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Medium Market Sizing

Workplace Insurance Co.

#Insurance #Financial Services
ProHub Comment

This is a classic market sizing case requiring a top-down approach using population and workforce data, combined with bottom-up assumptions about injury rates, claims frequency, and compensation costs. The case rewards detailed, well-reasoned assumptions while maintaining mathematical simplicity. Success depends on logical segmentation of the blue-collar workforce and realistic modeling of the workers' compensation claims process.

Estimated Time 15 minutes
Difficulty Medium
Source Cornell
50 / 100
Our client is a large US insurance company that is thinking about launching a new type of insurance product that deals with injuries at a workplace – a form of workmen’s compensation for blue-collar workers. They have hired us to determine the potential market size and revenue potential for this new product (if they were to go ahead with the launch).

Clarifying Information

Not explicitly provided in the case materials shown. The case overview indicates the interviewee should develop sensible assumptions around:

  1. Number of injuries
  2. Frequency of injuries per year
  3. % of injuries claimed by companies
  4. Average duration a worker is affected (i.e. unable to work as a result of the injury)
  5. Average wage of blue-collar workers
  6. Average compensation to be paid to injured workers
  7. Market share client expects to reasonably capture with this new product (assuming similar products are being offered by competitors)