Go Policy (Insurance Broker)

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Table of Contents
Company Analysis...............................................................................................................................3
Industry Analysis.................................................................................................................................5
PESTEL Analysis of Insurance Broker.............................................................................................6
SWOT Analysis....................................................................................................................................8
BCG Matrix.........................................................................................................................................9
References..........................................................................................................................................10

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Company Analysis
Gopolicy is an insurance brokerage firm from which customers may purchase assurance
coverage depending on the different alternatives accessible in every sector. They interact
personally with clients, educating and supporting them in choosing the best risk management
and finance policies for their needs. The insurers sector is governed by a centralized
organisation known as the Insurance Regulatory and Development Authority (IRDAI). No
firm would provide pricing that differ from those specified by IRDAI. As a result, they
provide a variety of options from which all clients may select, and then distinguish
themselves through a personalized fundraising and claim response process. Insurance is a
type of risk-mitigation strategy (Nduyu, 2018). This is a strategy that assists in transferring
liabilities to the policyholder in exchange for a little fee. The goal of any policy is to pay the
policyholder for damages, sustained by a range of dangers to the life, possessions, and
organization that they expect.

Consumers, corporations, as well as other organizations might use coverage to safeguard

themselves from large future risks and economic strain at a reasonable cost. When the
unexpected loss is minimal, it’s troublesome to spend a surcharge to defend over it. Same is
with the Gopolicy Company, their priority should be to enhance the risk mitigation process
and factors for the betterment of the company. Gopolicy believes in risk mitigation technique
wherein the policyholder passes the expense of a possible claim to other organisation in
addition to the financial reimbursement premiums. Gopolicy understands that not all the
insured persons might experience damages simultaneously. It enables reimbursement firms to
function economically while also paying disputes which might occur. The primary goal of
Gopolicy is to shift an individual’s responsibility to an insuring firm that could simply
distribute it which is surrounded by huge group of people covering comparable concerns. The
idea underlying Gopolicy was when a number of individuals who are subjected to
comparable risks join collectively and contribute to the development of a share of income.

Gopolicy might divide insurance into 2 categories based on the type of damage. There are
two types of insurance: insurance of property and personal insurance.

 Property insurance compensates against the destruction of someone's possessions in

certain methods, such as disaster, the forces at ocean (sea), rain, thunder, or storm,
mortality (of precious species), theft, and damage.

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 Personal insurance compensates the policyholder for revenue losses caused by a variety
of events; the most common of these include mortality, injury, illness, disability, elderly,
and joblessness.

There are few features of Gopolicy which are as follows:

1. Contract: Gopolicy has an agreement between insured and insurer. The policyholder
offers to pay, which the insurers approve it through agreement. It's often communicated in
written documentation.
2. Collaborative endeavour: A lot of people shift the responsibility to an organization
created specifically for this reason (Sukhorukova et al., 2020). As a result, Gopolicy
might argue because insurance is a collaborative effort of a huge group of individuals
willing to bear liabilities.
3. Security against financial hazards: Gopolicy mainly protects against financial dangers.
The liabilities could be quantified in monetary terms.

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Industry Analysis
A broker is an individual or company who is authorised to get coverage quotes on behalf of a
policyholder (client) or potential customer. A broker is never an official of an insurance
agency. Brokers would contact various insurance providers as the policyholder representative
in order to obtain quotes and policies to effectively safeguard the customer's risks. Brokers
must hold a broker's licence that usually indicates the broker has more skills or experience
than that of an intermediary. Brokers are responsible for analysing a company and obtaining
accurate and appropriate insurance for the company, which would be a greater obligation that
an agent's only administration responsibility. Agents generally demand an operational charge,
and monthly premiums are greater if acquired via a brokerage (Al-Khalifah, 2018). The
brokerage would determine the customer's requirements, collect documentation, and present
it to different insurer providers. Brokers are not authorised to contract insurance. Agents
provide the facts, and if the insurer provider accepts, the insurance is bound.

Insurance brokers protect the policy buyer, never the insurance agency, even if the insurer
carriers fund and bear the insurance trader's salary. The insured buyer incurs no extra costs
while doing deal with an investment advisor. Insurance brokers are talented and trained
insurance professionals who can purchase insurance for its customers at the highest
economical monthly lines of credit. Insurance brokers offer the coverage customer a bundle
of offerings post-insurance solutions as well as assistance in submitting claims paperwork to
the insurance provider. Huge insurance consulting businesses can get protection for any sort
of risk. They have a tendency to compartmentalise protection in order to give expertise in
each sector of security. Larger corporations, for example, have divisions that manage aviation
hazards, whereas its counterparts manage employees' insurance.

Big organizations might not always need the amount of subjectivity and expertise provided
by bigger brokerages. With this aim, a modest broking business or an independent broker
could be sufficient (Pan, 2019). They can also provide a greater quality experience, which a
local company may desire. Brokers help customers with complaint filing and payments;
professionals argue for their customers and guarantee that customers obtain the best payment.
A broker represents the customer, not the insurance.

Brokers are unable to arrange insurance on request of insurers because they do not serve
them. To understand the task, customers should pass over the funds to an insurance broker.

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PESTEL Analysis of Insurance Broker
A PESTEL study, also known as a PESTELE assessment, is a framework or methodology
used among managers to evaluate and manage macro-environmental (international marketing
atmosphere) elements which has an effect on a firm. A PESTLE study is a process for
evaluating the major variables impacting a company (Political, Economic, Sociological,
Technological, Legal, and Environmental). It provides human resource managers with
information into the external influences affecting the company. The PESTEL Analysis of
Insurance brokers are as follows:

 Political Factors: The governments, including regional and community sectors, is

operating surplus expenditures, that boosts development in the long period but might
contribute to higher prices in the coming years. In the case of Gopolicy insurance firm,
the federal administration's debt burden is highly leveraged. Insurance businesses require
cash to develop and enter its markets. The IRDA has recently allowed an initially public
offering (IPO) to obtain cash from the Asian economy, which might also contribute to the
insurance industry of Gopolicy.
 Economic Factor: Gopolicy insurance firm may estimate the strategic position of not just
only the insurance field but also the organisation by using national social conditions such
as annual growth, depreciation, and private consumption. Insurance has a beneficial
impact on economic development: The insurance business provides a significant function
in the banking business, helping to productivity expansion, inclusive and sustainable
development, processing cost savings, stability generation, and the promotion of
economies of level in Gopolicy insurance company investment. (Gros et al., 2020).
Economic factors which insurance brokers can adapt are as follows: Governmental
control in the competitive systems and corporate financial transactions, Stock markets and
the sustainability of the foreign nation's currency, Reliability of facilities in the Insurance
Brokers business etc.
 Social Factors: The character and manner of conducting activities in community have an
effect on the development of an organisation in an atmosphere. The demographics’
important universal and views hold a crucial influence in how marketers at a certain
company identify the clients of a particular business to promote the brand image for
Financial Advisors industry by government. Insurance broker management must examine
demographic context for PESTEL analysis. The social elements that insurance broker
leadership should consider for PESTEL study are as follows:

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 1. Demographic characteristics and experience level.
2. In society, there is a social order, a hierarchical, and a democratic system.
3. Social class and quality literacy in a certain company.
 Technological Factors: Technology is rapidly affecting Gopolicy company as it
brings the drastic change in terms of growth. Technology plays a critical role in the
evolution of the mortgage business and the policy business. The success of social
activities would grow in their field of insurance industry if people would focus upon
the digital facilities. The web is being used by life insurance purchasers to evaluate
and acquire insurers. Slower speeds provide more time, but faster speeds of
digitalization should provide a business with less time to respond and remain
competitive.
 Environmental Factor: Distinct marketplaces feature several rules or ethical
requirements, which might create an influence on an organization's competitiveness in
those marketplaces (Longhurst et al., 2020). Gopolicy have noticed current patterns of
social banking and insurance risk mitigation in terms of sustainable development.
Although within the same nation, regions might have varying ecological and safety
rules. A few of the ecological sustainability that an insurance broker should know
about ahead of time are:
1. Environment.
2. Changes in the environment.
3. Rules governing harm to the environment.
4. Laws for environmental pollution in the Insurance Brokers business.
 Legal Factor: The legal structure and organizations are insufficient to secure the
company’s intellectual ownership interests. When joining such industries, a company
should carefully examine its options because doing so might result in the stealing of
the agency's secret formula and, as a result, its competitive advantage. The Insurance
Regulatory and Development Authority (IRDA) is an independent government entity
which safeguards consumer rights. They are in charge of overseeing the expansion of
the insurance business in Gopolicy and ensuring its rapid expansion. A few of the
legal requirements that leadership must have in mind when starting a business are as
follows:
1. Competition legislation in the Insurance Brokers business and throughout the nation.
2. Racism legislation.

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3. Trademarks, rights, and legislation.
4. E-commerce and product safety.
5. Labour legislation.

SWOT Analysis
SWOT analysis is used to identify Gopolicy’s strengths and weaknesses and to uncover
methods to enhance how the company operates. Understanding outside opportunities and
threats assists the organisation in finding new methods to offer additional products and
expand the company (Kamran et al., 2020). The SWOT Analysis of the Gopolicy Company
are as follows:

1. Strength: Strength is the capability to provide a wide range of insurances, such as car,
accident, family, and medical coverage that attract to a wide range of target customers. If
Gopolicy raise coverage prices and consumers are ready to pay the increased prices,
Gopolicy Company would earn larger profits, making the firm extra profitable. Recurring
clients are an advantage because their purchases provide regular income for company.
2. Weakness: When it relates to marketing insurance, receiving instalments, and alerting
clients whenever the expenses are due, relying on payment system rather than digital
alternatives may make the company appear ancient and out of touch. No adequate
systems in existence to handle finance, advertising, including daily operations, Gopolicy
Company may suffer financial difficulties.
3. Opportunities: Selling additional goods allows Gopolicy to improve the company's
earnings. By conducting commerce via internet, the concerned firm may reach more
individuals in need of insurance whilst earning costs on production and manufacturing
expenditures. Offering assistance as an insurer adviser in addition to offering policies is a
method to supplement the earnings and establish them as a reliable source.
Communicating and developing ties with many other companies, such as accountancy
and law firms, allows for recommendations to business owners and individuals in demand
of insurance coverage.
4. Threats: Communicating and developing ties with many other companies, such as
accountancy and law firms, allows for recommendations to business owners and
individuals in demand of insurance coverage. Evolving medical regulations might need
some fast modifications in the manner, Gopolicy provide insurance, posing a risk if the
company becomes unable to keep pace with the latest marketplace and rules.

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BCG Matrix
The Boston Consulting Group (BCG) economic expansion matrices is a management
technique which employs visual characterizations of a business's goods and service providers
to assist the firm in deciding how much to maintain, trade, or spend in more.

1. Stars: Stars- Stars indicate company units with a huge economic position in a rapidly
expanding sector. They might produce income, however due to the ever expanding
industry, stars require massive expenditures to retain their dominance. Net income is
often minimal. Segments placed in this cell are appealing since Gopolicy is in a
thriving insurance industry with challenged corporate entities. Whenever the business
grows, a popular star will turn into a cash cow. Gopolicy Insurance Company should
implement a design and production plan in which it creates key qualities on this
product using manufacturing. This would benefit Gopolicy Insurance Company by
increasing sales and recruiting new consumers.
2. Cash Cows: Cash Cows are company units that have a significant economic position
in an established, sluggish sector. Cash cows sometimes need commitment and
produce money which might indeed be invested in many other company units. These
segments represent the company's primary supply of revenue and, more precisely, its
principal activity. It seems to be the foundation of any organisation. Such companies
typically employ valid information. As cash cows lose its allure and begin to
deteriorate, a retraction programme could be implemented. Gopolicy Insurance
Company's advised approach is to engage just enough maintain this important sales
team operational. If it is not any more competitive and becomes a liability, Gopolicy
Insurance Company can sell its business segment.
3. Question Marks: Question Marks- Question marks signify company divisions with a
small market shares in a fast-growing sector. Companies need a lot of money to keep
or acquire position of the industry. They demand consideration in order to assess
whether the enterprise is sustainable. Question marks are typically innovative items
and services with a promising business future. There is no precise strategy that can be
implemented. If the business believes it has a dominant market share, it can pursue an
expansion plan; otherwise, it can pursue a retrenchment approach. Most companies
continue as questions as the firm attempts to join an elevated industry where there is
existing significant real economy.

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4. Dogs: Dogs- Dogs symbolise companies with low economic expansion market in
reduced industries. They neither create nor demand large sums of money. These lines
of business incur different cost as a result of their limited share of the market.
Gopolicy possess a low growth rate due to excessive expenses, low quality,
inadequate advertising, and other factors. Until a dog will have another strategic goal,
it must be terminated when it has lesser chances of growing. In an organisation, the
number of dogs must be prevented and limited. In the last four years, Gopolicy
Insurance Company has experienced a loss. It too has a customer base of less than
5%. To avoid additional losses, Gopolicy Insurance Company's suggested approach is
to sell this key economic division.

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References
Al-Khalifah, A., 2018. The strategic stabilization of private banks and insurance company in
the financial service sector. Journal of Humanities Insights, 2(04), pp.161-
166.http://www.jhumanities.net/article_80885_7438.html
Gros, C. and Gros, D., 2020. The economics of stop-and-go epidemic control. arXiv preprint
arXiv:2012.07739.https://arxiv.org/abs/2012.07739
Kamran, M., Fazal, M.R. and Mudassar, M., 2020. Towards empowerment of the renewable
energy sector in Pakistan for sustainable energy evolution: SWOT analysis. Renewable
Energy, 146, pp.543-
558.https://www.sciencedirect.com/science/article/abs/pii/S0960148119310055
Longhurst, G.J., Stone, D.M., Dulohery, K., Scully, D., Campbell, T. and Smith, C.F., 2020.
Strength, weakness, opportunity, threat (SWOT) analysis of the adaptations to anatomical
education in the United Kingdom and Republic of Ireland in response to the Covid‐19
pandemic. Anatomical sciences education, 13(3), pp.301-
311.https://anatomypubs.onlinelibrary.wiley.com/doi/full/10.1002/ase.1967
Nduyu, D.G., 2018. Operations Management Practices And Performance Of Insurance
Brokers In Nairobi (Doctoral dissertation, University of
Nairobi).http://erepository.uonbi.ac.ke/handle/11295/106160
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in

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Engineering, 35(1), p.05018013.https://ascelibrary.org/doi/abs/10.1061/(ASCE)ME.1943-
5479.0000662
Sukhorukova, I.V. and Chistiakova, N.A., 2018. Optimization of the formation of the capital
structure of the insurance company, taking into account the national specifics of insurance.
Journal of Reviews on Global Economics, 7, pp.146-
151.https://www.lifescienceglobal.com/pms/index.php/jrge/article/view/5283

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