Strategic & Commercial Due Diligence | Bonus Project

Client Needs & Objectives

Our client, a European investment fund, wanted to evaluate the opportunity to invest in a wholesale broker operating in the non-standard risk niche market (aggravated risk)

This report has been structured to answer a number of questions, which can be organised along 6 categories:

  • Market Drivers & focus on aggravated motor risk
  • Impact of self-driving vehicle
  • Regulatory environment
  • Competitive positioning
  • Analysis of risk carriers and of the network of brokers
  • Opinion on the management business plan

Our Approach

  • Analysis of the insurance value chain, market drivers, trends and key statistics related to car insurance. Assessment of the addressable market of non-standard
  • Development of diffusion scenario for self-driving vehicle in the French car fleet, and estimate of the insurable mass by 2040
  • Analysis of the main regulatory developments and associated impacts
  • Analysis of target’s competitive environment and estimates of the market shares of the main aggravated risk brokers + price positioning analysis (price vs. coverage comparison)
  • Evaluation of the strength of the risk carriers (insurers and reinsurers) and analysis of the quality of the network of brokers
  • Review of the feasibility of the business plan and the main assumptions of the management team

Client Benefits & Main Results

3 deliverables including all the analyses and formal opinions of CH&Co. on each of the categories:

- Market « red flags » report (~2 weeks)

- In-depth report (~3 weeks)

- Report for banks / lenders accompanied by presentation and Q&A sessions with the financiers as well as with the investment committee of our client

Clear assessment of the opportunity to benefit from the evolution of the car insurance market, disrupted by innovations around self-driving cars (threat vs opportunity)

Identification of the key levers to carry out the BP forecasts