ProductNick Pearce & Hemal Patel

AgendaAreas To Consider

Factors Affecting The Policy

Descriptions of each area of Insurance

Should we specialise?

Boston Matrix

Product Life Cycle

Potential Packages

Potential USPs

Areas To Consider

Public Liability

Property Liability

Employers Liability

Cancellation & Abandonment

Source: events-insurance.co.uk

Factors Affecting The Policy

Number of Attendees

Value of Planes

Modern / Vintage Aircraft

Location – Over Sea / Housing

Number of Exhibitors

Terrorism

Public LiabilityCovers your liability against claims from the public if

they are injured or their property is damaged due to your business/event.

How many people attending?

Potential problems?

What value of cover?

Minimum value is normally £1m up to £10m

Property Liability

Covers the property used in the event – like planes, big screens and audio systems.

Value of property?

Likelihood of Damage?

Cover in transit and preparation days?

Employers Liability

Covers your liability against claims from employee’s or volunteers if they are injured.

Number of Workers?

What Role?

What value of cover?

Minimum value is normally £5m

Cancellation & Abandonment

Covers potential losses due to cancellation & abandonment.

Potential Causes – Weather, Terrorism, Dramatically Reduced Attendance (e.g Transport Strike)

What level to cover? Air Shows are very susceptible to the weather

Should We Specialise In One Area of Insurance?

Could give possibility to compete on price?

Can attack a segment of the market?

Competitors might offer a whole package?

Market may not be large enough to only consider a segment

Should We Specialise?

Based upon the previous research, we have decided not to specialise as we feel the market is too small.

Source – Cowan Global - http://cowanglobal.files.wordpress.com/2012/04/boston-matrix.png

Source – Cowan Global - http://cowanglobal.files.wordpress.com/2012/04/boston-matrix.pngAnd http://www.events-insurance.co.uk/pages/policies/

Festivals

Bands & DJs

Firework Displays

New Years Eve

Christmas Lights

Air ShowsCivil Partnerships

Conferences

Street Parties

Weddings

Source:http://3.bp.blogspot.com/-bxqk0YysdPg/UjFZR1EUtdI/AAAAAAAAABo/KCp5x3GX1kE/s1600/Product+Life+Cycle.png

Product Life Cycle

Potential Packages

One Size Fits AllBasic Public Liability – Extended to cover Airside

Liability

Basic Property Liability

Full Employer Liability

Cancellation & Abandonment

Pros +

• Easy to understand• Simple Pricing

Cons -

• No Flexibility• Cant Adapt for Small

Shows

3 TieredBronze – Small Shows 30% of Max Value

Silver – Medium Shows 70% of Max Value

Gold – Large Shows 100% of Max Value

Pros +

• Retains A Level Of Simplicity

• Allows for smaller shows

Cons -

• No option for personalisation

• Customers may not feel they are receiving quality service

Taylor MadeBasic Inclusion of:

Public Liability to include Airside Liability Property Liability – (Planes up to a specified value) Employer Liability Cancellation & Abandonment (not including acts of god)

Option to add Cover for weather cancellation – alternate rain days? Additional car parks Excess to cover planes over the specified value Stall holders can purchase cover at a discounted price Able to quote for any other options

Pros +

• High Levels of Personalisation• Very Flexible to Different Sized Air

Shows

Cons -

• Time Consuming to Build Packages

Potential USP’s?Be a ‘loyal’ company. We promise to never raise

the price of a quote if the cover you require year on year remains the same.

Only charge for the number of people that actually attend?

Unable to compete on price in the long run, due to the size of the business, therefore focus on providing good customer service.

Overall Decision not to specialise as the market is already relatively

niche.

Product will be a question mark in Boston Matrix, as it is low market share but with potentially high growth for our company.

At introduction stage of product life cycle

Aim to offer a Taylor Made Package with several options, combining ease of application with a high level of personalisation and efficient friendly service

References

Annette Stephen. (2012). Product Life Cycle. Available: http://annettestephen-marketingjournal.blogspot.co.uk/2013/09/product-life-cycle.html. Last accessed 25th Feb 2014.

Cowan Global. (2013). The Boston Matrix. Available: http://cowanglobal.files.wordpress.com/2012/04/boston-matrix.png. Last accessed 25th Feb 2014.

Events Insurance. (2014). Event Insurance Policies. Available: http://www.events-insurance.co.uk/pages/policies/. Last accessed 24th Feb 2014.

Hiscox. (2014). Event Insurance. Available: http://www.hiscox.co.uk/events/. Last accessed 26th Feb 2014.