9 October 2012
> www.lloyds.com/marketpresentations
> www.lloyds.com/countryprofiles
ENRICO BERTAGNA
Head of Southern, Eas...
© Lloyd’s
Content
2Lloyd’s
3Opportunities
1The Market
• Insurance Market Trends
• Reinsurance Market Trends
• Regulatory E...
© Lloyd’s3
The Market
• Macro Themes
• Insurance Market
• Outlook
1
© Lloyd’s
The ITALIAN
Insurance Market
1
© Lloyd’s
The Market>Macro Themes
Source: Market Intelligence calculation based on: IHS Global Insight and ISTAT (www.ista...
© Lloyd’s
The Market >Market Size
Chart: 2000-2011 Market Premiums by Class
in million €
Source: Market Intelligence calcu...
© Lloyd’s
THE Market >Top Players
2011 Market Leaders in billion €
Source: Market Intelligence calculation based on Ania (...
© Lloyd’s
1
* Income includes Reinsurance
2011 Total GWP
€36.3bn
82%
8%
7%
3%
Direct
Bancassurance Brokers
Agents
The Mark...
© Lloyd’s
The Market >Outlook 1
1 Price still the main driver of competition
But hardening of rates has started in Motor a...
© Lloyd’s10
Lloyd’s
• Background
• Business Profile
• Coverholders & Service Companies
• Events
2
© Lloyd’s
Lloyd’s >Background – Italy
2011
Lloyd’s Total
Gross Signed
Premiums
€ 443m
-2%
LLOYD’S GROSS SIGNED PREMIUMS (G...
© Lloyd’s
Lloyd’s >Business Profile
2007 – 2011 Premiums by type (in million €) 2011 GROSS SIGNED PREMIUMS*
Total € 443m
R...
© Lloyd’s
Lloyd’s >Coverholders & Service Companies
COVERHOLDER & SERVICE COMPANIES
1 Wholesale model is successful and ca...
© Lloyd’s
Lloyd’s > Events & Priorities
Source: Lloyd’s - 2013 Country Plan for Italy
2
The Lloyd’s Country Development Pl...
© Lloyd’s
Lloyd’s >Outlook 2
1 LLOYD’S IS VERY WELL POSITIONED IN THE COUNTRY
It is considered as a player of choice for s...
© Lloyd’s16
Opportunities
• Whom to target
• What to target
• Conclusions
3
© Lloyd’s
3Opportunities
1 Who to target
2 What to target
Local Carriers Pursue opportunities for new strategic alliances ...
© Lloyd’s
Conclusions
1 Economic situation could lead to better risk management
> Government needs to introduce urgent eco...
© Lloyd’s
Market Presentations >Mailing List & Downloads
1 VISIT www.lloyds.com/MARKETPRESENTATIONS
2 SIGN UP
Get invites ...
© Lloyd’s20
Appendix
 About Market Intelligence
A
Market Intelligence www.lloyds.com/marketintelligence
COMPARE COUNTRIES
 Benchmarking tool
 Heat map of key indicators
...
© Lloyd’s22
Disclaimer
This document is intended for general information purposes only. Whilst all care has been taken to ...
© Lloyd’s23
Upcoming SlideShare
Loading in …5
×

Analisi del Country Manager per l'Italia sulle sfide e le opportunità per i Lloyd’s in Italia

1,156 views

Published on

Analisi di Enrico Bertagna, Country Manager per l'Italia dei Lloyd's, sulle sfide e le opportunità per i Lloyd’s in Italia

Published in: Economy & Finance, Business

Analisi del Country Manager per l'Italia sulle sfide e le opportunità per i Lloyd’s in Italia

  1. 1. 9 October 2012 > www.lloyds.com/marketpresentations > www.lloyds.com/countryprofiles ENRICO BERTAGNA Head of Southern, Eastern Europe & Africa Country Manager for Italy MARKET PRESENTATION italy
  2. 2. © Lloyd’s Content 2Lloyd’s 3Opportunities 1The Market • Insurance Market Trends • Reinsurance Market Trends • Regulatory Environment • Whom to target • What to target • Conclusions • Business Profile • Coverholders & Service Companies
  3. 3. © Lloyd’s3 The Market • Macro Themes • Insurance Market • Outlook 1
  4. 4. © Lloyd’s The ITALIAN Insurance Market 1
  5. 5. © Lloyd’s The Market>Macro Themes Source: Market Intelligence calculation based on: IHS Global Insight and ISTAT (www.istat.it)  Fiscal consolidation, fight against tax evasion, liberalisation and labour market reforms have characterised the last year government programme  Further work on structural changes is key to reviving growth and competitiveness 1 HEADLINESBUSINESS ENVIRONMENT  2011 GDP: € 1,600bn which makes Italy the world’s 8th largest economy – 4th in Europe  Well diversified, industrial and service- based economy – (agriculture 1.8%, industry 24.9%, services: 73.3%)  A plethora of dynamic SMEs form the backbone of manufacturing sector  Exports increased by 11.4% in 2011  Current challenges: long-standing sovereign debt (at 120% of GDP) and slow growth  A new wave of changes will shape the country’s future and population well-being Chart: Italian GDP (Years & Indicator) in (million US$ & Real % Growth) Actual GDP Forecast GDP GDP Growth -1.2% -5.5% 1.8% 0.5% -1.9% -1.2% 0.0% 1.9% 1.8% 0 500 1,000 1,500 2,000 2,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 -6% -5% -4% -3% -2% -1% 0% 1% 2% 3%
  6. 6. © Lloyd’s The Market >Market Size Chart: 2000-2011 Market Premiums by Class in million € Source: Market Intelligence calculation based on: Ania (www.ania.it) and CEA (www.cea.eu)  Premiums volume decrease by 12% caused by huge drop in Life sector (- 18%). Non-life classes remain stable (+1.4%)  2011 Non-life combined ratio 97.9% compared to 100.2% in 2010 1 Motor Property Liability PA & Health MAT Miscellaneous 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  7. 7. © Lloyd’s THE Market >Top Players 2011 Market Leaders in billion € Source: Market Intelligence calculation based on Ania (May 2012); www.ania.it 478.6%  Italian insurers struggle to maintain market shares being too busy in solving internal issues - ratings cut in July for Generali, Unipol and Allianz  Further market consolidation to avoid bankruptcy – Fonsai and Unipol  Brokers say local insurers lack products innovation and personalisation and supporting services  Groups of agents are looking for alternative arrangements to maintain competitiveness 27%16.2% 31%7.5% 27%6.4% 20%6.0% 0%4.6% 20%4.3% 24%4.1% 30%4.0% 28%3.6% 31%3.4% 27%21.24% 31%19.17% 27%11.92% 20%10.97% 0%5.59% 20%4.47% 24%4.41% 30%3.67% 28%2.23% 31%1.88% Market Share Top 10 2011 Other 6,970 4,333 3,988 2,034 1,627 1,603 1,333 810 684 7,724 Total Market Concentration 1 87% 13%
  8. 8. © Lloyd’s 1 * Income includes Reinsurance 2011 Total GWP €36.3bn 82% 8% 7% 3% Direct Bancassurance Brokers Agents The Market >Distribution Chart: 2011 Top Broker Groups by income* (fees & commissions) in million € Chart: 2011 Distribution by channel (in % of total) Source: Market Intelligence calculation based on: ANIA, “Premi del lavoro diretto italiano 2010 - edizione 2011”, (2011), www.ania.it; distribution breakdown based on CEA, Statistics (2010), www.cea.eu 210 153 91 57 42 40 17 11 9 7 Marsh Aon Willis Ital Brokers Assiteca GPA Cambiaso Risso GBS UBI Marine & Aviation  Good levels of competition: Independent local brokers use specialisation as a way to compete with multinational brokers  Brokers market share increase: Against the grain of the market premium volume, brokers’ share grew by 4%. 48.9% of non-life premiums are now managed by brokers (2010: 47.7%)  Bancassurance and direct insurance growth: Banks focus more on life and standard policy insurances
  9. 9. © Lloyd’s The Market >Outlook 1 1 Price still the main driver of competition But hardening of rates has started in Motor and Property 2 3 Gap left by local players Doors are open for foreign insurers offering high level services and specialist underwriting skills Still underinsured but more sophisticated Opportunities for growth are still substantial but demand is moving towards more innovative and tailor-made products Relentless move towards alternative distribution The agents channel loses shares of Personal Line business to banks and aggregators 44
  10. 10. © Lloyd’s10 Lloyd’s • Background • Business Profile • Coverholders & Service Companies • Events 2
  11. 11. © Lloyd’s Lloyd’s >Background – Italy 2011 Lloyd’s Total Gross Signed Premiums € 443m -2% LLOYD’S GROSS SIGNED PREMIUMS (GSP)* SOURCE: Market Intelligence based on *Gross Signed premiums; Xchanging (2012); unaudited figures based on country of origin and processing by calendar year; see Appendix for details 1 2012 half-year premium volume up 2 2 Lloyd’s is considered a first choice insurer by most of local brokers3 Active participation in market discussions confirms opinion leader position for Lloyd’s SUMMARY 1 Pioneering initiative led to fruitful alliance with an agents group 2 Substantial positive press visibility from strengthened relationships with top media 3 Increase in public tender bids thanks to LIO proactive promotional role (web tools) SUCCESS STORIES 1 Support stakeholder exploiting Lloyd’s strong position in Italy (e.g. PI opportunity) 2013 FOCUS 2 Build new strategic partnerships 4 Maintain brand awareness and penetration Deliver enhanced operating efficiency 3 2011: 8% drop in Medmal business offset by increase in other classes 4 0 100 200 300 400 500 2007 2008 2009 2010 2011 Direct Reinsurance
  12. 12. © Lloyd’s Lloyd’s >Business Profile 2007 – 2011 Premiums by type (in million €) 2011 GROSS SIGNED PREMIUMS* Total € 443m Reinsurance € 265.1m Direct € 177.9m KEY TAKEAWAYS 2 1 Liability has been the growing class in recent years. Further development expected following new legislation on compulsory professional liability insurance. 2 3 Potential to differentiate in other specialist classes: CAT, Renewable Energy, SME 2011 Premiums by Class (in million €) SOURCE: Market Intelligence based on *Gross Signed premiums; Xchanging (2012); unaudited figures based on country of origin and processing by calendar year; see Appendix for details Despite financial crisis, production of super-yachts is increasing and Marine insurance sector continues to offer growth opportunities 0 50 100 150 200 Accident & Health Aviation Casualty Casualty Treaty Energy Marine Overseas Motor Property (D&F) Property Treaty UK Motor 0 100 200 300 400 500 2007 2008 2009 2010 2011 Direct Reinsurance * COUNTRY OF ORIGIN PREMIUMS  Policyholders are based or headquartered in this territory;  Premiums may be written outside this territory; X Not necessarily where risks are located X May differ to what is reported to local regulator (dependent on local requirements).
  13. 13. © Lloyd’s Lloyd’s >Coverholders & Service Companies COVERHOLDER & SERVICE COMPANIES 1 Wholesale model is successful and can be supported through its promotion amongst OMCs and other local intermediaries. 2 2 Source: Market Intelligence calculation based on Country Manager & Lloyd’s Delegated Authorities (April 2012) Numbers of Coverholders by region 3 CHs network could support Lloyd’s business development through cross-border activity in CEE. Need to anticipate solution to possible adverse implications of IMD2. Number of active binders by region 0 52 Coverholders, Service Companies & Open Market Correspondents  98 Coverholders  2 Service Companies  361 Open Market Correspondents 52 11 9 6 22 Other
  14. 14. © Lloyd’s Lloyd’s > Events & Priorities Source: Lloyd’s - 2013 Country Plan for Italy 2 The Lloyd’s Country Development Plan contains key Market Development Activities and a clear Vision VISION To maintain Lloyd’s leadership position in Italy as a broker friendly market and a key provider in the Liability area. MARKET DEVELOPMENT PRIORITIES 1. Implement recommendations from the 2012 strategic review of local distribution network 2. Maximise positive effects of Lloyd’s strong position in Italy 3. Identify potential partners for strategic alliances 4. Maintain the highest level of Lloyd’s brand penetration and awareness in the country 2013 COUNTRY DEVELOPMENT PLAN 2012 EVENTS 1 LLOYD’S – ILLCA EVENT Over 500 participants - Meet the Market + Networking Event + 2 Class of Business event in one day 2 3 © Lloyd’s 1 KEY FACTS 2 KEY STATISTICS 3 BUSINESS ENVIRONMENT 4 INSURANCE ENVIRONMENT 5 LLOYD’S BUSINESS  Positioning Lloyd’s as an unquestionable leader on non-life speciality insurance and reinsurance market in Poland. Lloyd’s is well understood by the top local intermediaries contacting Market and bringing business there on a daily basis. The coverholder’s network is well established across the country and the local coverholders deliver the substantial part of Lloyd’s country production.  Build a network of at least 15 coverholders at the end of 2012.  Targeting 20 top insurers in the country and supporting them in developing business with Lloyd’s.  Promoting use of Lloyd’s Polska office in Warsaw.  Improving the visibility and understanding of Lloyd’s among the local stakeholders.  Promoting Lloyd’s in the country. INDUSTRY EVENTS  Annual Brokers Congress, May 2012. Events & Market Intelligence LLOYD’S EVENTS  Polish Risk Managers Visit to London, 12 March 2012.  Reinsurance Rendezvous, Warsaw, 5 June 2012.  Regional event in Hungary, Budapest, 26 June 2012.  Meet the Market Event, Warsaw, 11 September 2012. MARKET INTELLIGENCE > www.lloyds.com/marketintelligence> www.lloyds.com/events Country Profile Market Presentation Country Roundup Lloyd’s Vision 2012 Lloyd’s key Initiatives 2012 SUMMER COCKTAIL Kiln 50th Anniversary - Record attendance: + 30% Emerging risks event IN NOVEMBER Supply Chain Risks Report – UK Embassy in Rome 2013 EVENTS LLOYD’S – ILLCA EVENT New format 1 MANAGING AGENT RECEPTION AT LIO Marketing opportunity for MA THE BUSINESS OF ART In collaboration with specialist loss adjusting firm 2 3 4 CLASS OF BUSINESS EVENTs • Liability and Cyber Risks • Renewable Energy and CAT 5 CH FACT FINDING MISSION TO CEE Encouraging cross border business
  15. 15. © Lloyd’s Lloyd’s >Outlook 2 1 LLOYD’S IS VERY WELL POSITIONED IN THE COUNTRY It is considered as a player of choice for specialist classes by local brokers and brand awareness and penetration is very high in the country 2 LOCAL NETWORK AND PARTNERSHIPS Well-established CHs and new connections with agents, banks and trade associations are there to support MAs who wish to enter the market 3 ITALIAN OFFICE IMPROVING EFFICIENCY Stakeholders benefit from an efficient and competent platform which makes business transactions easier and safer
  16. 16. © Lloyd’s16 Opportunities • Whom to target • What to target • Conclusions 3
  17. 17. © Lloyd’s 3Opportunities 1 Who to target 2 What to target Local Carriers Pursue opportunities for new strategic alliances to offer specialist insurance solutions Marine Market share growth based on Lloyd’s legacy Local Coverholders To implement recommendations from 2012 strategic review: stimulating more business, supporting cross border activity and minimise potential threats to CH model Lloyd’s Brokers Collaboration on new strategic alliances and for increased support of the wholesale broker model Natural Disasters Continued involvement in the craetion of a CAT pool Casualty Exploiting new legislation introducing compulsory professional liability insurance and gap left by local insurers Renewable energies Penetration of sector through alliances with local trade association 3
  18. 18. © Lloyd’s Conclusions 1 Economic situation could lead to better risk management > Government needs to introduce urgent economy growth measures and is working on building a safer environment introducing new legislation State no longer able to sustain CAT and other social costs – to be transferred to insurance industry Few large local insurers unable to meet clients’ demand The Lloyd’s Office in Italy is there to help Managing Agents and Brokers access & develop profitable business in the country 2 Well established distribution network – a key asset > The largest Coverholder network in Europe > Wholesalers and new channels (agents and banks) to embrace new opportunities 3 Strategic alliance with local brokers and risk managers > Continue to promote Lloyd’s as a broker friendly market > Risk managers – a key stakeholder group 333
  19. 19. © Lloyd’s Market Presentations >Mailing List & Downloads 1 VISIT www.lloyds.com/MARKETPRESENTATIONS 2 SIGN UP Get invites to all Market Presentations 2 3 VIEW Schedule of future Market Presentation 3 DOWNLOAD Any Market Presentation 4 4
  20. 20. © Lloyd’s20 Appendix  About Market Intelligence A
  21. 21. Market Intelligence www.lloyds.com/marketintelligence COMPARE COUNTRIES  Benchmarking tool  Heat map of key indicators  Interactive Google Motion Chart 1 MARKET PRESENTATIONS  Local perceptions & market statistics  Key opportunities & challenges  Lloyd’s activities 2 COUNTRY PROFILES  Summary fact sheets on 50* territories  overview of insurance market  Guide to Lloyd’s premiums & licence * by end of 2012 3 COUNTRY ROUNDUPS  News Update from Country Managers  Digest of insurance & reinsurance news  Focus on local brokers, CH and MAs 4 CLASS REVIEW  Class of Business Analysis by territory  Market share analysis  Downloadable triangulations 5 QUESTIONS  Visit our website  Contact us directly  Leave your feedback ? FREE DOWNLOAD AT www.lloyds.com/MARKETINTELLIGENCE DOWNLOAD CONTENT SUBSCRIBE TO OUR MAILING LIST SUBSCRIBE TO OUR MAILING LIST a
  22. 22. © Lloyd’s22 Disclaimer This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief obtained in this document. Lloyd’s Data Limitations Please note the information contained in this document is based upon data collected from Xchanging and may be incomplete for some classes of business; for instance a substantial figure, which is missing from the REG 258 data set is comprised of UK Motor, which is not processed by Xchanging. Gross Premiums: Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but before the deduction of outward reinsurance premiums. Lloyd’s figures are based on gross written premiums based on figures processed by Xchanging by processing year and country of origin. Country of Origin: denotes the country from where demand for the insurance / reinsurance emanates; i.e. the coverholder or policyholder, irrespective of the country to which the risk is classified for regulatory reporting purposes. Processing Year: relates to the calendar year in which the premium, additional or return premium is processed by Xchanging, irrespective of the actual underwriting year of account of the risks (which is determined by the inception date of each risk). Example: A policy holder in the UK insuring a holiday home in France would be classified as a UK risk by Country Of Origin, but French for regulatory reporting purposes. Similarly a risk incepting on 1st December 2007 would be classified at 2007 underwriting year of account but may not be processed by Xchanging until 2008 and so be allocated to the 2008 processing year Exchange Rate Policy Annual average exchange rates are used in all conversions. Appendix > Data Limitations & Disclaimer
  23. 23. © Lloyd’s23

×