B t product-segmentation_sample

Knowledge Inspires SM © 2007 Burton-Taylor International Consulting LLC

Burton-TaylorI N T E R N A T I O N A L C O N S U L T I N G L L CI N T E R N A T I O N A L C O N S U L T I N G L L C

Product Segmentation Sample

Lower-tier Variable Annuity and Life Insurance Illustration Software Product

The slides presented here are extracts from larger presentations, consequently some will appear out of context. They are presented only as indicative samples of Burton-Taylor Market Intelligence, Strategic Planning or Revenue Generation activity.

The data shown may not be representative and should not be used in decision making.

Page 2 Knowledge Inspires SM

© 2007 Burton-Taylor International Consulting LLC

Burton-TaylorI N T E R N A T I O N A L C O N S U L T I N G L L C

Broker-Dealers and wirehouses drove VA sales increase, even with limited or poor illustration capability.Most fixed annuity distributors saw growth, but banks held the sector back.

US$

Annuity Distribution Channels & Growth – US - $236.20 billion pa

Captive Agents

Banks

Broker- Dealers

Wirehouses &

Regionals

0%

20%

40%

60%

80%

100%$160.6b

Variable Annuity

+ 20-25%

+ 15-20%

+ 5-10%

+ 17% - 5%

IMO's & Independent

Agents

Captive Agents

Banks

Broker- Dealers

Wirehouses &

Regionals

Other

0%

20%

40%

60%

80%

100%$75.6b

Fixed Annuity

- 10-15%

+ 1-5%

+ 1-5%

+ 1-5%

+ 1-5%

Variable Annuity Premiums Grew 17% in 2006

Before defining your

product segmentation opportunities,

B-T’s Add: Advanced decision

dataTM helps your company recognize the

expanding segments of

your market...

…as well as those which

are constricting

growth.

Add: Advanced decision dataTM market analysis Burton-Taylor International Consulting LLC




Broker-Dealers Earn Over $10b Revenue AnnuallyAnnuities and insurance sales account for 35% of US Broker-Dealer annual commissions.Improved illustration capabilities directly translate to improved revenue and closing rates for Broker-Dealers.

Linsco/Private Ledger

Raymond James Financial Services

Northwestern Mutual Investment

Securities AmericaMML Investors Services

Financial Network Investment Royal Alliance AssociatesPrincor Financial Services

H.D. Vest Financial ServicesCommonwealth Financial Network

Mutual ServiceAXA Advisors

AIG Financial AdvisorsFSC Securities

NYLife SecuritiesFirst Command Financial Planning

Walnut Street SecuritiesING Financial Partners

Other


Raymond James Financial Services

Royal Alliance Associates

Commonwealth Financial Network

Securities AmericaFSC Securities

AIG Financial AdvisorsCambridge Investment Research

Financial Network Investment Wachovia Securities Financial H.D. Vest Financial Services

Mutual Service

Other


AXA Advisors

Raymond James Financial ServicesRoyal Alliance AssociatesMML Investors ServicesING Financial Partners

AIG Financial AdvisorsSecurities America

Woodbury Financial ServicesNational Planning

NYLife SecuritiesInterSecurities

Financial Network Investment Commonwealth Financial Network

FSC Securities SII Investments

INVEST Financial

Other

NFP

First Command

AXA Advisors

M Holdings

Great American

NorthwesternMutual

MML

Woodbury

Linsco/Private NYLife

ING Financial

Other

RJ

LPL

First Allied

WachLaSalle St.Investors CRoyal All

AIG SACF

Summit

Other

SFS

RJ

SSN

FAMIS

SigmaIF

UPFSMHNFG

ChoiceBYAParkCA

Wach

Other

0%

20%

40%

60%

80%

100%

20% 40% 60% 80% 100%

Broker-Dealer Revenue & Market Share – US - $10.44 billion pa

Mutual FundsAlternative

AnnuitiesFees SecuritiesInsurance

US$

$2.83b $2.61b $0.49b$2.82b $1.07b $0.62b

FNI

NFP SecuritiesAXA Advisors


B-T provides the ability to “deep dive”

into your potential market

opportunities, allowing your product and

strategy teams to clearly

isolate potential

products and customers…




Two-thirds of total US Broker-Dealer annuity & insurance commission revenue is generated from variable annuities, and 25% of that is generated by only 3 firms. These 3 firms currently have no custom illustration capability.


AXA Advisors

Raymond James Financial ServicesRoyal Alliance AssociatesMML Investors ServicesING Financial PartnersAIG Financial Advisors

Securities AmericaWoodbury Financial Services

National Planning NYLife Securities

InterSecuritiesFSC Securities

Commonwealth Financial NetworkSII Investments

Other

NFP Securities

First Command Financial Planning

AXA Advisors

M Holdings Securities

Great American Advisors

Northwestern Mutual Investment Svcs

MML Investors Services

Woodbury Financial Services

Linsco/Private LedgerNYLife Securities

Other

RJ

CFICA

Cen

O

Broker-Dealer Revenue & Market Share – Annuity & Insurance – US - $3.68 billion pa

$2.49b $1.06b $0.12b$0.01b

AIGSumINGFC

FNI

LPL

INV

HDV

NFPMFS

Variable Annuity FALife & DI

0%

20%

40%

60%

80%

100%

20% 40% 60% 80% 100%

LTC

Mutual ServiceWalnut Street Securities

Park Avenue SecuritiesFinancial Network Investment

Mutual Service

FNI

First Command

LPL

Commonwealth

Investacorp

HD Vest

Lincoln Investment

Other O

US$

Ten Broker-Dealers Account for 50% of VA Revenue


…and recognize where new

product segmentation

will lead to new

opportunities for your clients

and new revenue for your firm.




Linsco/Private Ledger’s top 250 producers are twice as productive as those of North-Western Mutual and MML Investment Services. Improved illustration capabilities can improve productivity at less profitable firms.

US Broker-Dealers Employ Over 37,500 FA’s

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Linsco/ PrivateLedger

Broker-Dealers Selling Annuities & Insurance – Top 13 - US

Raymond James

AXA Advisors

North- Western Mutual

Inv Svcs

Royal Alliance

Securities America

MMLInv Svcs

Common- wealth

Financial

NFP Securities

Financial Network

Inv

AIG Financial Advisors

FSC Securities

First Command Financial

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$00

Num

ber o

f Fin

anci

al A

dvis

ors

Average A

nnual Production of Top 250 Financial Advisors

US$Top 250 average productiondon’t sell annuitiessell annuities


Understanding how your proposed

solutions will help your

clients succeed…




Trust levels are dropping across the industry, as a whole.Illustration capabilities bring transparency and understanding to an opaque market, and help to raise levels of trust.

Major US Wirehouses Employ Over 84,000 FA’s

Merrill Lynch

Smith Barney

MS Dean Witter

Wachovia UBS AG Edwards

Edward Jones

HR Block

Hilliard Lyons

JMS RaymondJames

RBC Dain Rauscher

Stifel Nicolaus

Financial Advisors Selling Annuities – Big 5 Wirehouse & 8 Major Regionals - US

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

1.0

2.0

3.0

4.0

5.0

Num

ber o

f Fin

anci

al A

dvis

ors

Level of Trust, 1-5

trustdon’t sell annuitiessell annuities


…as well as understanding

how your client’s clients

will benefit raises the

credibility of your product segmentation strategy and confirms for you that the opportunities

are valid.




IT spend, as a percent of premiums, is shifting from accident and health to annuities. Life spend is growing.Both offer prime opportunity for new revenue generated by a lower-tier alternative for the mass-market representative.

Life/Health Premiums by Line - $518 billion pa – Information Technology Spend by Line - US

Annuities

Life

Accident and Health

$100b

$200b

$300b

$400b

$500b

$600b

$0 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Ann

ual P

rem

ium

s by

Pro

duct

Lin

eA

nnual IT Spend by Product Line, as a Percent of Premium

s

lifeannuities accident and health

2003 2004 2005

US$

Premiums Will Track a 6.2% CAGR Through 2009


After using B-T’s Add: Advanced decision dataTM to clearly

measure, target and

confirm opportunities to segment

product lines…




Illustration spend, in the annuity space, will grow from $53m to $68m over the next 3 years, raising the opportunity for a lower-tier (hosted) illustration solution and expanding the addressable market 95%.

Illustration Software Spend & Revenue Growth – Mass-market Illustration Product - US

Info

rmat

ion

Tech

nolo

gy Il

lust

ratio

n Sp

end

Mass-market Illustration Product (Distribution)$0

$10m

$20m

$30m

$40m

$50m

$60m

$70m

$80m

2007 2008 2009

US$

Annuity Illustration

SpendAnnuity Illustration

Spend

Annuity Illustration

SpendAddressable

Market

Addressable Market

Addressable Market

Mass-market Illustration Product

(Carrier)Mass-market

Illustration Product (Carrier)

A mass-market illustration product will drive revenue from existing markets, and create new ones where illustration wasn’t affordable in the past.A mass-market illustration product will expand the illustration addressable market by $26m at release, and grow it to $54m by 2009.A mass-market illustration product will gain a 38% share of the US annuity illustration spend and a 5% share of the distribution desktops over the next 3 years.

Assumes technology spend matches market growth of 6.2% CAGR

Assumes Illustration spend matches current rate of 0.52% of technology spend

Lower-tier Product Expands Addressable Market


…Burton-Taylor helps your company clearly define your

most profitable product

segmentation and quantify your return.

Page 31

Confidential – Do Not Reproduce


Knowledge Inspires SM


Other available Burton-Taylor reports:

► Bloomberg v Reuters News - Analysis of Fixed Income Services, April 2010

• Burton-Taylor delivers the first ever fixed income comparative analysis of the two largest financial news

services. The report is sufficiently detailed as to allow fixed income news users and market participants to make

better informed, more confident and more appropriate purchase decisions, and to allow news providers to make

more competitive product requirement and specification decisions, which could result in greater profitability for

both. The report includes qualitative and extensive quantitative comparison of international, regional and local

fixed income content, coverage depth and coverage breadth by fixed income instrument type between

Bloomberg News and Reuters News. Download Sample Slides and the Information Kit

► China Financial Market Data/Analysis Market Share & User Requirements 2010 - Key Competitors,

Detailed User Needs - Portfolio Managers, Researchers, Sales & Traders

• The mainland China financial information market has grown at a 29.5% CAGR since 2003, yet remains opaque.

Burton-Taylor reveals the mainland China market data vendor share, as well as detailed user needs analysis

and satisfaction ratings for Portfolio Managers, Researchers and Sales & Traders. This comprehensive report

will allow market data/analysis providers, users or industry analysts to clearly understand 2010 competitive

positioning in mainland China. The analysis also enables market participants to quickly determine the most

important content/capabilities to serve the China market and to measure levels of satisfaction for the economic

data, equity data, company & fundamental data, news and capabilities currently being delivered to the Portfolio

Managers, Researchers and Sales & Traders in the country. Download Sample Slides and the Information Kit

► Financial Market Data/Analysis Global Share & Segment Sizing 2010 - Key Competitors 2005-9, Segment

Sizing 2007-9

• Burton-Taylor delivers a comprehensive analysis of market data supplier share, user segmentation and vendor

demographics. The analysis is sufficiently detailed as to allow market data/analysis providers or industry

analysts to clearly understand competitive positioning currently, historically, globally, regionally and within

individual user segments, and to enable market data/analysis users to make better informed, more confident

and more appropriate purchase decisions. Download Sample Slides and the Information Kit

Burton-Taylor International Consulting LLC

http://www.burton-taylor.com/samples/B-T_Bloomberg_v_Reuters_News-Analysis_of_Fixed_Income_Services_2010_Information_Kit.pdf

http://www.burton-taylor.com/samples/Burton-Taylor-China_Financial_Market_Data-Analysis_Market_Share_and_User_Requirements-Portfolio_Managers,_Researchers,_Sales_and_Traders_2010-Information_Kit.pdf

http://www.burton-taylor.com/samples/B-T_Global_Market_Data-Analysis_3_Year_Segment_and_5_Year_Competitor_Analysis_2010-Information_Kit.pdf

Page 32





Other available Burton-Taylor reports (continued):

► Bloomberg v Reuters News - Analysis of International Services, April 2009

• Burton-Taylor delivers the first ever comparative analysis of the two largest financial news services. The report

is sufficiently detailed as to allow global market participants to make better informed, more confident and more

appropriate purchase decisions, and to allow news providers to make more competitive product requirement and

specification decisions, which could result in greater profitability for both. The 80 page report includes qualitative

and extensive quantitative analysis of international and regional content, daily and hourly volume, 3rd party

redistribution, coverage breadth, coverage depth and commentary comparison between Bloomberg News and

Reuters News. Download Sample Slides and the Information Kit

► Found: US$2 Billion in Hidden Demand - Global Financial Information Survey - Revenue, Sharing & Piracy

Estimates, June 2009

• Burton-Taylor measured the global spend on financial information and analysis at US$23 billion, exit 2008.

According to a new B-T survey of 80 executives at market data vendors and client companies, there is an

additional US$8 billion in pirated usage from ID/Password sharing and from internet scraping. The industry

experts estimate that roughly one-fourth of users sharing IDs/Passwords would purchase if tools were available

to enable information companies to accurately and affordably target and approach them. These users represent

US$2 billion in current, hidden, addressable demand that requires no new product development, no new staffing

and no significant investment to secure. This Burton-Taylor report details the findings of the survey and

suggests remediation action to capture the revenue. Request the Free Report (using code PIRACY2009)

For a list of all available Burton-Taylor reports, please visit the Research area of Burton-Taylor.com.


http://www.burton-taylor.com/samples/B-T_Bloomberg_v_Reuters_News-Analysis_of_International_Services_2009_Information_Kit.pdf

http://www.burton-taylor.com/piracy-survey-request.html

http://www.burton-taylor.com/consulting/research-full.html



Page 30





The following companies have purchased reports or services from Burton-Taylor International

Consulting LLC:

► AdmitOne Security

► Bain & Company

► Baseline Management

► Battery Ventures

► Bloomberg LP

► Boston Consulting Group (BCG)

► CapMan

► Credit-Suisse

► Dow Jones

► Dun & Bradstreet

► First State Investment Advisors

► Goldman Sachs

► Interactive Data Corporation (IDC)

► Lehman Brothers

► Lone Pine Capital

► Markit

► News Corporation

► PricewaterhouseCoopers

► Point Carbon

► Quick

► RBS

► Sanborn Consulting

► Scout Analytics

► Summit Partners

► SunGard

► TheMarkets.com

► Thomson Reuters

► UBS

► VantagePoint Venture Partners

► Xignite

► Over a dozen private equity, investment

and consulting firms from around the world,

who have asked to remain anonymous


Page 33





Burton-Taylor’s trademarked Hourglass AnalysisTM provides a proven, structured yet customizable

business consulting approach that helps companies clearly target new opportunities, define new strategy,

and plan new actions to maximize growth.

Hourglass AnalysisTM Burton-Taylor International Consulting LLC


Sector Research

Find your new customers

Finding new opportunities offering the

highest return and lowest underlying

risk is never easy. B-T excels at

enabling companies to target

opportunities directly and confidently.

Customer Research

BU/Company Strategy

Shape your new strategy

Charting how, when and where to

invest, to generate maximum value

and capitalize on the most profitable

options, is like navigating a maze. B-T

helps companies map the most direct

paths to significant growthService/Product Strategy

Sales Plans

Capture your new revenue

Crafting compelling messages and

defining actions that result in shorter

sales cycles can be a challenge. B-T

are skilled din helping companies build

plans that quickly and profitably

capture new revenue.Marketing Plans

Page 34





Burton-Taylor International Consulting LLC B-T helps companies clearly see their target markets, their competitive environment and their

opportunities. We help them see their paths of greatest reward and least resistance, and we help them

define specific actions that ensure the future they see today is the one they profitably achieve tomorrow.

B-T’s Hourglass AnalysisTM process provides a proven, structured yet customizable, business consulting

approach that helps companies clearly target new opportunities, define new strategy, and plan new

actions to maximize growth.

While accomplished in the Americas, Europe and Asia, and with a strategic approach that remains

generalist, B-T has developed substantial expertise in the global information, insurance, financial services

and software industries, with deep focus in North America, China, India and Asia.

B-T completes custom research, varying in size from small single product or market detail reports to large

global industry and competitor sizing and profiles.

B-T provides outsourcing, filling temporary and long-term resource gaps, or manages special projects, by

providing expert management to companies who are experiencing headcount or budget constraints.

To learn more about how Burton-Taylor International Consulting LLC can help your company improve

performance through improved Market Intelligence, Strategic Planning and Revenue Generation activities,

please call +1 646 201-4152, email: [email protected] or visit www.burton-taylor.com.

Burton-Taylor International Consulting LLC, 1319 Thornapple Drive, Mezzanine Level, Osprey, Florida 34229-2301 +1 646 201-4152

http://www.burton-taylor.com/consulting/market-intelligence-full.html

http://www.burton-taylor.com/



http://www.burton-taylor.com/services-market-intelligence.html

http://www.burton-taylor.com/services-strategic-planning.html

http://www.burton-taylor.com/services-revenue-generation.html

mailto:[email protected]






Education

B t product-segmentation_sample