Business Model Regulatory Impact on Efficiency and Treating Customers

The short-term insurance industry has been inundated with many competitors attempting to obtain a space for which there is limited market share. Faced with an increase of invasive legislature the entire industry is devoting a substantial amount of time in advancing this new regulatory regime. Amidst the competitive onslaught and regulatory arbitrage the underwriting management agencies (hereafter referred to as UMA’s) are continuously looking for new ways to grow their businesses against the backdrop of a limited distribution channel and an expensive business model. Thus business models have different contexts. Therefore every company operates according to some logic even if the logic is not described as a business model leading to immense innovation. This suggests that successful business models that meet the expectations of financial innovation include four components: “customer value proposition profit formula key resources and key processes.” As a result these are the “building blocks” of a business.