Prudential Business Model Canvas

Ties with hospitals, clinics and telehealth firms enable Prudential to implement managed care, secure preferential rates and scale preventative programs, leveraging a global telehealth market valued near $97B in 2024. Integration feeds health underwriting models and helps control claims costs through data-driven risk stratification. Value-added wellness benefits boost member engagement and improve retention metrics.

Regional banks drive >30% of life distribution in parts of Asia (2023), intermediaries c.60% in Asia (2024), telehealth market ~97B (2024) and global reinsurance premiums ~$300B (2023–24) underpin capacity; asset mandates improve yield/ALM and sustainable/Sharia funds expand reach.

Assess mortality, morbidity, lapse, market and credit risk with data-driven models and stochastic scenarios, aligning capital tests with Solvency II 1-in-200-year VaR requirements (as of 2024). Use reinsurance, hedging and ALM strategies to stabilize earnings and capital, reducing volatility from market and longevity shocks. Continuously monitor quarterly and annual experience studies to recalibrate pricing and reserving assumptions.

Develop life, health, savings and investment-linked products tailored to local demographics and channels, leveraging claims and segmentation data for features and distribution.

Apply actuarial pricing, reserving and capital optimisation under IFRS 17 (effective 2023) and Solvency II 1-in-200 VaR stress tests, targeting 4–5% p.a. investment returns in 2024 market conditions.

Scale sales via agents, bancassurance and digital platforms, tighten claims, fraud controls and digital triage, and monitor NPS and turnaround KPIs to improve retention.

Prudential leverages a large agent force, bancassurance deals and growing digital channels to scale distribution; in 2024 its relationship capital with banks and corporate clients continued to deliver steady leads while embedded sales and CRM tech boosted agent productivity and conversion rates.

Prudential (founded 1848, 176 years in 2024) leverages brand across 13 Asian markets and Africa, supporting premium pricing and bancassurance reach. Actuarial and data teams plus in-house+partner investment platform managed ~$1.4 trillion AUM in 2024 across 20+ local markets. Core platforms (policy admin, CRM, claims), APIs and data lakes drive omnichannel sales and personalization.

Prudential integrates preventative programs, telemedicine access and reward incentives that shift care upstream, addressing chronic drivers that account for roughly 90% of US health spending per CDC. Customers receive tangible benefits—virtual visits, wellness rewards and reduced out-of-pocket costs beyond claim payouts. Improved outcomes from these interventions support lower claim frequency and create room for gradual premium moderation over time.

Comprehensive life, health and retirement solutions backed by about $1.5 trillion AUM (2024) and top insurer credit profiles deliver dependable claim-paying capacity and long-term planning. Omnichannel digital servicing (65% adoption in 2024) and localized advisory support 10m+ customers in Asia, while sharia-compliant and local-currency products target parts of the 1.4bn underserved adults (World Bank).

Wellness and engagement rewards at Prudential use activity tracking and preventive-care incentives to drive healthier behaviors among over 20 million customers as of 2024, reducing claim frequency and boosting retention. Tiered benefits reward tenure and escalate cross-sell opportunities through increasing discounts and exclusive product access. Data-driven offers, powered by behavioral and claims analytics, personalize rewards and improve conversion and lifetime value.

Prudential combines advisor-led needs assessments and digital self-service to support ~18m customers, driving advice-led cross-sell and ~88% policy retention in 2024. Digital channels served 3m active users, while wellness programs reached ~20m customers, lowering claims and boosting loyalty. Corporate teams delivered 98% SLA compliance and 87% renewal retention; analytics cut claims costs ~6%.

Prudential’s website and mobile app support quote, buy and service workflows end-to-end, with the app handling over 1 million monthly policy interactions in 2024; performance marketing cut digital acquisition costs by roughly 25% year-on-year in 2024, boosting online sales; simple term and protection products are optimized for direct conversion, accounting for ~40% of online sales in 2024.

Licensed agents, bancassurance, digital direct, corporate/group and brokers drive Prudential distribution; agents and bancassurance handle complex sales while digital captures ~40% of online sales (2024). Bancassurance ~60% APAC life sales (2024); app 1M monthly interactions; aggregators ~25% online purchases (2024).

SMEs and corporate employers need group life, health and retirement benefits to attract talent; SMEs account for about 90% of businesses and roughly 50% of employment globally (World Bank, 2024). Cost-effective, compliant plans with administration support reduce HR burden and legal risk. Renewal cycles for group policies create predictable recurring premium revenue for insurers.

Rising Asia GDP ~4.5% and Sub‑Saharan ~3.6% (IMF 2024) expand demand for affordable protection and unit‑linked savings. HNW clients manage ~$85tn investable wealth (2024) needing wealth transfer and tax‑efficient solutions. SMEs (~90% of firms, ~50% employment) drive group benefits demand and recurring premiums. Youth (1.2bn aged 15–24, UN 2024) and 1bn+ underserved need mobile, low‑ticket, simplified products.

Policy administration, call centers and platform maintenance create a mix of fixed infrastructure and variable per-policy servicing costs for Prudential; legacy admin systems and peak call volumes drive base capacity needs. Investments in automation and straight-through processing have been shown to reduce unit processing costs by up to 30% (industry studies, 2024), lowering long-term marginal cost. Enhanced cybersecurity and regulatory compliance add ongoing overhead, often increasing operating expenses by high single-digit percentages year-over-year.

Commissions (1st-year 40–60%) and partner revenue shares (15–30%) plus CAC ($600–$1,200) are major acquisition costs in 2024. Claims remain the largest cash outflow; reinsurance and underwriting control volatility. Automation cut unit admin costs up to 30% (2024 studies), while solvency buffers targeted ~150–200% SCR, raising capital opportunity costs.

Management fees from Prudentials unit-linked products and mutual funds provide steady recurring revenue, charged as a percentage of AUM and billed quarterly or annually.

Performance fees on outperforming mandates and distribution fees from retail intermediaries augment fee income, creating upside beyond base management fees.

Long-term AUM growth compounds earnings through higher fee bases and economies of scale, reinforcing profitability and cash generation.

Investment income and spread from invested float drove core earnings; US 10-year averaged about 4.2% in 2024, with credit spreads near 120 bps affecting realized returns.

Recurring fees (management, performance, distribution) scale with AUM growth and boost margin through economies of scale.

Policy charges and group benefits remain steady revenue pillars; global life premiums were about $5.0T in 2024 and industry persistency averaged ~85%.