Cuvva

1. What are the overall market dynamics of car insurance in the UK? What is the potential market size
in the UK for Cuvva-type services? 

Motor insurance premiums in the UK were estimated at $15.6bn. Insurance premium tended to be
cyclical. Market is dominated by thre big players: Admiral, Avia and Direct Line.

Insurance value chain tends to get complicated and costly with multiple layers between insurance
suppliers and end buyers.

Target market for Cuvva includes people who (a) don’t own a car or (b) drive very infrequently (approx.
6mm cars)

2. What is the strategy of Cuvva and what are its (potential) competitive advantage(s)? 

Cuvva targets Car Sharers and Owners, the Company believes low-mileage drivers are overpaying for
insurance and the insurance value chain can be improved / disrupted.

Cuvva competes with incumbents by designing better interfaces to sell policies via mobile phones. Cuvva
understands that traditional distribution models are too complicated and don’t appeal t younger
demographic. Another competitive advantage is its superior technology to process / analyze and update
customer data.

3. What do you see as Cuvva’s strategic challenges? 

Keep the claim & operating / premium ratio low

Adoption of its app through mobile phone platforms
Emergence of competitors due to low barrier of entries
Hard to convince partnership with big insurance players

4. In what (other) ways could Cuvva strengthen its positon? 

Aggressive customer acquisition

Partnering with big insurance companies / emerging transporting tech

Charles Schwab

 
1. Is Charles Schwab Corp. still a disruptor? Explain why you agree or disagree with Walt Bettinger on
this point. Can big incumbents be disruptors in the financial services sector? 

We agree with Walt Bettinger Charles Schwab being a disruptor. Company size has little or no indication
to whether it is going to be a disruptor or not. Charles Schwab’s focus on reinventing itself based on
customers need and the constant goal to challenge the traditional financial service provider make
Charles Schwab a disruptor.

2. Where should Schwab look for growth? 

Charles Schwab should look at several areas:

- Make it easier for current customers to access / executer financial decisions
- Offering more products / increase customers share of wallets at Charles Schwab
- Offering new / innovative low-cost distribution channel, going mobile
- Developing novel financial products

3. Schwab executives believe the willingness to “cannibalize” oneself is crucial in the quest to stay
ahead of the disruption curve. What organizational or structural factors make it more or less likely
that Schwab can continue to execute on this? 

Factors that make Charles Schwab more likely to execute the vision:
- Flexible, scalable technology
- Ability to change products / train employees quickly

Factors that make Charles Schwab less likely to execute the vision
- Human staffer and union / contracts
- Turbulent regulatory

4. How does regulation affect Schwab’s ability to innovate and fend off challengers? Is it a competitive
advantage, a “moat,” or a hindrance? 

It depends. Regulation can be a double-edged sword for Charles Schwab

- At certain time, regulation can discourage new entrants to compete with Charles Schwab
- Regulation can tighten fee on certain products and affect Charles Schwab’s fee / revenue per
customers

5. Is Schwab making, buying, and partnering for the right things to keep it ahead of the pack? Where
should they focus on partnering and where should they build products internally? 

Charles Schwab is making / buying and partnering for the right things to keep it ahead of the pack. With
the right customer vision in sight, to keep cost low and make the user interface convenient for
customers to trade / make personal financial services decision, Charles Schwab slowly become one of
the most competitive players in the market.

Charles Schwab should focus on building / automating efficient processes internally while buying /
partnering with everyone else, whether is a new financial products or entering a new market.
6. Do you believe Schwab’s strategy towards younger investors is the right one? If so, why?If not, why
and what should Schwab do differently? 

I believe Charles Schwab’s strategy toward younger investors is the right one because
- Younger investors are increasingly crowding in the market
- By establishing relationship with younger investors sooner, Charles Schwab has huge potential
to up-market when these investors grow older and have higher net worth

7. If in 10 years Schwab’s business has been disrupted, where do you think the disruption came from,
and why? 

I think the disruption can come from several sources:

- New financial products

- New information system that automate Charles Schwab current services
- Customers financial habits

Any of these changes can have macro effect on the financial service industry in general and specifically
can change Charles Schwab business model drastically