Page 2: The Insurance sector
Royal & SunAlliance sells most of its commercial insurance through Insurance Brokers. Royal & SunAlliance analysed its business and identified that:
- small businesses were generating an increasing amount of business
- small business customers were not always getting very good service
- more profit could be made from insurance for small businesses by making processes and systems slick, efficient and cost-effective.
This internal company analysis was supported by external analysis that showed that there are 3.5 million small and medium-sized businesses in the UK which represents 95% of all UK businesses. Most of these companies have sales of less than £1m per year.
Market research showed that as insurance customers, they want quality products provided quickly and at a competitive price. This segment is forecast to grow over the next few years, meaning that there is a real business opportunity to increase market share and profit.