Презентация на тему International business strategy courseinternationalization of ingosstrakh

forces analysis [M.Porter]
Global insurance market
Foreign Markets
General Statistics
Asia-Pacific market
Ingosstrakh Entry
Ingosstrakh

Ratings
Exit from European market
SWOT analysis of Ingosstrakh
Value Chain Analysis
Ingosstrakh Expansion Challenges
Further discussion

in Russia
Standard and Poor’s agency rating BBB-, AA+

rating on the Russian scale of Expert RA
Full range of insurance services: car insurance, property insurance, health insurance, life insurance, children insurance, traveling insurance, mortgage insurance, investment insurance, pension insurance
Ingosstrakh products are available in 220 cities of Russian Federation and distributed through the regional network of 83 branches
Representatives in Azerbaijan, Kazakhstan, Ukraine, India, China
Colden Salamander award in 2010, Company of the Year 2009 award, Information and Open Organization of the year award received 10 times.

of Ministers of the USSR
Initial services included cargo insurance,

marine hull coverage, fire insurance, liability insurance, and reinsurance
Network of foreign offices since 1953








Became an open joint stock company in 1993
Wide regional network

be the reason for the bankruptcy
Often international by

the industry nature
Solvency of the insurance companies usually regulated by government

2007-2009 (СAGR ≈13%).
Declining number of market players ( 857

in 2007 vs 579 in 2011)
Biggest market players- Rossgosstrakh, SOGAZ, Ingosstrakh, RESO-Garantiia, Alfa insurance
Federal players take leading positions in the regional markets
Fragmentary character of the industry
Strict government regulations hinder development of the market

and sophisticated computer systems in use
High switching costs to

other suppliers
Bargaining power of buyers
individual clients mostly
growing demand for insurance products
Internet facilities allows to compare prices
Threat of new entrants
newly established, diversified or internationalized companies
online services complicate situation
preliminary compulsory insurance purchases
Non-differentiated products
Threat of substitutes
Savings and investments
Industry rivalry
Market fragmented with large companies

focus more on managing risks to capital and investments

and adapting strategies to changing environment
Significant top-line growth opportunities in emerging markets: China, India, Latin America
Global leaders:
AIG Inc, Allianz, AXA, Generali Group, Prudential Financial, Inc…

countries ($120 mln investments in CIS countries and in

Russia)
2007 - selling of Finnish subsidiary Ingonord to Swedish group “Fundior AB”
2009 - selling of the last European subsidiary (Sovag) to Volga resources fund

Reasons:
Upcoming solvency requirements “Solvency II” ($100 mln required investments in German subsidiary Sovag)
No change in annual net income
Need for additional €2-3 bln of investments to reach European competitors

Market Need
Dilution of Brand-Name Power
Cultural Nuance
Distance and Time
Finding

Reliable Partners
Economic and Financial Challenges
Nationalization
National Controls
Costs
Market Competition in Host Country 

with its international expansion?

Localization of services for

the needs of each particular market
Expansion of product lines
More products for individual customers (medical, property, auto insurances)
Opening of own medical centers for individual voluntary medical insurances
Development of Ingosstrakh’s net of retail sales
Reduction of target audience in some countries of entry
Positioning itself as the most reliable company in terms of insurance payments

Concentration on the market it has already entered and neighboring ones.
Bancassurance in India
Positioning itself as a company which serves local customers since Soviet times (for further penetration in CIS markets)
Expanding in Brazil and Africa, using China and India entering as a benchmark
Developing and reaching the level of global companies in terms of IT software used and antifraud systems