Description how often it will require maintenance, how


Description of how
the business will make money (revenue streams).

This insurance system
is totally newest business concept for the Sri Lankan motor insurance industry.This
UBI(user based insurance system) system is entirely different from traditional
insurance methods in the Sri Lankan insurance sector.most of
the motor
insurance companies consider the age of the vehicle to decide the premium
amount per annum.This information helps them to decide how the vehicle will
perform, how often it will require maintenance, how likely it is for the
vehicle  to be in an accident etc. But
through this new concept customer can pay for their usage nature.There
are lot of benefits can be obtain through this new insurance scheme to the
customers as well as the company too. The commercial benefits to our insurance
company include better alignment of insurance costs to actual risk.as the
profit oriented business, we expect to touch the customer hearts as the
marketers through the powerful slogan like your key to a smart cost
effective motor insurance solution.Any business to be profitable it revenue
must be greater than the expences.therefore we take initial capital from our
mother company to start up this business in the initial stage. This insurance
company planned to make money most of its money from taking premium and
investing them in profitable way. Basically this company expects to collects
its premiums from all clients and invests that money in extremely safe
investments such as government bonds and also keeps capital on hand to pay
claims made by our clients. And also the company expected to make money in the following two ways:

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Underwriting Income: This is the
difference in the amount of money collected from the people as premiums and the
money paid when a claim is filed in the hour of need.Investment Income: What you pay as a premium
is invested further so that it accrues interest over time and that is further
used to cover the various expenses of the insurer. Our company expect to
establish a well-diversified portfolio and invest in both low-risk fixed-income
securities and high-risk, high-return equity markets. On the other hand,
company keeps track of the claim ratio or the loss ratio for every year. This the
ratio of total money paid in claims and other adjustment expenses to the total
amount earned in premiums. Based on this ratio, the premiums for future years
are calculated.The company expect to takes all expenses into account, including
the management costs and commissions and then keeps a margin of 2-5%.At the end
of the year, the actual payouts are compared with the original estimations and
the premiums are future cases are adjusted accordingly. Other revenue generating
method is engaging marketing and promotional activies.because customers are the
life blood of our business. If we have to keep higher customer base around our
business through that our revenue will be increased. Unless we cannot maintain
good customer base, totally we will be fail from the market. Therefore we
planned to several strategies to retain the existing customers and attract the
new more customers from the external business environment through that as a
business we can earn revenue.Following marketing strategies expect to launch
for buildup strong customer base around our smart UBI solution, those are,

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