Finaccord Uniglobal presentation, 22-05-14

© 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
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
Defining the distribution universe for
insurance products: traditional channels
Direct sales
Insurance agents
Insurance brokers / financial advisers

4
insurance products: non-traditional channels
Financial partners
Commercial partners
Not-for-profit affinity partners
Sector-specific partners
Aggregators
Worksite

5
insurance products: financial partners
Financial partners
Commercial partners
Aggregators
Worksite
Banks and similar institutions
Credit unions
Specialised lenders
Other insurance companies

6
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
Aggregators
Worksite

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
Aggregators
Worksite

8
insurance products: sector-specific partners
Airlines
Automotive clubs
Car dealers
Car manufacturers
Estate agents
Pet owners' clubs
Travel companies
Vets
Financial partners
Commercial partners
Aggregators
Worksite

9
insurance products: channels and interfaces
Direct sales
Insurance agents
Insurance brokers / financial advisers
Financial partners
Commercial 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
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
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
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
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
* Other policies include creditor,
GAP and niche (e.g. minor
damage) insurance plus road
assistance and prepaid service
contracts

14
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
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
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
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
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
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
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
% 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
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
Any questions?

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

Finaccord Uniglobal presentation, 22-05-14

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Finaccord Uniglobal presentation, 22-05-14