Report prospectus global_mobile_operators_strategies_insurance_assistance

Global Mobile Operators: Strategies in Insurance and Assistance

Global Mobile Operators:
Strategies in Insurance and Assistance

Report Prospectus

June 2012

Expertise in financial services
© Finaccord Ltd., 2012 Web: www.finaccord.com. E-mail: info@finaccord.com 1


Prospectus contents

Page

What is the research? 3
What is the rationale? 4
What methodology has been used? 5
Which mobile operator groups are covered within the strategic analysis? 6
How do mobile operator brands covered break down by region and group? 7
What is the report structure? 8
What are the key features of the research? 9
How can the research be used? 10
How can the interactive Partner BASE™ be used? 11
Who can use the research? 12
What are some of the key findings? 13-16
What is the cost and format? 17
How can the research be purchased? 18



What is the research?
Global Mobile Operators: Strategies in Insurance and Assistance is a new report and interactive
Partner BASE dataset that provides a detailed worldwide overview of the fast-growing involvement
of mobile operator brands and groups in insurance and assistance. For 255 brands spread across
70 countries, it outlines their activity and strategic partnerships for the following separate insurance
and assistance categories:

• insurance: mobile phone, mobile gadget, bill payment protection, identity protection, motor,
household, travel, accident, health, life;
• assistance: home, legal, medical, road.

In relation to identity protection and travel insurance, it should be noted that these may also include
assistance elements, either in isolation or combined with insurance coverage. In addition, the
research also captures initiatives for other insurance and assistance products and services found to
be available from mobile operators on a less frequent basis such as ATM cash theft insurance,
computing assistance, concierge services, document protection insurance and golf insurance.

Across all 255 brands researched, Finaccord identified over 300 distinct product initiatives and
partnerships with over 100 insurance and assistance firms.



What is the rationale?
There are a number of reasons for producing this report. First and foremost, and while the precise
magnitude of the opportunity varies by country, the number of customers of mobile operator brands
typically runs into millions or tens of millions which makes them potentially attractive as affinity
partners from the point of view of insurance and assistance firms; in any given country, few other
organisations possess as many on-going customers as the leading mobile operators.

Moreover, with growth from established revenue streams tending to slow, as the penetration of
mobile subscriptions reaches maturity, mobile operators are looking to new fields of activity, such as
financial services, to generate fresh sources of income. Indeed, rapid advances in payment and
other financial technologies signify that mobile operators are well-positioned to benefit from growth
in mobile payments and banking.

In addition, the continuous relationship of mobile operators with their customers and the fact that
their brands often command a relatively high degree of trust means that there is also potential for
them to act as intermediaries for insurance and assistance products. Not only do these include
forms of insurance that are linked naturally to their core service, such as bill payment, mobile
gadget and mobile phone insurance, but also mainstream types of life and non-life cover.



What methodology has been used?
In order to gather the data and insights contained in this report, Finaccord employed two main
research methodologies as follows: direct contact with the main international offices of the 65 mobile
operator groups in question, typically with press or investor relations departments, to ask them about
their current and future strategies in financial services; direct contact with the national offices and retail
networks of the 255 mobile operator brands in question, to audit the exact insurance and assistance
products offered and the partner organisations with which these have been developed, where not
managed on a captive basis.

The first wave of research represents the main input into the chapter providing a strategic analysis of
the involvement in financial services of the world's 65 leading mobile operator groups while the second
underpins the chapter analysing the activity of the 255 brands on a product-by-product basis. In both
cases, Finaccord sent its eventual findings to be checked by the mobile operator group and brand
representatives with amendments made to the data in line with any feedback received. The 65 mobile
operator groups covered are shown overleaf with a summary of the breakdown of the 255 mobile
operator brands covered by region and group illustrated on the following page.



Which mobile operator groups are
covered within the strategic analysis?

Aircel China Unicom LIME Qtel Telekom Austria
AIS Chungwa Telecom Maxis Communications Reliance Communications Telenor
Algérie Télécom Deutsche Telekom MegaFon Rogers Communication TeliaSonera
América Móvil Digicel MetroPCS Saudi Telecom Company Telkomsel
AT&T Mobility Etisalat Millicom Singtel Telstra
Avea Globacom Mobily SK Telecom True Move
Axiata Group Berhad Hutchison Whampoa MTN Smart Communications Turkcell
Bakrie Telecom Idea Cellular MTS SoftBank Verizon Wireless
Bharti Airtel Indosat NTT DOCOMO Sprint Viettel Mobile
Bouygues Telecom KDDI Oi Tata Teleservices VimpelCom
BSNL KPN Orange Tele2 Vinaphone
China Mobile KT Orascom Telecom Telecom Italia Vivendi
China Telecom LGU+ Polkomtel Telefónica Vodafone

Note – a full list of the 255 mobile operator brands can be seen in the table of contents for this report
which can also be downloaded from Finaccord's website.



How do mobile operator brands covered
break down by region and group?
Group Number of mobile brand
North America, 13 subsidiaries or affiliates
E&S-E Europe, 33 included in the research
Latin America, 27
Vodafone 23
Telefónica 14
France Télécom 12
N&C Europe, 35 Deutsche Telekom 10
América Móvil 8
Hutchison Whampoa 8
Telenor 8
TeliaSonera 7
Asia Pacific, 69 Etisalat 6
Qtel 6
S&W Europe, 28 Bharti Airtel 5
Singapore Telecommunications 5
Telekom Austria 5
VimpelCom 5
Africa & Middle
East, 50 Note - over 300 groups with a controlling or significant equity
stak e in one or more of the 255 mobile brands are covered
Source: PartnerBASE in total.



What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology and some definitions.

2. Group Strategy Analysis: comprising a summary of the strategies in payments, banking,
insurance and assistance of the world's leading 65 mobile telecoms groups by number of
subscribers. This section highlights the main strategic moves made by these groups in each of
mobile payments, mobile banking and insurance / assistance; in doing so, it covers significant joint
ventures created by these groups (e.g. Isis, Jibun Bank, mpass, Wanda) and identifies external
financial, payment and technology organisations that are engaging with these groups at a strategic
level (e.g. Assurant, Gemalto, Google, Western Union).

3. Brand Analysis: analyses and commentary regarding the provision of the various insurance and
assistance products covered by the 255 mobile operator brands researched. This includes both the
unweighted and weighted provision rates for each product; any regional variations in the provision
rates for each product; and the weighted competitor shares of partnerships for each product,
quantifying which providers were found to be playing a leading role in each of these areas. Within
this section, over 100 insurance and assistance firms in total hold partnerships with mobile operator
brands.


What are the key features of the research?
Key features of this research include:

• an overview of strategic initiatives in mobile financial services that are being driven by telecoms
companies at a centralised group level as opposed to the national level;

• coverage of 14 distinct insurance and assistance categories plus other related propositions such
as concierge services, computing assistance and document protection insurance where these were
found to be offered;

• assessment of the degree to which 255 mobile operator brands distribute these types of insurance
and assistance and how the provision rates vary across seven global regions;

• identification of the many insurance providers and assistance firms used in this context by these
mobile operator brands and analysis of the partnerships that offer most potential given each brands'
number of customers;

• availability of an accompanying interactive Partner BASE database that details over 300 distinct
product initiatives and that is fully customisable, searchable and filterable, enabling provision and
distribution patterns to be explored across multiple brands, parent groups and geographical regions.


How can the research be used?
You may be able to use this report and the Partner BASE™ that accompanies it in one or more of
the following ways:

• gain access to a succinct yet thorough summary of the strategic approach to mobile financial
services of 65 of the world's most important mobile telecoms groups – how does your organisation
seem to be positioned relative to its rivals?

• understand the current worldwide picture across all insurance and assistance types from which
mobile operators can realistically generate revenues, and how this varies across seven global
regions;

• appreciate which insurance providers and assistance entities have been successful in establishing
partnerships either at either a group or national level with mobile operators;

• use the interactive Partner BASE database to drill down to the full details – see which insurance
and assistance services are offered by which mobile operator brands in which countries and with
which product providers they co-operate in this context.



How can the interactive Partner BASE™ be used?
Filter by brand Identify partners

Number of
Product Name(s) of Owner(s) of
Country Name of brand subscribers Product type Operating model
offered? partner(s) partner(s)
(million)

Ecuador Claro 8.0 Mobile phone insurance Yes External partner ACE ACE
Ecuador Claro 8.0 Mobile gadget insurance Yes External partner ACE ACE
Ecuador Claro 8.0 Bill payment protection insurance No
Ecuador Claro 8.0 Identity protection insurance / assistance No
Ecuador Claro 8.0 Motor insurance No
Ecuador Claro 8.0 Household insurance No
Ecuador Claro 8.0 Travel insurance / assistance Yes External partner GEA Internacional GEA Internacional
Ecuador Claro 8.0 Accident insurance No
Ecuador Claro 8.0 Health insurance No
Ecuador Claro 8.0 Life insurance No
Ecuador Claro 8.0 Home assistance Yes External partner GEA Internacional GEA Internacional
Ecuador Claro 8.0 Legal assistance Yes External partner GEA Internacional GEA Internacional
Ecuador Claro 8.0 Medical assistance Yes External partner GEA Internacional GEA Internacional
Ecuador Claro 8.0 Road assistance Yes External partner GEA Internacional GEA Internacional
Ecuador Claro 8.0 Miscellaneous insurance / assistance Yes External partner GEA Internacional GEA Internacional

Select country Choose product See operating model


Who can use the research?
1. Mobile telecoms groups: this research will benchmark the activity in insurance and assistance
of your direct competitors and other comparators across major countries around the world with
regional coverage of Africa, Asia Pacific (including Australasia), Europe, the Middle East, Latin
America and North America;

2. Insurance providers and assistance firms: as a consequence of their sheer size, their on-going
relationships with customers and the increasing functionality of the mobile devices used by
those customers, strategic partnerships with mobile operators represent a major opportunity for
financial services institutions;

3. Payment and other financial technology companies: rapid growth in the value and volume of
mobile payments worldwide may bring about opportunities for providers of payment solutions to
combine insurance and assistance elements with their products;

4. Management consultancies: if you are helping an insurance or assistance company with its
strategy in relation to mobile operators or advising a mobile operator how it can make money
from financial services, then this research will explain the global activity of mobile operator
brands and groups in insurance and assistance, in particular, saving time and effort on
researching the subject yourself.


What are some of the key findings?
1. Mobile phone insurance is sold by over a third of the 255 mobile operator brands covered by
Finaccord’s research; initiatives for other insurance and assistance products are growing in number

Mobile phone insurance 36.1%
Mobile gadget insurance 13.3%
Bill payment protection insurance 4.3%
Identity protection insurance / assistance 0.8%
Motor insurance 0.8%
Household insurance 2.0%
Travel insurance / assistance 9.4%
Accident insurance 8.6%
Health insurance 3.1%
Life insurance 6.3%
Home assistance 5.9%
Legal assistance 5.5%
Medical assistance 10.2%
Road assistance 7.5%
Miscellaneous insurance / assistance 6.7%
0% 10% 20% 30% 40% 50%
Source: Finaccord PartnerBASE for Global Mobile Operators



What are some of the key findings? (cont.)
2. Provision rates for mobile phone insurance vary widely by global region and are
highest in Southern and Western Europe but weakest in Africa and the Middle East

E&S-E Europe 15.2%

N&C Europe 60.0%

S&W Europe 71.4%

Africa & Middle East 12.0%

Asia Pacific 20.3%

Latin America 63.0%

North America 69.2%

Total 36.1%

0% 20% 40% 60% 80% 100%




3. By weighted share of partnerships worldwide, Asurion is the leading partner of mobile
operator brands for mobile gadget insurance, followed by Liberty Mutual and Zurich
Asurion,
11.5%

Liberty
Mutual,
other, 36.5% 10.3%

Zurich,
10.1%

Telefónica ACE, 8.1%
Insurance,
4.4% Assurant,
Mega
Lifestyle 7.9%
Corretora de
Services
Group, 4.4% Seguros,
6.8%



4. Key findings from the executive summary include:

• discounting a few captive and joint venture underwriters of insurance and assistance, Finaccord
identified very few partnerships with insurance or assistance companies that could be described as
strategic rather than local brand-specific initiatives;

• in Europe, various subsidiaries of Telefónica and Vodafone make use of these groups' captive
underwriters although, in general, mobile phone insurance schemes have been established with
external partners;

• the most widely provided form of assistance is medical assistance (available from 10.2% of
brands), followed by road assistance (7.5%), home assistance (5.9%) and legal assistance (5.5%),
and provision rates are especially high in Latin America where many customers are able to
purchase an integrated assistance packaged from their mobile brand;

• looking ahead, Finaccord considers that it is likely that leading mobile telecoms groups will
increasingly seek to establish more strategically oriented partnerships with providers of insurance
and assistance.



What is the cost and format?
Global Mobile Operators: Strategies in Insurance and Assistance is available as a standard Adobe
Acrobat PDF document and / or hard copy. The interactive Partner BASE™ that accompanies it at no
further charge is in Microsoft Excel format. Costs for this research set, sister studies on the same subject
and other related titles available at the time of publication are as follows:

REPORT PRICE *
Global Mobile Operators: Strategies in Insurance and Assistance GBP 1,995
Global Mobile Operators: Strategies in Payments and Banking GBP 1,995
Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance GBP 2,995

Global Automotive Clubs: Affinity Marketing Opportunities for Financial Services Institutions and Other Organisations GBP 1,995
Global Coalition Loyalty Programs: Affinity Marketing Opportunities for Financial Services Institutions and Other Orgs. GBP 1,995
Global Retailer Cards: Co-Branded, Loyalty and Private Label Programs GBP 3,995
Global Retailer Insurance: Affinity Schemes in Supermarkets and Other Stores GBP 2,495

Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK GBP 1,995

For UK-based clients, VAT at the prevailing rate will be added to the basic price.
Costs quoted are for a single site user licence only.
For a corporate user licence, please see the next slide for further details.
Invoices can be paid in EUR, at the prevailing exchange rate, if preferred.


How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available at
www.finaccord.com/order_global_apmr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please choose one of the following options:
1. One office, one country: no supplement over and above basic cost of reports ordered
2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered
3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.


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