Marketing Audit of QBE Insurance: A Comprehensive Analysis

This report provides a comprehensive marketing audit of QBE Insurance, a leading general insurance provider in Australia. The report analyzes the company's current market position, target audience, market needs, and competitive landscape. It also includes a SWOT analysis, PEST analysis, and a review of the company's marketing mix. The report concludes with recommendations for QBE Insurance to improve its marketing strategy and enhance its performance in the Australian general insurance market.

Marketing Audit
A report on QBE Insurance
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Table of Contents
Background......................................................................................................................................3
Executive Summary.........................................................................................................................4
1. Category analysis.........................................................................................................................5
1a..................................................................................................................................................5
1b.................................................................................................................................................5
1c..................................................................................................................................................5
1d.................................................................................................................................................6
2 Target audience.............................................................................................................................7
2a..................................................................................................................................................7
2b.................................................................................................................................................7
3 Market needs.................................................................................................................................8
3a..................................................................................................................................................8
3b.................................................................................................................................................8
4 SWOT analysis.............................................................................................................................9
4a..................................................................................................................................................9
4b.................................................................................................................................................9
4c................................................................................................................................................10
5 Competitive analysis...................................................................................................................11
5a................................................................................................................................................11
5b...............................................................................................................................................11
6 Pest Analysis...............................................................................................................................12
6a. Political................................................................................................................................12
6b. Economical..........................................................................................................................12
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6c. Social....................................................................................................................................12
6d. Technological......................................................................................................................12
7 Market mix review......................................................................................................................13
7 a. Product................................................................................................................................13
7b. Price.....................................................................................................................................13
7c. Place.....................................................................................................................................13
7d. Promotion............................................................................................................................14
8 Recommendations.......................................................................................................................15
References......................................................................................................................................16
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Background
QBE Insurance Group Limited is the biggest international insurer of Australiaand it provides
itsservices into different areas and regions of the world as Europe, some regions of Australia,
Asia Pacific and America. The company was founded in the year of 1986 in the northern
Queensland, Australia. The company was found by Scottish migrants James Burns and Robert
Philip which was the founder of Burns Philip &Company. The QBE insurance company was
developed by the merger of Queensland Insurance, Bankers and Traders Insurance Company and
Equitable Life and General insurance company. QBE insurance company has approximately
14,226 employees which are working from 37 nations around the world. In the year 2017, the
company has attained the sales by $12041million and net income was $-825million, it was a loss
faced by the company in the year of 2017. In the year 2016 total sales were $11066million and
net income was $844million. In the year 2016, the operating profit of the company was $1075
million which was decreased in the year 2017 company get in the lossof $-98 million (4-Traders,
2017). So it is significant for the company to identify the areas for improvement to enhance its
operating profits and sales in the financial year of 2018-19.
Figure 1: Financial analysis of QBE Insurance
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Source: 4-Traders (2017).
Executive Summary
This report is based on the QBE insurance company which is a general insurance provider
inAustralia. It has identified that in the year of 2017-18 company has faced financial loss for
which different reasons are defined in the report. Competitor, internal and external analysis has
been developed under this report on the basis of which some recommendations are made for the
company.
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1. Category analysis
1a.
General insurance covers vehicle, accidental, home, travel etc. and Australia is having a big
market for general insurance. 2.2% is the average growth of the Australian general insurance
market which calculated on the basis of 2013 to 2018. Australian general insurance market has
provided employment to 21,605 people. Total $64 billion revenue is collected in the year of
2017-18 and more than 100 companies are working in the Australian general insurance market
(IBIS World, 2018).
1b.
Cyber insurance is the current trend in the general insurance market which has a business US$ 2
Billion in Australia. It is an emerging market trend which can be interesting for the company
(KPMG, 2017).
1c.
Market segments are determined on the basic demographic, geographic, psychographic and
behavioural of the targeted market. The QBE Insurance Company is working in the different
areas of the world which are also the market zone for the company but this report is focused on
the Australian market. QBE insurance is working in the general insurance which contains
different markets segments. Some of the markets segment of the general insurance company is
given below:
 Fully cover: This type of market segment contains a high-risk factor which is transferred
by the customers to the company. Customers want to full security and return on the risk
by eth insurance companies (Market segmentation study guide, 2017).
 Highly loyal: In these type of market segment customers wants to retain the same
insurance company for a long time which is profitable for the QBE insurance company as
well.
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 Price shoppers: Customers under this market decide to take insurance from those
companies which are providing their services at competitive prices.
 Make it easy: These types of customers wantthe more convenient process of insurance.
These people avoid typical process and paperwork in the insurance so according to this
market segment, QBE insurance company has to develop their procedure.
 Just The basics: Some of the people want just basic cover in the insurance as third-party
insurance for vehicles to get free from the risk of others (Market segmentation study
guide, 2017).
 Pick and Choose: Under this market segment customer selects an insurance company
which is providing more benefits atlower prices.
1d.
Fully cover and the highly loyal market segment has a lot of potential for QBE Insurance
Company. Huge values assets are covered under this market segment as home, luxury cars and
vehicles etc. It is a large market in Australia which provides opportunities to gain higher profits
with higher risks
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2 Target audience
2a.
The QBE insurance company is working in the general insurance market segment and they are
having focused on the heavy insurance premium market segment which has a huge risk but has a
potential as well to provide benefits and revenues to the company. This market segment is full
from higher risk of financial losses and but it provides opportunities as well to provide more
revenues and profits. Customers of heavy insurance market segment need a full cover of risk and
threats which helps them to be free from the threats. In the year of 2017 company has faced
operational loss due to higher payment to the customers which got insured by the QBE Insurance
group. It is essential for the company to develop this market to distribute the risk in more insured
parties to manage their revenues and operating profits (Chen, et. al. 2012).
2b.
The QBE insurance is targeted to get more profits by enhancing their revenues so it is essential
for the company to deal with in the different market segments which helps them to make changes
in their current position. As in the recent financial year,the company has faced a financial loss so
it is essential for them to identify new market opportunities in new market segments. It is
essential for the company to develop new product packages for vehicle, accidental, home etc. to
develop a competitive edge. It helps to attract new customers which are looking forward to
getting a better package of insurance. It is also essential for the company to work in cyber
insurance to provide protection to those customers who have cyber-based risks and threats
(Chen, et. al. 2012).
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3 Market needs
3a.
Most of the customers want a proper protection from the risk which is covered by the insurance
so it is essential for the company to provide a full description in the starting of the insurance.
Currently, QBE insurance company has much paperwork in the process of insurance and most of
the customers want a digital process of working which helps them to avoid the paper formalities.
It is essential for the company to develop a digital process working which helps in the
accomplishmentof eh expectations of the customers (Chen, et. al. 2012). It is analysed that
customers do not have much time to provide in the proceedings of insurance so it is essential for
the company to develop a better procedure for work.
3b.
It is significant to develop better insurance packages for the targeted customers who can help
them to accomplish the needs and expectations of the targeted market. Cyber insurance is the
current trend of the general insurance market due to enhanced use of internet which has
developed threat of cybercrime on its users. This market trend is based on the market needs and
requirement so QBE Insurance Company could develop better products and packages under this
market segment. It is effective to work on the market trends and needs which provide an
assurance to the company to be in the profitable conditions (Chen, et. al. 2012). Many of the
general insurance companies are providing cyber insurance so it is essential for the QBE
insurance company as well as to enlarge their products in the same category.
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4 SWOT analysis
4a.
A swot analysis is given below to identify internal strength, weakness and external risk and
opportunities for the QBE insurance company:
Internal Strength
 Expertise in the general insurance
market segment due to working fora
long time
 Experienced employees are working in
the company
 More than 14,000 employees are
working worldwide (4-Traders, 2017)
 The futuristic approach is used by
leadership and management of the
company
Internal Weakness
 Lack of innovation is the major
drawback of the QBE insurance
company
 High attrition rate is found in the
company as compared to the other
organisation
 Lack of involvement of employees in
the decision-making process
External Opportunities
 Cyber Insurance market
 Newmarket development in the
emerging economies
 Competitive pricing and product
development
External Threats
 Enhanced market competition
 Government restrictions
 Nature-based risk which compels the
company to cover the risk which can be
a reason for financial lose
4b.
Recommendations to QBE insurance company are given below to use its strength and
opportunities and to work on their risk and weakness:
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 QBE insurance company should develop employee’s engagement programs to use them
in the growth of the organisation.
 The company has to develop cyber insurance packages on competitive packages and
promote them in the targeted markets.
 They have to develop better policies for working according to the government.
4c.
An action plan is given below for the QBE insurance company to implement the
recommendations:
Goal Description Responsible team Duration
Employee
engagement
program
It is essential to enhance
employee’s engagement
in the organisation.
HR management 2 months
New product
packages
Cyber insurance is the
current trend of the
market on the company
has to work.
Marketing and sales
team
6 months
Development of
organisational
policies
It helps to develop
better working policies
according to the
government.
HRM 4 months
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5 Competitive analysis
5a.
Different companies are working in the general insurance market of Australia some of the market
competitors of QBE Insurance Company are given below:
Chubb: It is the top rivalry of the QBE insurance which is working in the Insurance broker
industry of Australia. Chubb has more than 30,000 employees which are the strength of the
company and has collected total revenue from business activities around $45.2 billion in the
financial year of 2017-18 (Owler, 2018).
IAG: It is the second market rivalry of the QBE insurance company which has more than 13,000
employees and have their operation all over Australia. It was founded in the year of 1925 and has
earned total revenue of$15 billion in the recent financial year (Owler, 2018).
5b.
Characteristics of identified market rivalries are given below:
Chubb: The Company provides a large range of insurance packages as commercial and personal
property, casualty, personal accident and supplement health insurance policies in the whole
country. A large number of employees help to provide a better service and assistance to the
customers which are the main need of the market (Owler, 2018).
IAG: It is providing a wide range of personal and commercial insurance packages in which
vehicle and home insurance are included in the competitive prices (Owler, 2018).
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6 Pest Analysis
6a. Political
Government policies and legislative regulations have much influence on the QBE as it is a
general insurance company. Tax rates and interest rates are determined by the government which
creates a huge impact on the funding and investment of the company. It is a service provider
company and change in tax structure has a much effect on the business. Political stability is
another factor which affects the growth of general insurance company. Unstable political
conditions effects on the organisational policies and futuristic approach (Luke, 2018).
6b. Economical
Fluctuations in the economy create adverse effects on the different industries.GDP growth rate
also has an effect on the performance of the company. An average GDP growth rate is 1% which
is decreased after the first quarter and currently, it is 0.7%. It effects on the growth of the
business and other different areas. The current inflation rate is 2.2% which is higher from
average inflation rate of1.90 which effect on the expenditure capabilities of customers in a
negative manner (Trading economies, 2018).
6c. Social
Education and occupation are one of the most significant factors which are considered under the
social factors. Professional people have less time for insurance proceedings so it has effected on
the working procedures of the insurance companies. People are more curious now regarding the
risks which are effective for the general insurance companies.
6d. Technological
Technological advancement has developed a better process of working which has converted to
human to work effortlessly. Social media marketing, a mobile application for process and the
fully digitalised process is the current need of the targeted customers which have to be adopted
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by the QBE Insurance Company. Technological development helps the people to save time and
efforts which can be utilised in some other work and activities.
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7 Market mix review
7 a. Product
QBE insurance company is working in the general insurance market segment from the year of
1986 and they have analysed the needs of the customers and have developed a wide range of
service packages. Accident & health, Commercial motor, Contract works and Engineering,
Liability, marine, Property, Trade Credit and Travel are the different packages of services for the
targeted customers. All of these products are developed and designed as per the needs and
potentials to get business. The company should develop new product packages as Cyber
insurance policy as well as provide benefit to people which have a risk from cyber activities
(QBE, 2017).
7b. Price
QBE Insurance Company is highly determined to provide a better service to the targeted
customers. The organisation is believed to work in the premium market segment which has
helped the company in the growth and develop trust in the targeted market. It believes to develop
a trustworthy relationship with the customers to retain them so it is essential to provide better
services which have a need to be charged proper pricing. The company is currently using the
premium pricing which helps them to bear the expenditures. The company should use
competitive pricing strategy for a cyber-insurance policy.
7c. Place
The insurance company have their offices and centres in the different areas of Australiato
provide support and customer assistance to its targeted customers. Most of the centres are located
in the public reach which helps to communicate better with the customers about the products.
The QBE insurance company has capital and regional branches which help to develop a network
in the whole of Australia. The company should sell their policy through their online and offline
channel.
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7d. Promotion
QBE insurance company believes to develop public relations which help to the company to
explain the benefits directly to its targeted customers. The insurance company promotes its
business through the public events and sponsorship of games which helps to develop a direct
communication. It is also effective for the organisation to develop a better brand image in the
targeted customers and to send the message to the targeted community. QBE insurance company
have to use social media, television and print media advertising to promote their Cyber insurance
policy in the targeted market (Neiger, et. al. 2012).
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8 Recommendations
Some of the recommendations are given below for enhancement in the performance of the QBE
insurance company:
 QBE insurance company should develop new service packages as cyber insurance to
enhance the market criteria.
 The organisation should adopt print, electronic and social media advertising to promote
their services in the targeted market.
 Face book is most effective social media platform which can be used by the general
insurance company.
 The company have to use competitive pricing strategy which can help to attract and
develop new customers.
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References
 4-Traders, (2017). QBE insurance Group LTD (QBE), [Online]. Available at
http://www.4-traders.com/QBE-INSURANCE-GROUP-LTD-6491461/news/QBE-
Insurance-2017-Half-Year-Report-24959413/ [Accessed on 26 June 2018].
 Chen, P. F., Lee, C. C., & Lee, C. F. (2012). How does the development of the life
insurance market affect economic growth? Some international evidence. Journal of
International Development, 24(7), 865-893.
 IBIS World, (2018). General insurance Australia market research report [Online].
Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/
financial-insurance-services/general-insurance.html [Accessed on 26 June 2018].
 KPMG, (2017). General insurance industry review 2017 [Online]. Available at:
https://home.kpmg.com/au/en/home/insights/2017/11/general-insurance-industry-review-
2017.html [Accessed on 26 June 2018].
 Luke, A. (2018). Critical literacy in Australia: A matter of context and standpoint.
In Critical Literacy, Schooling, and Social Justice (pp. 168-188). Routledge.
 Market segmentation study guide, (2017). Market segmentation for motor vehicle
insurance [Online]. Available at: http://www.segmentationstudyguide.com/understanding-
market-segmentation/market-segmentation-examples/market-segmentation-example-motor-
vehicle-insurance/ [Accessed on 26 June 2018].
 Neiger, B. L., Thackeray, R., Van Wagenen, S. A., Hanson, C. L., West, J. H., Barnes,
M. D., &Fagen, M. C. (2012). Use of social media in health promotion: purposes, key
performance indicators, and evaluation metrics. Health promotion practice, 13(2), 159-164.
 Owler, (2018). Chubb’s competitors, revenue, number of employees, funding and
acquisition [Online]. Available at: https://www.owler.com/company/chubb [Accessed on 26
June 2018].
 Owler, (2018). IAG’s competitors, revenue, number of employees, funding and
acquisition [Online]. Available at: https://www.owler.com/company/iag [Accessed on 26
June 2018].
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 Owler, (2018). QBE’s competitors, revenue, number of employees, funding and
acquisition [Online]. Available at: https://www.owler.com/company/qbe [Accessed on 26
June 2018].
 QBE, (2017). Why insure your business with QBE [Online]. Available at:
https://www.qbe.co.nz/products [Accessed on 26 June 2018].
 Trading economies, (2018). Australia economic forecast-2018-2020 Outlook [Online].
Available at: https://tradingeconomics.com/australia/forecast [Accessed on 26 June 2018].
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