Defaqto’s influence covers both intermediated and direct sales. Its insight into the counterplay of price, cover and service puts it in an ideal position to help its customers maximise the effectiveness of their product range through increased sales potential and product yield.
The scope of the Defaqto consultancy service is wide reaching. Using a comprehensive range of qualitative and quantitative techniques, Defaqto can provide clear and actionable conclusions in a variety of areas, from desk research to in-depth market research.
Product development & positioning
Defaqto provides consulting services on new product positioning and conducts market testing of new products.
Working together with your marketing, research and development departments, the Defaqto Insight consulting team uses extensive experience and knowledge of the market to bring fresh insights to your organisation on the development and positioning of new financial products in the market and in assessing the viability and competitiveness of products before introducing them to the market.
OPAS (Objective Product Analysis Service)
One of our standard consultancy service offerings is a Defaqto OPAS report. This is an analysis of one or more products against either a specific competitor panel, or the whole of market for that product. Using our Aequos data we identify areas of strength and weakness in the product analysed, identify its overall position in the market and, if appropriate, clarify where the product would be placed in Defaqto’s Star Ratings.
OPAS analyses can be conducted on either existing products in the market, or on new or proposed products.
Case study 1
Evaluating product range and fit at a leading UK insurer
A large UK insurer asked Defaqto to evaluate its whole product range to give independent validation of each product’s value and the overall fit of the range. Our remit was to engage with the marketing team and stimulate fresh ideas to improve the company’s positioning.
We identified weaknesses in the company’s protection range not least the use of three different disability clauses, which caused unnecessary expense. The range was modified to cut unnecessary features and reduce the cost.
Case study 2
Product review on cover levels at a general insurer
One of the UK’s leading general insurers has been working closely with Defaqto for a number of years, predominantly in the area of home and travel insurance. The client was advised on a continuing basis as to the actions needed to keep its products at the forefront of the market, in terms of cover, features and benefits.
Potential policy changes were reviewed with Defaqto before introduction to customers to ensure that they received among the highest levels of cover in the UK market.
This approach appeared to bear fruit - in a very competitive market. In its subsequent results announcement it stated “Sales of household insurance increased by 8% … The growth in non-mortgage related sales …… is a significant achievement and is an important aspect of our strategy for increasing market share in the household insurance sector.”
Case study 3
Assessing the viability of an international insurer’s new product within the UK IFA market
Defaqto was engaged by a major international insurer to assess the viability of its ground breaking product within the UK IFA market. Using a mixture of desk research to position the product within the market and market research to gauge IFA sentiment to the proposition, we delivered a report that allowed the company to adjust the product to suit the particular needs of the UK.
Case study 4
M&A due diligence for acquisition of a life company, commissioned by a merchant bank
Defaqto was commissioned by a merchant bank as part of a due diligence process to assess the viability of a life company target. Defaqto formed part of the due diligence assessment team and its task was to assess the ongoing commercial positioning of the company.
IFAs were consulted to assess the firm’s strengths and weaknesses against a peer group. These results were then cross referenced against the company’s product set and service assessment to gauge the ongoing support from the IFA channel and possible strategies to maintain this.
