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Q2
The team discovers that the demographics of Magna’s subscribers have changed significantly in the past 5 years, from majority industrial workers/laborers to majority office employees. Knowing this, are there any specific areas you would investigate first?
A2
We are looking for a few responses, similar to the ones below:
  • Claim costs, as the change in the subscriber base will change the profile of diseases (e.g., more heart disease/stress and less work related injury)
  • External referral costs, due to the change in the disease profile for which they have in-house competency
Your answer was:

I would try to do consumer investigation. Try to analyse the forces why the target are labors. It must be unsymmetric information in this case. Maybe the company can make different prices to grasp all level of consumers.
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