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Competing in a distribution dynamic

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  • Podaci za grafikone se nalaze u fajlu “Pregled po društvima.xls” (Š-S)
  • Transcript

    • 1. Vienna, Jun 2010. Margerita Boskovic , director Distribution Sales Channels Department DUNAV Insurance Company
    • 2.  
    • 3. 154,0
    • 4. Insurance Market in Serbia - significant improvements are obvious In bilion RSD 2004 2005 2006 2007 2008 2009 trend Total premium 22,6 34,7 38,3 44,8 52,2 53,5 Life ins. premium 1,7 3,3 4 4,9 6,3 7,9 share in total premium 7,4% 9,5% 10,6% 11% 12,2% 14,7% Non - life ins. premium 20,9 31,4 34,3 39,8 45,8 45,7 Insurance density € 38 € 55 € 65 € 77 € 80 € 76 Life insurance premium per capita € 3 € 5 € 7 € 8 € 10 € 1 1 Insurance penetration 1,6% 2 ,1 % 1, 9 % 1,9% 1,9% 1,9% Total assets 30,8 46 , 4 56 70,6 84,8 99,2 Capital 15,6 18,6 20,7 24,7 25,3 29,2 Technical reserves 11,5 22,9 28,9 39,5 51,5 60,5 Number of IC 40 19 17 20 24 26 Number of employees 5407 7283 7876 9697 11713 11142
    • 5. Serbia Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 6.
      • Our financial sector did not operate with complex financial instruments, and was not plagued with so called toxic assets.
      • IMF forecast : Serbia will record 2% (2,3%) of GDP decrease in 200 9.
      • Activities focused on:
      • development and improvement of risk management functions ;
      • UW developing in the process of selling policies ;
      • strengthening corporate management , which requires
      • education of insurants and improved sales network, also all kind
      • of distributive channels
      Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 7.
    • 8. Sombor Zrenjanin Novi sad Srem Pančevo Šabac Beograd Požarevac Smederevo Valjevo Zaječar Užice Čačak Kraljevo Kragujevac Jagodina Niš Leskovac Kruševac Vranje Pirot Sales centres of Dunav Insurance Company
    • 9.  
    • 10.
      • - INSURANCE COMPANY (2 nd in Rep. Srpska - 19% market share)
      - REINSURANCE COMPANY (1 st place in Serbia, over 70% market share in 200 8 ) - PENSION FUND (1 st place in Serbia, 50 % market share)
    • 11. LIFE – 4 th place ( cca 10 % market share) NON-LIFE - 1st place ( cca 27,4 % market share)
    • 12. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 13.
      • Sales channels according to legal act:
      • INTERNAL – sales force
      • EXTERNAL :
      • Brokers - 37
      • Legal Entities - 65
      • Physical Entities - Enterpreneurials - 123
      • Banks - 16
      • Tourist Agency - 1
      • Physical Entities licenced for insurance - 800
      • Also, insurers tend to develop alternative channels essential for segmentated clients, various by structure and type of sales and consistant with the needs and comfort aproach to the client.
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 14.
      • Elements of encouragement ambient in insurance :
      • Tax deductions in part that is in correlation with the development of life insurance;
      • Expanison of distributive channels - sales force by legal changes that are expected in the following period.
      • Main goal of these changes is to increase the number of employees, it is assumed that 5000 people can be educated in life insurance sales, therefore this can be practised as an additional business (current legal stand inhibit isnurers from having any additional practise).
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 15. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 16. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 17.
      • Dunav evenly developes external and internal network guided by the following principles:
      • Maximum usage of advantages in internal network expertise (UW capacity, claim adjustment, extended network), with the concern on profitabillity of internal network.
      • Operating with large number of external network sales – conditioned by the structure and client demands as well as actions on the market;
      • In the process of Company transformation focus has altered from product to client . Client segmentation has conditioned defining sales channels determening which is the best way of aproaching a certain client category.
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 18.
      • Primal strategic directions which contain all of the standard and nonstandard products:
      • offer ing an integrated product and services
      • improvement cross sell and up sell technique of
      • selling – better focus on the client
      • concentrate on comparative advantage s
      Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 19.
      • Internal network – 30% in the MTPL area and 50% in other types of nonlife insurance
      • Main objective is to increase sales via internal network using the following tools :
      • Sales plans and defining  product mix ( for empolyees)
      • Cross sell tehnique , education
      • Recuperation of businesses that maintain MTPL
      • Investing in our own capacity, in developing our front desk sales, instalation and purchasing new Tehnical inspections ) of the highest standards
      Maximum usage of advantages in internal network expertise Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 20. SHAREHOLDERS MEETING Sales and marketing IT Claims Shared functions departmen t Insurance Directorates Individual clients and entrepreneurs Directorate SME’s Directorate Major corporate clients Directorate Life insurance Directorate MANAGEMENT SUPERVISORY BOARD Finance Legal Departm. Internal audit Actuarial and Statistics departmen t HR Procurement and maintaines
    • 21. Client Segmentation and distributive channels eligable for sales: Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o. Individual segment Small and medium businesses segment Large Commercial Clients “ Dunav” Sales network “ Dunav” Sales network “ Dunav” Sales network MOT’S Independent Agents Independent Agents Independent Agents Brokers Brokers Municipal utilities Leasing companies   Associations Associations   Travel agencies Call centers   Call centers Internet   Internet Banks   Banks     Mobile phones    
    • 22. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o. Individual Small & Medium Businesses Large comercial utilities Products / Segment       Automobile liability insurance       Hard Asset       General liability       Accident       Travel insurance       Life insurance       Pension insurance       Health insurance       Product liability       Farming insurance       Marine insurance/Cargo       Machine breakage insurance       Group Accident insurance       Group Health isnurance       Group Life insurance       Group Pension insurance       Main product Aditional product Periodical product Unnecessary product
    • 23. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o. Product importance Products Sales network. "Dunav" Vehicle Inspection Agents (independent) Brokers Companies/Associations Leasing companies Municipal Utilities Banks Call centres Internet Travel agencies Very important Automobile liability insurance                       Very important Estate                       Very important General Liability                       Medium important Accident insurance                         Travel insurance                       Less important Life insurance                       Less important Pension insurance                       Less important/out Health insurance                       Medium important Product liability                       Very important Farming insurance                       Medium important Marine insurance/Cargo                       Medium important Machine breakage insurance                       Very important Group Accident inurance                       Less important/out Group Health isnurance                       Medium important Group Life insurance                     Medium important Group Pension insurance                       Main channel Additional channel Periodical channel Future chanell Unnecesary channel
    • 24. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o. Product importance Products Sales network. "Dunav" Vehicle Inspection Agents (independent) Brokers Companies/Associations Leasing companies Municipal Utilities Banks Call centres Internet Travel agencies Very important Automobile liability insurance                       Very important Estate                         General Liability                       Very important Accident insurance                       Medium important Travel insurance                       Medium important Life insurance                       Less important Pension insurance                       Less important/out Health insurance                         Product liability                       Medium important Farming insurance                       Medium important Marine insurance/Cargo                       Medium important Machine breakage insurance                         Group Accident inurance                         Group Health isnurance                         Group Life insurance                         Group Pension insurance                       Main channel Additional channel Periodical channel Future channel Unnecesary channel
    • 25. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o. Product importance Products Sales network. "Dunav" Vehicle Inspection Agents (independent) Brokers Companies/Associations Leasing companies Municipal Utilities Banks Call centres Internet Travel agencies Very important Automobile liability insurance                       Very important Estate                       Very important General Liability                         Accident insurance                         Travel insurance                         Life insurance                         Pension insurance                         Health insurance                       Medium important Product liability                       Very important Farming insurance                       Medium important Marine insurance/Cargo                       Medium important Machine breakage insurance                       Medium important Group Accident inurance                       Less important/out Group Health isnurance                       Medium important Group Life insurance                       Medium important Group Pension insurance                       Main channel Additional channel Periodical channel Future channel Unnecesary channel
    • 26. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 27. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 28.
      • What determens insurance market in Serbia is high presence of (MTPL) – 30% of the total premium is generated from MTPL.
      • Sales structure of MTPL:
      • 70 % via external sales channels – agencies and tehnical inspections (MOT)
      • 30% is sold via internal network.
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 29.
      • The only way in conducting a concept of enhancement market share and cost decline is investing in our own capacity:
      • Front desk sales
      • Front desk invesments
      • Development of Precompensation system
      • Sales channels of „Dunav Auto“
      • Recuperation of businesses that maintain MOT’s
      • Instalation and purchasing of new Tehnical inspections in cooperation with „Dunav Auto“
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 30. Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 31.
      • Brokers – relatively new channel on Serbian market
      • Problem characteristics of MTPL – MOT
      • Banking insurance - used for non-life products selling
      • IT tehnology, mobile operators, call center –
      • on the begining
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 32.
      • Brokers – relatively new channel on Serbian market
      • Preferences:
      • Rarely extrapole for physical entities
      • Mostly clients are taken by the insurer – so the brokers are our competitors and a great challenge is good relation with them
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 33.
      • Concerning Tehnical inspections
      • obsolete Motor pool (around 2 million vehicles – average age of the vehicles is 12 years)
      • MOT’s are conducted every year
      • appliance of the new legal act that standardise the rules of tehnical inspections (MTPL)
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 34.
      • It still in its begining allthough in the end of the year 2006. it was enabled by an legal act for the banks to do business in presenting insurance.
      • Characteristics and variety in relation to the foreign market:
      • This sales channel is more succsesfull in non life insurances and thereby is uprising ;
      • Life insurances are sold less trough this channel for multiple reasons:
      • Low level of developing in life insurance due to historical reasons (inflation, war, etc);
      • Life insurance policy is not a liable element with credit products.
      • Productivity trough banks sales is 2 times larger in relation with the traditional agent network.
      • Bankassurance
      Vienna, Jun 2010. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
    • 35. Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.

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