New products for Insurance Business

McKinsey
Recent activity on Apr 17, 2018
3 Answers
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Anonymous A asked on Apr 17, 2018

Hi everyone, just going through McK interviews - had a question around brainstorming new products for an insurance business - couldn't think of any really good or creative ideas here, as my understanding of insurance businesses was pretty straightforward... Does anyone have any good ideas here?

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Carlos replied on Apr 17, 2018

Hi!

I am not expert, and maybe some of my contributions are not new, but just wanted to contribute. In addition to suggestions of others, I would think of two different buckets:

1. Businesses to leverage the capabilities of an insurance company:

  • Data analysis: insurance companies record a lot of data (e.g. for a car insurance, car model, driver age, location, driven miles per year, frequency of accidents) that could be sell to third companies.
  • Private investment fund: insurance companies have expertise on investing.

2. Businesses to reduce weaknesses of the insurance company (basically to reduce claims/costs):

  • Private security
  • Maintenance services
  • Repair services
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Vlad
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updated an answer on Apr 17, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Think of the digital and emerging businesses:

  1. Insurance for AirBnb hosts
  2. Insurance for Uber drivers / passengers
  3. Insurance for Tech / cybersecurity issues

Also, think of the new ways to provide insurance:

  1. Shared insurance
  2. Usage-based insurance
  3. Insurance for niche segments (frequent travelers, extreme sports, etc)

Best!

(edited)

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Anonymous A replied on Apr 17, 2018

Thanks mate! very creative / good ideas

If the interviewer was looking for businesses outside insurance though, does anything come to mind? I suppose credit card tie ups would be one..

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