Presentation: Distribution Channels for Life Insurance, A Global Perspective
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Presentation: Distribution Channels for Life Insurance, A Global Perspective

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Presentation at the 2nd Annual Life Insurance Forum, Amsterdam, 9-10 April 2014 ...

Presentation at the 2nd Annual Life Insurance Forum, Amsterdam, 9-10 April 2014

- Bancassurance as a major distribution channel for life insurance
- Consumer research: distribution of protection-related life insurance in Europe
- The global market for creditor / creditor life insurance

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Presentation: Distribution Channels for Life Insurance, A Global Perspective Presentation: Distribution Channels for Life Insurance, A Global Perspective Presentation Transcript

  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 1 Bancassurance Models Around the World Distribution Channels for Life Insurance: A Global Perspective 2nd Life Insurance Forum Amsterdam, April 9th – 10th 2014
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 2 Agenda  Bancassurance as a major distribution channel for life insurance  Consumer research: distribution of protection-related life insurance in Europe  The global market for creditor / creditor life insurance  Summary
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 3 Factors that the shape country- specific distribution landscapes 1. Regulations Mediation laws Product regulation 2. Market characteristics Maturity of the market Consumer behaviour
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 4 The importance of the bancassurance channel Estimated distribution share of bancassurance in total life insurance, 2012 / 2013 Source: Finaccord Global Bancassurance reports 0% 20% 40% 60% 80% 100% Turkey Brazil Spain France S. Korea Russia Poland Germany UK Chile Japan
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 5 The importance of the bancassurance channel Segmentation of 125 retail banking groups between those with captive underwriters, those with joint venture underwriters and those with both captive and joint venture underwriters for life insurance, 2013 Source: Finaccord Global Bancassurance reports Captive underwriter, 37.6% JV underwriter, 14.4% Captive underwriter + JV underwriter, 8.8% None, 39.2%
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 6 The importance of the bancassurance channel Ranking of banking groups by value of premiums of captive and joint venture underwriters, 2012 Source: Finaccord Global Bancassurance reports Rank Group Premiums (USD billion) 1 Crédit Agricole 29.00 2 ING Group 26.07 3 BNP Paribas 25.47 4 Bradesco 21.13 5 Crédit Mutuel 15.17 6 Lloyds Banking Group 13.13 7 Société Générale 13.09 8 HSBC 13.04 9 NongHyup Bank 9.11 10 Intesa Sanpaolo 7.28 Total of above 172.49 Other retail banking groups in world's top 125 164.52 Grand total 337.01
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 7 Consumer research: distribution of protection-related life insurance in Europe  Survey of over 6,000 consumers in France, Germany, Italy, Poland, Spain and the UK in 2012 Five types of protection-related life insurance: risk life, critical illness, long-term income protection, short-term income protection and funeral expenses insurance  Note that investment-related life insurance, retirement savings and creditor insurance not in scope here, hence weaker share of banks as distributors relative to total market
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 8 Consumer research: distribution channels used for protection-related life insurance Source: Finaccord Life Protection Metrics reports 0% 20% 40% 60% 80% 100% France Germany Italy Poland Spain UK Average Insurance company / agent Insurance aggregator or comparison site Financial adviser or broker Bank or similar institution Supermarket or other retailer Other
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 9 Source: Finaccord Life Protection Metrics reports Consumer research: distribution interfaces used for protection-related life insurance (1) 0% 20% 40% 60% 80% 100% France Germany Italy Poland Spain UK Average Face- to -face Online Inbound telephone Outbound telephone Post t1
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 10 Source: Finaccord Life Protection Metrics reports Consumer research: distribution interfaces used for protection-related life insurance (2) 0% 20% 40% 60% 80% 100% France Germany Italy Poland Spain UK Average Online (laptop or desktop) Online (tablet) Online (mobile phone)
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 11 The global market for creditor life insurance Size of the creditor life insurance market in Europe and Latin America, 2012 GWP estimate Source: Finaccord Global Creditor Insurance reports 37.73 4.78 0 10 20 30 40 Europe Latin America USD billion
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 12 The global market for creditor life insurance Creditor life insurance as percentage of total creditor insurance market, 2012 estimate Source: Finaccord Global Creditor Insurance reports 73.8% 79.0% 0% 20% 40% 60% 80% 100% Europe Latin America
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 13 The global market for creditor life insurance Creditor insurance market size compound annual growth rates, 2008 to 2012 Source: Finaccord Global Creditor Insurance reports 4.1% -0.4% 18.8% 26.3% -10% 0% 10% 20% 30% Creditor life - Europe Creditor non-life - Europe Creditor life - Latin America Creditor non-life - Latin America
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 14 The global market for creditor life insurance Creditor life insurance GWP as % of total protection-related life insurance GWP, 2012 / 2013 Source: Finaccord Global Creditor Insurance reports 95.5% 74.5% 66.7% 56.4% 47.0% 34.0% 21.5% 17.9% 0% 20% 40% 60% 80% 100% Russia Poland Portugal Belgium Spain Brazil France Japan
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 15 Summary  The importance of distribution channels for life insurance varies from country to country, although banks have prominent position in many market Creditor life insurance is one of the key lines to develop a well functioning life insurance markets in developing countries For protection-related life insurance products direct sales from insurance companies are still the most important channel with face-to-face being the most used interface
  • Distribution Channels for Life Insurance: A Global Perspective © Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 16 Any questions? Sources and related Finaccord publications: Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups Creditor Insurance in Europe Creditor Insurance in Latin America Life Bancassurance in the Asia-Pacific Region: Investment-Related Life Insurance and Retirement Savings Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings Life Bancassurance in Europe: Protection-Related Life Insurance Life Bancassurance in Latin America: Protection-Related Life Insurance Bancassurance country reports (covering 30+ different countries in the Asia-Pacific region, Europe and Latin America) Creditor Metrics: Consumer Approaches to Payment Protection Insurance in Europe Life Protection Metrics: Consumer Approaches to Protection-Related Life Insurance in Europe