Tobias Schneider's presentation on Bancassurance, from the trueventus Bancassurance conference in Tanzania, 27-28 August

1. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
© Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 1
Bancassurance Models
Around the World
Dynamics in Bancassurance: Perspectives
Worldwide and for sub-Saharan Africa
Presentation at the Trueventus Bancassurance Conference
Dar es Salaam, August 27th – 28th 2014

2. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Agenda
 Factors that shape bancassurance markets
 Global developments: bancassurance strategies used by
the world's 125 largest retail banking groups
 Macro-economic development in sub-Saharan Africa
 Development of the banking and insurance sector in sub-
Saharan Africa
 Bancassurance in sub-Saharan Africa: regulatory
environment, product range, and operating models
 Future outlook

3. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Key Factors that Shape Bancassurance Markets
Bancassurance
1. Meta level: Regulation Forced divestment
Consumer expectations
2. Country level: Regulation Market characteristics

4. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Key Factors that Shape Bancassurance Strategies
1. Meta level
New regulation: New capital requirements under the
Basel III Accords
Forced divestment: Several banking groups have been
forced to divest assets
2. Country level
Regulation: Mediation laws, insurance shareholding
of banks, product regulation
Market characteristics: Banking and insurance sector, cultural factors

5. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Bancassurance Strategies on a Meta Level
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, 2013
Source: Finaccord Global Bancassurance reports
Captive,
41.6%
Captive and
joint venture,
13.6%
Joint
venture,
10.4%
None, 34.4%

6. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Bancassurance Strategies on a Meta Level: Captives and JVs
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
French
French
French
Divesting
Divesting
"Role model of success"
French

7. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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0%
20%
40%
60%
80%
100%
Turkey Brazil Spain France S. Korea Russia Poland Germany UK Chile Japan
7
The importance of the bancassurance channel
Estimated distribution share of bancassurance in total life insurance, 2013
Source: Finaccord Global Bancassurance reports
Regulation
New concept /
strong agent
tradition
"Southern Europe model"
PPI scandal

8. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Bancassurance in sub-Saharan Africa

9. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Macro-economic development
GDP in current prices in sub-Saharan Africa, segmented by country, 2008, 2014, and 2020 (forecast)
Source: IMF USD billion0 100 200 300 400 500 600
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
As of 2008 As of 2014 2020 (forecast) Series4

10. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Macro-economic development
PPP per capita in sub-Saharan Africa, segmented by country, 2008, 2014, and 2020 (forecast)
Int. dollars0 4,000 8,000 12,000 16,000
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
As of 2008 As of 2014 2020 (forecast) Series4
Source: IMF

11. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Macro-economic development
Residential mortgage and non-mortgage consumer balances outstanding, 2009 to 2013
Source: Finaccord research
0
50
100
150
200
2009 2010 2011 2012 2013
Residential mortgage balances outstanding
Consumer non-mortgage balances outstanding
USD billion
France in 2013:
USD 1.21 trillion
(mortgage
lending)
USD 331.7 billion
(consumer
lending)

12. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Macro-economic development
Consumer non-mortgage balances outstanding, segmented by country, 2013
Source: Finaccord research
0%
20%
40%
60%
80%
100%
Mortgage balances Consumer lending balances
South Africa Nine other countries in sub-Saharan Africa

13. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the banking sector
Number of branches in sub-Saharan Africa, segmented by country, 2005 and 2013
0 1,000 2,000 3,000 4,000 5,000 6,000
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
As of 2005 As of 2013 Series3
Source: IMF

14. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the banking sector
Number of branches per 100,000 adults in sub-Saharan Africa, segmented by country, 2013
12.7
5.0
6.1
6.0
4.0
5.5
10.3
2.6
3.0
4.7
0 5 10 15
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
Brazil: 46
Morocco: 22
Tunisia: 17
Source: IMF

15. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the banking sector
Number of deposit accounts in sub-Saharan Africa, segmented by country, 2005 to 2013
million0 10 20 30 40 50 60
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
As of 2005 As of 2013 Series3
Source: IMF

16. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the insurance sector
GWP for life and non-life insurance in ten sub-Saharan African countries, 2009 to 2013
Source: Finaccord research, national sources
0
10
20
30
40
50
60
70
2009 2010 2011 2012 2013
Life insurance Non-life insurance t
USD billion

17. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the insurance sector
Nominal and real CAGRs for life and non-life insurance, segmented by country, 2009 to 2013
-5% 0% 5% 10% 15% 20% 25% 30% 35%
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
Total
Nominal Real tricker
Source: Finaccord research, national sources

18. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the insurance sector
Life and non-life insurance GWP per capita in sub-Saharan Africa, segmented by country, USD, 2013
44
20
20
35
8
11
6
4
23
0 20 40 60
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
1,060
1,028
European average in
2012: USD 1,724
Source: Finaccord research, national sources

19. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the insurance sector
Life and non-life insurance GWP as percentage of GDP in sub-Saharan Africa, segmented by country, 2013
0.8%
1.7%
1.1%
3.4%
1.3%
0.6%
15.5%
0.9%
0.7%
1.5%
0% 5% 10% 15% 20%
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
European average in
2012: 6.7%
In line with Eastern
European countries
Source: Finaccord research, national sources

20. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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0% 20% 40% 60% 80% 100%
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
Average
Life insurance Non-life insurance
20
Development of the insurance sector
The relative importance of life and non-life insurance in sub-Saharan Africa, segmented by county, 2013
Source: Finaccord research, national sources

21. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the bancassurance market
Regulatory environment for bancassurance in sub-Saharan Africa, overview of current status
Source: Finaccord research, national regulators
Country Assessment Comment
Angola No specific restrictions
Côte d'Ivoire No specific restrictions
Ghana No specific restrictions
Kenya No specific restrictions
Mozambique No specific restrictions
Nigeria Banks not allowed to own an insurer directly
South Africa No specific restrictions
Tanzania Currently no clear regulatory framework
Uganda Banks not permitted to sell stand-alone insurance
Zambia Currently no clear regulatory framework

22. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the bancassurance market
Involvement in bancassurance of the ten largest retail banks in each country, 2014
Source: Finaccord research 0% 20% 40% 60% 80% 100%
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
Average
Bundled products offered Stand-alone products offered

23. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the bancassurance market
Average number of insurance types offered by the ten largest retail banks in each country, 2014
Source: Finaccord research
2.3
5.5
3.2
5.6
4.9
4.2
6.1
3.4
2.3
3.2
4.3
0 2 4 6 8
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
Average

24. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the bancassurance market
Overall provision rates for insurance types offered by the ten largest retail banks in each country, 2014
18.0%
85.6%
13.8%
89.5%
21.0%
4.0%
64.0%
17.0%
4.0%
53.0%
10.0%
20.0%
15.0%
4.0%
18.0%
0% 20% 40% 60% 80% 100%
Accident insurance
Creditor insurance - loans
Creditor insurance - credit cards
Creditor insurance - mortgages
Funeral expenses insurance
Health / hospital cash plans
Household insurance
Investment-related life insurance
Medical expenses insurance
Personal motor insurance
Retirement savings
Risk life insurance
Travel insurance
Agricultural insurance
Commercial insurance
Source: Finaccord research

25. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Development of the bancassurance market
Weighted operating models for insurance offered by the ten largest retail banks in each country, 2014
0% 20% 40% 60% 80% 100%
Angola
Côte d'Ivoire
Ghana
Kenya
Mozambique
Nigeria
South Africa
Tanzania
Uganda
Zambia
External underwriter Captive underwriter
JV underwriter Multiple external underwriters
Other Series6
Source: Finaccord research

26. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Future outlook
Forecast for gross written premiums for life and non-life insurance in sub-Saharan Africa to 2020
0
20
40
60
80
100
120
2013 2020
Life insurance Non-life insurance t
USD billion
Source: Finaccord research

27. Dynamics in Bancassurance: Perspectives Worldwide and for sub-Saharan Africa
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Any questions?
Sources and related Finaccord publications:
Bancassurance in sub-Saharan Africa: Current Status and Future Perspectives to 2020
Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups
Bancassurance country reports (covering over 30 different countries in the Asia-Pacific
region, Europe and Latin America)