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Global Expansion Strategy Guides Financial Company

Background and Challenge

A company that provides insurance and investment-related products and services – including protection, retirement income and investments, and mortgage insurance – had a corporate mandate to build its international business to 50% of total corporate revenues/profits over two years. To support this plan, they were seeking an in-depth assessment of the market for asset management, life insurance, and long-term care products and services in key geographies worldwide. The company was keen to evaluate market dynamics, growth prospects and possible routes to market in order to prioritize its expansion strategy.

Approach and Recommendations

The project encompassed a number of product groups (life insurance, asset management and long-term care products) and geographies (Australia, Brazil, Canada, Chile, China, France, Germany, India, Japan, Mexico, South Korea, and United Kingdom) and was split in two phases:

  • Phase 1 - Overview and Prioritization
  • Phase 2 - Growth Potential

During Phase 1, the L.E.K. Consulting team developed an independent assessment of the size, growth and key characteristics of the target markets, and determined high-priority product sectors and geographies. In Phase 2, the team developed a detailed understanding of the prioritized markets from Phase 1, and provided insights into the actions that the client would need to take in order to enter and develop a strong position in these markets. In Phase 2, L.E.K. surveyed customers, competitors and other stakeholders, and leveraged its experience to recommend an attractive entry strategy.

The L.E.K. team identified global opportunities and recommended entry points on multi-product strategy/platforms, including fund management and services, as well as discovered opportunities for the client in annuities in four countries. The team also suggested prospects in a number of emerging markets, particularly India, on a distribution basis.

Results

L.E.K. provided the client with a systematic characterization of the most important products/applications and geographic market segments, and prioritized the most attractive areas on which to focus. The client received an objective evaluation of the most appropriate actions to take to establish a position in the most interesting segments.