You will be assigned a scenario. Preparing a 7-10 minute PowerPoint presentation containing the steps you would take, and the choices you would make in starting your company. Below is a template which outlines some of the major decisions. Remember, there is no "right or wrong" method to choose, but often there is a more appropriate method. You will not be graded based on which method you choose, but on how well you can defend that method with your reasoning and logic. Discuss these within you groups in detail, and make your decisions as a team.
Accounting: Do we want to be a stock company or a mutual company? What are the benefits/disadvantages of each? What types of reinsurance treaties do we need to pursue, and why?
Information Technology: Do we want to be web based, app based, or use "paper"? What are the advantages of each? Do we want to outsource our IT or handle internally?
Sales/Marketing: What is our distribution channel: independent agents, captive agents, or direct? Why? Would "affinity marketing" be viable for our company? How will our commission structure compare to other companies?
Products: What can we do to differentiate our product? Do we operate in a niche? If so, how do we tailor our product to fit the needs of that niche? Work with Underwriting to develop Guidelines.
Underwriting: Do we want "eyeballs" on every risk before approval or do we want some level of automated underwriting? Will we need inspections? What are your general gut feelings about the provided risk? Work with Products to develop Guidelines.
Claims: What is the structure of our department? Do claims reps handle specific types of claims or do all reps handle each claim in its entirety? How much will we need to rely on outside adjusters? What is the cost/benefit analysis of using outside adjusters?
Today, you will engage in circular dialogue within your group to discuss these items. I encourage you to meet outside of class at least twice over the next few weeks to ensure this assignment is completed with input from each team member. As always, if you have any questions, I am available as a resource as are your other industry contacts.