Finaccord Uniglobal presentation, 22-05-14

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Presentation at Uniglobal, 22 May 2014

Presentation at Uniglobal, 22 May 2014

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  • 1. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 1 Global Trends in Distribution Systems Used for Insurance UNIGLOBAL 8th Annual Insurance Distribution Forum 22nd May 2014
  • 2. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 2 Agenda Defining the distribution universe for insurance products  traditional channels  non-traditional channels  channels and interfaces International perspectives in insurance distribution  car dealers and manufacturers  mobile phone network operators  retailers Any questions?
  • 3. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 3 Defining the distribution universe for insurance products: traditional channels Direct sales Insurance agents Insurance brokers / financial advisers
  • 4. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 4 Defining the distribution universe for insurance products: non-traditional channels Financial partners Commercial partners Not-for-profit affinity partners Sector-specific partners Aggregators Worksite
  • 5. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 5 Defining the distribution universe for insurance products: financial partners Financial partners Commercial partners Not-for-profit affinity partners Sector-specific partners Aggregators Worksite Banks and similar institutions Credit unions Specialised lenders Other insurance companies
  • 6. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 6 Defining the distribution universe for insurance products: commercial partners Automotive associations (e.g. AA, ADAC) Cashback websites Electricity, gas and water companies Football and other sports clubs Loyalty schemes Media entities Post Office Supermarkets and other retailers Telecoms companies Financial partners Commercial partners Not-for-profit affinity partners Sector-specific partners Aggregators Worksite
  • 7. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 7 Defining the distribution universe for insurance products: not-for-profit affinity partners Charities Educational institutions Professional associations Sports organisations Trade unions Financial partners Commercial partners Not-for-profit affinity partners Sector-specific partners Aggregators Worksite
  • 8. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 8 Defining the distribution universe for insurance products: sector-specific partners Airlines Automotive clubs Car dealers Car manufacturers Estate agents Pet owners' clubs Travel companies Vets Financial partners Commercial partners Not-for-profit affinity partners Sector-specific partners Aggregators Worksite
  • 9. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 9 Defining the distribution universe for insurance products: channels and interfaces Direct sales Insurance agents Insurance brokers / financial advisers Financial partners Commercial partners Not-for-profit affinity partners Sector-specific partners Aggregators Worksite Traditional channels Non-traditional channels CHANNELS INTERFACES Face-to-face Online Laptop / desktop Tablet Mobile phone Inbound phone Outbound phone Post
  • 10. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 10 Defining the distribution universe for insurance products: generally speaking... - Non-traditional distribution channels are gaining ground against traditional ones, especially for insurance bought by consumers, because: > they are often more effective (in terms of cost of use, customer contact / knowledge, technology etc.) > they often have a strong incentive to expand in insurance (e.g. because it offers higher margins than their core business); - online sales are gaining ground against all other distribution interfaces, especially for insurance bought by consumers.
  • 11. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 11 International perspectives in insurance distribution: car dealers and manufacturers (1) - Global research covering around 2,500 car dealers and over 120 manufacturer brands in more than 40 countries worldwide; - coverage of motor insurance, extended warranties, GAP insurance and niche (e.g. minor damage) insurance plus road assistance and prepaid service contracts (plus finance and leasing) marketed to consumers in conjunction with passenger car purchase (i.e. not fleets or commercial vehicles); - valuation of insurance, warranty and assistance policies sold to consumers via car dealers and manufacturers (split between new and used cars).
  • 12. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 12 International perspectives in insurance distribution: car dealers and manufacturers (2) Total insurance, warranty and assistance GWP and other revenues sold via automotive trade as % of value of sales of new and used cars to consumers 6.6% 6.5% 6.4% 5.1% 4.4% 4.3% 4.1% 3.6% 2.3% 2.1% 0.0% 1.5% 3.0% 4.5% 6.0% 7.5% Source: Finaccord Global Consumer Automotive Financial Services reports
  • 13. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 13 International perspectives in insurance distribution: car dealers and manufacturers (3) Segmentation of total insurance, warranty and assistance GWP and other revenues sold via automotive trade to consumers buying new and used cars 0% 20% 40% 60% 80% 100% Other policies * Extended warranties Motor insurance Source: Finaccord Global Consumer Automotive Financial Services reports * Other policies include creditor, GAP and niche (e.g. minor damage) insurance plus road assistance and prepaid service contracts
  • 14. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 14 International perspectives in insurance distribution: car dealers and manufacturers (4) Insurance, warranty and assistance (excluding motor insurance) GWP and other revenues sold via automotive trade as % of value of sales of new and used cars to consumers Source: Finaccord Global Consumer Automotive Financial Services reports 2.2% 0.6% 3.1% 2.9% 3.6% 1.5% 4.1% 2.9% 2.3% 1.6% 0% 1% 2% 3% 4% 5%
  • 15. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 15 International perspectives in insurance distribution: mobile phone network operators (1) - Global research covering 255 mobile phone network operator brands across 70 countries worldwide; - coverage of accident, bill payment protection, health, household, identity protection, life, mobile gadget, mobile phone, motor, and travel insurance plus home, legal, medical and road assistance, and miscellaneous other insurance and assistance; - 125 mobile phone network operator brands drawn from 78 telecoms groups act as distributors of insurance or assistance products in scope, with 307 individual product initiatives in total.
  • 16. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 16 International perspectives in insurance distribution: mobile phone network operators (2) Unweighted provision rate Weighted provision rate 36.1% 13.3% 4.3% 0.8% 0.8% 2.0% 9.4% 27.2% 13.4% 2.8% 0.8% 0.3% 15.3% 22.3% 0% 20% 40% 60% 80% 100% Mobile phone insurance Mobile gadget insurance Bill payment protection insurance Identity protection insurance / assistance Motor insurance Household insurance Travel insurance / assistance Source: Finaccord Global Mobile Operators: Strategies in Insurance and Assistance report % of mobile operator brands worldwide offering insurance / assistance type Note: weighted data weights provision rate in accordance with number of mobile subscribers serviced by each active mobile phone network operator
  • 17. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 17 International perspectives in insurance distribution: mobile phone network operators (3) Accident insurance Health insurance Life insurance Home assistance Legal assistance Medical assistance Road assistance Miscellaneous insurance / assistance Source: Finaccord Global Mobile Operators: Strategies in Insurance and Assistance report % of mobile operator brands worldwide offering insurance / assistance type 8.6% 3.1% 6.3% 5.9% 5.5% 10.2% 7.5% 6.7% 23.1% 4.4% 17.8% 4.0% 4.2% 18.2% 6.9% 7.5% 0% 20% 40% 60% 80% 100% Unweighted provision rate Weighted provision rate Note: weighted data weights provision rate in accordance with number of mobile subscribers serviced by each active mobile phone network operator
  • 18. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 18 International perspectives in insurance distribution: retailers (1) - Global research covering over 6,300 major retail brands in 60 countries worldwide; - focus on 'mainstream' insurance and assistance, namely accident, dental, health, household, life, motor, pet, travel and other insurance plus assistance products; - creditor insurance linked to consumer finance, extended warranties, 'product insurance' for electronic goods and insurance or assistance linked to retailer payment cards are not included in analysis; - 259 major retail brands drawn from 150 retail groups act as distributors of insurance or assistance products in scope, with 1,095 individual product initiatives in total; - these are all up from previous research from 2010 when equivalent figures were 232, 106 and 847, respectively.
  • 19. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 19 International perspectives in insurance distribution: retailers (2) 4.1% 3.1% 3.6% 4.8% 10.8% 3.9% 7.3% 3.0% 4.5% 4.1% 0% 5% 10% 15% Total Online only Offline only Mixed South Africa North America Latin America Europe Australasia Asia-Pacific Source: Finaccord Global Retailer Insurance and Assistance report % of major retail brands offering insurance or assistance products Note: insurance and assistance products in scope are accident, dental, health, household, life, motor, pet, travel and other insurance plus assistance products. Creditor insurance linked to consumer finance, extended warranties, 'product insurance' for electronic goods and insurance or assistance linked to retailer payment cards are not included in analysis.
  • 20. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 20 International perspectives in insurance distribution: retailers (3) Source: Finaccord Global Retailer Insurance and Assistance report % of major retail brands offering insurance or assistance products 4.1% 9.3% 3.5% 3.7% 2.7% 3.0% 1.9% 1.7% 11.2% 1.1% 1.4% 0% 5% 10% 15% Total Supermarket/hypermarket Sporting goods Speciality Health / beauty Fuel Fashion DIY / furniture / home Departmentstore / variety Consumer electronics Books and media Note: insurance and assistance products in scope are accident, dental, health, household, life, motor, pet, travel and other insurance plus assistance products. Creditor insurance linked to consumer finance, extended warranties, 'product insurance' for electronic goods and insurance or assistance linked to retailer payment cards are not included in analysis.
  • 21. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 21 International perspectives in insurance distribution: retailers (4) Source: Finaccord Global Retailer Insurance and Assistance report Motor insurance, 15.4% Household insurance, 15.3% Life insurance, 14.4% Accident insurance, 14.0% Health insurance, 11.5% Other insurance, 8.5% Travel insurance, 6.7% Pet insurance, 5.4% Assistance, 4.6% Dental insurance, 4.3%
  • 22. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance 22 Any questions?
  • 23. © Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com Global Trends in Distribution Systems Used for Insurance Finaccord is a leading market research, publishing and consulting company specialising in financial services. We provide our clients with insight with a particular focus on marketing and distribution strategies, including affinity and partnership marketing. Our areas of expertise include: affinity and partnership marketing; automotive financial services; bancassurance; commercial non-life insurance brokers; consumer intelligence; extended warranties and insurance for white, brown and grey goods; home emergency insurance and assistance; insurance and assistance linked to payment cards and bank accounts; mobile gadget and phone insurance; professional indemnity insurance; retailer payments, banking, insurance and assistance; road assistance; small business insurance; trade credit insurance; and travel insurance and assistance. Our international network of consultants is able to deliver information quickly and accurately across a range of countries worldwide, basing research projects on robust data and knowledge. Contact us The Office Farringdon 24 Greville Street London, EC1N 8SS Phone: +44 20 3178 2556 Fax: +44 20 7198 7902 Email: info@finaccord.com www.finaccord.com 23