims handling
9.3 Operational team
10 Management Team
11 Financial Plan
11.1 Financial Summary
11.2 Current Ownership Summary
11.3 Funding Request / Terms of Investment
11.4 Sources and uses of funds
11.4.1 Sources of funds
11.4.2 Uses of funds
11.5 Exit Strategy
11.5.1 Management-Buy-Out / new long term investor
11.5.2 Takeover by a competitor
11.6 Projected Financial Statements
11.6.1 Costs before start of operations
11.6.2 Financial assumptions
11.6.3 Projected profit and loss statements
12 Conclusion and Outlook
Objectives and Research Themes
The primary objective of this business plan is to outline the strategy for establishing Bee-sure AG, a fully digitalized insurance company in Germany, and to demonstrate its financial viability through a five-year forecast.
- Analysis of the digital transformation potential in the German insurance market.
- Development of a cost-efficient, fully automated business model focusing on claims handling and customer-centric products.
- Implementation of innovative marketing strategies, including social media and predictive marketing, to acquire and retain customers.
- Assessment of industry-specific entry barriers and operational requirements.
- Creation of a comprehensive financial plan, including funding requirements, exit strategies, and projected profit/loss statements.
Excerpt from the Book
9.2 Policy administration and claims handling
The majority of the policy administration processes will be performed by the customers themselves in the app. This is supported by bots and service-clerks. Due to recent technologies, more and more of the service-clerks’ work can be done by bots. The Japanese Insurance company Fokuta mutual life insurance has recently replaced 30 % of their clerks by artificial intelligence (AI) bots.
The claims handling process will play a key role. According to an Accenture study, 83 % of insurance customers that are not satisfied with their claims settlements are willing to change their insurer. In general, the customer’s likelihood of an insurer change increases from 22 to 41 % in the case of a claim. Today’s customers are not willing to have long paper-based correspondence; especially not in the case of a loss that can be nerve-racking anyway. As a consequence this process will be crucial in order to acquire and bind customers.
Bee-sure will automate claim-handling as far as possible, using AI bots. Customers file their claim in the app via a form or in dialog with a chat-bot. The algorithm analyzes the data, photos and invoices, and determines the likelihood of a fraud. If no suspicious activities are identified, the claim is handled automatically and the damage sum is transferred in seconds. This process is already in operation at the American insurer Lemonade (see figure 2).
As a result, the claim handling process will be much faster and more comfortable for the customer at significantly lower costs for the insurer.
Summary of Chapters
1 Introduction: Defines the current challenges of digitalization in the German insurance industry and sets the objective for the Bee-sure AG business plan.
2 Company Description: Details the foundation, legal form, management structure, and the innovative technological approach of Bee-sure AG.
3 Vision & Mission: Defines the company's core ambition to revolutionize the market through digital-first, customer-oriented products.
4 Product & Service Description: Outlines the core insurance products and the comprehensive, non-insurance-related service offerings provided via the app.
5 Industry Analysis: Examines the German insurance market, entry barriers, and PEST factors impacting the business environment.
6 Marketing Plan: Describes strategies centered on social media, referral programs, and predictive marketing based on user data.
7 Sales Plan: Details the online-only distribution model supported by self-learning chat-bots.
8 Competitive Analysis: Provides a SWOT analysis of Bee-sure relative to existing market players.
9 Operations Plan: Covers infrastructure requirements, automated claims handling, and human resource planning.
10 Management Team: Introduces the founding management and their respective responsibilities.
11 Financial Plan: Presents the funding requirements, exit strategies, and five-year financial forecasts.
12 Conclusion and Outlook: Summarizes the strategic feasibility and potential of Bee-sure AG within the German market.
Keywords
Digital Insurance, Bee-sure AG, InsurTech, Claims Automation, AI Bots, Customer Loyalty, Business Plan, German Insurance Market, Predictive Marketing, Profitability, Reinsurance, Start-up, Cost Efficiency, Digitalization, Premium Calculation
Frequently Asked Questions
What is the core concept of Bee-sure AG?
Bee-sure AG is designed as the first fully digitalized insurance company in Germany, focusing on an automated, paperless, and customer-centric experience that operates independently of traditional, advice-heavy insurance structures.
What are the primary themes covered in this business plan?
The plan covers digital market opportunities, product development, service diversification, operational automation, marketing strategies, and comprehensive financial projections.
What is the central research objective?
The goal is to demonstrate that a start-up with modern technology and lean cost structures can enter the regulated German insurance market by solving customer dissatisfaction with current, slow-paced insurance services.
Which scientific method is utilized?
The work employs market analysis using secondary data, PEST analysis for external factors, and a SWOT analysis for competitive evaluation, combined with rigorous financial modeling and human resource planning.
What does the main part of the document address?
The main part details the company's innovative business model, including its modular insurance products, AI-driven claims handling processes, marketing strategy focused on social media, and the financial roadmap.
Which keywords best characterize this work?
Keywords include Digital Insurance, InsurTech, Claims Automation, AI Bots, Business Plan, and Cost Efficiency.
How does Bee-sure handle claims differently from traditional insurers?
Unlike traditional insurers that may profit from denied claims, Bee-sure uses a fixed fee model where surpluses are returned to customers, and claims are processed automatically by AI bots to ensure speed and transparency.
What is the significance of the "payback" aspect mentioned in the title?
The "payback" concept refers to the strategy of returning excess premiums at the end of the year to customers who did not file a claim, thereby fostering customer loyalty and reducing insurance fraud.
Why are the entry barriers to the German insurance market considered high?
The market is strictly regulated by the BaFin, requiring significant minimum capital reserves and rigorous organization funds to cover administrative and operational costs during the initial years.
What is the projected financial outlook for Bee-sure AG?
The financial plan anticipates a foundation phase from 2018-2021, with the expectation of reaching a break-even point in 2020 and achieving a return on invested capital (RoIC) of approximately 10% by 2022.
- Quote paper
- Erik Somssich (Author), 2017, Bee-sure AG. A Digital Insurance Company with payback revolutionizing the insurance market, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/437735
