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INITIAL CAPSTONE PROJECT PROPOSAL
Name:
Date of Proposal Draft:
Working Project Title: Strategic Issue Management in Insurance Companies (focusing US Insurance)
Initial Problem/Opportunity Statement
· What is the initial description of the problem(s) or opportunities to be addressed
According to PwC Audit and Risk Committee Survey 2017, the insurance industry is experiencing a threat due to over regulation, changing business standards, altered customer behavior, technological advancements and the potential competition from the new market entrants. The demand of 24 hour service by the customers and digital transformations are the most threatening challenges perceived by 35% of the insurance companies globally (PwC Insurance, 2017). These are considered to be most disruptive forces severely influencing the insurance business.
The New market entrants (like InsurTech) which are technically advanced perform business over automated core systems, are posing a threat for the existing players. In the next 5-10 years, the industry business model and the Insurance Companies are going to change dramatically, threatening the survival of most of the insurance Companies in their existing form. There are new standards in Accounting (like IFRS 17) affecting the way insurance companies do business and their products (PwC Insurance, 2017).
Objectives
To identify the cu
ent problems in strategic issue management of the Insurance Companies mainly in US; and To recommend measures and guidelines to mitigate these problems.
· Scope issues - what will be and will not be addressed
The Project addresses the challenges and strategic issue management faced by the Insurance Business globally and does not address the country wide, localized and regional challenges faced by the insurers in different countries.
· Importance of Study: Why are these issues important for the sponsoring organization?
These issues influence the business outcomes, commercial performance, growth and profitability of the Insurance Organisations thus affecting the objectives of sponsoring Organizations. Low business trends lead to business downfall for the sponsors while high profitability improves the mutual benefits for the Sponsors.
High Level Overview of Deliverables to Sponsor or Project:
· Deliverable 1: Identify the salient features of the problems and the opportunities the Insurance Organisations are facing or (Statement of the Problem)
The competitive forces working both the inside and outside the Insurance Organisations pose immense challenge for the operations of the company. When the companies shut down due to loss or recession, the customers lose their valuable money savings. Several other Companies like Health Management Organisations, Banking Systems , Pension schemes and the New Competitors in the Mortgage Industry, the competition has increased vigorously. These Companies also provide same financial services as the Insurance companies. Rationalization and Globalization has further added to the rivalry. The shutting down of various Insurance Companies in many countries and the low socio economic...