Axtria Insights

Axtria Insights

Competitive Dynamic Analysis

A regional P&C carrier wants to perform competitive analysis in order to better understand the local competition and their impact on its performance. Specifically, they are looking for the following:

1. Assess the level of competitive ‘noise’ in different local market areas
  • Identify areas with higher / lower competitive presence, relative to size of market
  • Overall and by carrier
2. Determine how the competitive landscape impacts their performance
  • Impact on performance as density of competitor agencies increases – number / proximity to agencies
  • Relative impact of specific competitor carriers – which pose the greatest threat?
3. Identify potential opportunities / threats based on results of analysis

Axtria team assembled the various granular data sets (carrier internal data on premium written, policyholder demographics, agency force, third party data on market demographics, competitor agency locations and carrier appointments) to build a comprehensive and complete view at the local market level. The pilot analysis was first conducted in PA and NC.

Business in PA, for example, was concentrated in 9 CBSAs, accounting for 90% of premium, 77% of agency appointments, 72% of owner occupied homes in PA. We therefore focused our analysis on these.

In that year, the top 10 P&C homeowner carriers accounted for 78% of PA premium; Client was ranked #26 among PA homeowner carriers. We took a look at the competitive appointments for these top carriers, and how their appointments impacted performance. Carrier representation varied significantly from market to market – which meant the mix of carriers facing the client in each market was very different. In all settings, urban and rural, the client agencies sourced 80%+ of their business within a 20 mile radius. Competition was, thus, a local phenomenon. 

Competitive Dynamic Analysis

Axtria leveraged its analytical solutions to isolate competitive effects – we essentially built models to determine linkages between competitive landscape variations and carrier performance.

Model results provided for:

      • Improved estimates of market opportunity at local level
      • Identification of best areas for agency appointments
      • Focused efforts to gather competitive intelligence
      • Appropriate positioning to address competitive dynamics
      • Identification and mitigation of specific competitive threats