Expanding Property and Casualty Insurance to Peru
Expanding
Property &
Casualty Insurance to Peru
MB-615
JA M A A L S TA N F O R D
W E E K 6 A S S I G N M E N T: F I N A L P R E S E N TAT I O N
Executive Summary
•Traveler’s product offerings have grown and proven successful over the test of time.
•From 2010-2015, The Travelers Companies stock price has risen from approximately
$48.00 to approximately $100.00 where is stands today.
•Property and Casualty insurance is a service/product that typically at its core, remain the same internationally.
•Our proven business models across all lines of business and ability to staff and train, now is the time to further expand internationally.
The Market - Peru
Population: 30.9 Million
GDP:
◦
◦
◦
◦
$344.2 billion
5.8% growth
5.5% compound annual growth
Per Capita $7k
Inflation: 2.9%
Unemployment: 6.5%
Language: Spanish & Quechua
Why Peru?
Despite Political Scandal in recent years, Peru is a very attractive market for the sale of Property &
Casualty insurance:
Strong & Improving Economy
◦ Real GDP (Growth) – 5.8%
◦ Increasing internet adoption
Attractive Insurance Market
◦ Over 2 billion in Non-Life insurance premium written in 2013
◦ P & C insurance are most prevalent lines of insurance
Attractive Regulatory Environment
◦ Ease of doing business ranked 35th out of 189
◦ Regulatory Quality ranked 68th out of 189
Culture/Hofstede
Currency – Nuevo Sol
Literacy Rate – 93.84%
Internet Adoption – 42%
Agriculturally Base society
High importance of family, religion, and relationships
• Power Distance – 67 o Tolerant towards unequal distribution in power o Preference toward certainty and structure
• Individualism – 16
• Collective Culture
• A “We” attitude Vs. “I” common in American
Culture
Uncertainty Avoidance – 87
◦ Strong Desire for Certainty
◦ Conservative country
Masculinity Vs. Femininity – 42
◦ Emphasis on relationships and less on individuality ◦ Even distribution of roles
Economy
Competitors – Multinational
ACE
CHUBB
• One of the world’s largest
Property &
Casualty Insurance to Peru
MB-615
JA M A A L S TA N F O R D
W E E K 6 A S S I G N M E N T: F I N A L P R E S E N TAT I O N
Executive Summary
•Traveler’s product offerings have grown and proven successful over the test of time.
•From 2010-2015, The Travelers Companies stock price has risen from approximately
$48.00 to approximately $100.00 where is stands today.
•Property and Casualty insurance is a service/product that typically at its core, remain the same internationally.
•Our proven business models across all lines of business and ability to staff and train, now is the time to further expand internationally.
The Market - Peru
Population: 30.9 Million
GDP:
◦
◦
◦
◦
$344.2 billion
5.8% growth
5.5% compound annual growth
Per Capita $7k
Inflation: 2.9%
Unemployment: 6.5%
Language: Spanish & Quechua
Why Peru?
Despite Political Scandal in recent years, Peru is a very attractive market for the sale of Property &
Casualty insurance:
Strong & Improving Economy
◦ Real GDP (Growth) – 5.8%
◦ Increasing internet adoption
Attractive Insurance Market
◦ Over 2 billion in Non-Life insurance premium written in 2013
◦ P & C insurance are most prevalent lines of insurance
Attractive Regulatory Environment
◦ Ease of doing business ranked 35th out of 189
◦ Regulatory Quality ranked 68th out of 189
Culture/Hofstede
Currency – Nuevo Sol
Literacy Rate – 93.84%
Internet Adoption – 42%
Agriculturally Base society
High importance of family, religion, and relationships
• Power Distance – 67 o Tolerant towards unequal distribution in power o Preference toward certainty and structure
• Individualism – 16
• Collective Culture
• A “We” attitude Vs. “I” common in American
Culture
Uncertainty Avoidance – 87
◦ Strong Desire for Certainty
◦ Conservative country
Masculinity Vs. Femininity – 42
◦ Emphasis on relationships and less on individuality ◦ Even distribution of roles
Economy
Competitors – Multinational
ACE
CHUBB
• One of the world’s largest