Increase in Property and Casualty Insurance: Peru
Expanding Property & Casualty to Peru
Jamaal Stanford
MB 615
Week 5: Assignment: PAPER: Business Plan
Introduction
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. While subtle changes will be necessary will offering the product in another country, I am confident that with 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, one of the most rapidly growing and emerging markets in the world. Peru’s continuous economic growth, make it a very attractive market when considering expansion for Property and Casualty insurance. Peru offers substantial growth opportunities for insurers if they understand the various cultures and business dynamics in the country. Tapping the emerging middle classes here is also crucial.
The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%.
In terms of Property and Casualty Insurance Premium currently being written in Peru, over 2 billion dollars in Non-Life insurance premium was written in 2013 with P&C insurance being the most prevalent line of insurance premium being written.
When doing business in Peru, Lloyds’s country comparison reports ranks Peru 35th out of 189 rank country in regards to ease of doing business. The Regulatory Quality ranked 68th out 189 and with our services, import & export regulations and tariffs should not greatly impact out business within the country.
Competitive Advantage
Our competitive
Jamaal Stanford
MB 615
Week 5: Assignment: PAPER: Business Plan
Introduction
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. While subtle changes will be necessary will offering the product in another country, I am confident that with 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, one of the most rapidly growing and emerging markets in the world. Peru’s continuous economic growth, make it a very attractive market when considering expansion for Property and Casualty insurance. Peru offers substantial growth opportunities for insurers if they understand the various cultures and business dynamics in the country. Tapping the emerging middle classes here is also crucial.
The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%.
In terms of Property and Casualty Insurance Premium currently being written in Peru, over 2 billion dollars in Non-Life insurance premium was written in 2013 with P&C insurance being the most prevalent line of insurance premium being written.
When doing business in Peru, Lloyds’s country comparison reports ranks Peru 35th out of 189 rank country in regards to ease of doing business. The Regulatory Quality ranked 68th out 189 and with our services, import & export regulations and tariffs should not greatly impact out business within the country.
Competitive Advantage
Our competitive