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PARTNERSHIP FOR QUICK TO MARKET ENTRY

PARTNERSHIP FOR QUICK TO MARKET ENTRY. JCG CONFERENCE SEPT, 2009 Steven Weiss, SVP LOTSolutions Jonathan Yee, SVP Chartis Insurance. AGENDA. Introductions and Overview Discussion on Topic Product Development Cycle Times Partnership vs. Outsourcing Aspects of an Effective Partnership

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PARTNERSHIP FOR QUICK TO MARKET ENTRY

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  1. PARTNERSHIP FOR QUICK TO MARKET ENTRY JCG CONFERENCE SEPT, 2009 Steven Weiss, SVP LOTSolutions Jonathan Yee, SVP Chartis Insurance

  2. AGENDA • Introductions and Overview • Discussion on Topic • Product Development Cycle Times • Partnership vs. Outsourcing • Aspects of an Effective Partnership • Case Study • Questions

  3. QUESTIONS ON NEW PRODUCTS • How important are new product introductions to achieving your sales goals? • What percentage of new product introductions succeed? • How important is speed-to-market for new product introductions?

  4. ANSWERS • Some insurance companies estimate that new products represent 25%+ of new sales. • Less than 30% of new products achieve their expected results. • Speed-to-market is VITAL for achieving your sales goals.

  5. WHAT TAKES LONGER? • New home construction – average home? • Having a baby? • New insurance product launch from concept to in market?

  6. CYCLE TIMES • New home construction 6-9 months. • Delivery 9 months. • New insurance product 9-12+ months.

  7. WHY DOES IT TAKE SO LONG? • Poor initial definition of opportunity. • Competition for internal resources. • Competing internal priorities. • Squeezing a round peg in a square hole.

  8. WHAT’S THE SOLUTION? • Partner with an outside expert for specific functionality.

  9. 6 STEP PROCESS • Product concept, definition and expectations. • Pricing and design. • Filing and approvals. • Marketing and distribution. • Fulfillment and service. • Analysis and reporting.

  10. IS PARTNERING THE SAME AS OUTSOURCING? • Outsourcing is subcontracting a process to a third party company with the intent of lowering cost or making better use of time and expenses. • A partnership is a long-term strategic relationship between customer and supplier based on achieving best practices and sustainable competitive advantage.

  11. ASPECTS OF AN EFFECTIVE PARTNERSHIP • Common vision. • Strategic leadership. • Clearly defined roles. • Mutual trust. • Efforts towards cultivating the relationship. • Communication – open and frequent. • Information exchange.

  12. ASSESSING A PARTNER • What is their role? • What do they contribute to the relationship? • What drives their interest and commitment? • What concerns them? • How important is the relationship to them? • What benefits do they bring? • What are the costs and risks to them?

  13. CASE STUDY Chartis Insurance

  14. CHARTIS INSURANCE • Chartis began in 2001. • Experience as an underwriter for large cases and agent distribution. • Limited domestic experience with DR sold product. • Corporate resources focused on core business. • Looking for revenue opportunities.

  15. CHARTIS INSURANCE • Opportunity • IMO had successfully Beta tested a DR product. • IMO was seeking an underwriter. • IMO had proven track record in DR distribution. • One product. • One market – credit card files. • One channel – outbound telemarketing.

  16. CHARTIS INSURANCE • Dilemma • Chartis liked the DR business model. • Chartis understood the revenue potential. • Internal resource constraints. • High volume transaction processing and service not a core competency. • What to do?

  17. CHARTIS INSURANCE • Options • Walk away. • Lost opportunity. • Build internal capacity. • Time and cost. • Resource strain. • Buy capability. • Time and cost. • Partner with others.

  18. CHARTIS INSURANCE • An easy decision to make. • Establish partnerships • Distribution – IMO. • Marketing/sales –IMO. • Administration and service – TPA.

  19. CHARTIS INSURANCE • Today • 5 IMO partners • 25 products plus versions • All DR channels • Multiple markets • 1.7MM policies in force • 1.4MM new annual enrollments

  20. CONCLUSION • You can’t be all things to all people. • Do what you do well and partner with other experts for what they do well. • Pick a partner with aligned objectives. • Beat the competition to market. • Be a star.

  21. Q&A THANK YOU Steve Weiss, sweiss@lotsolutions.com Jonathan Yee, jonathan.yee@chartisinsurance.com

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