Leveraging Digital to Distribute Insurance: Exploring online sales opportunities for insurers

1. Leveraging Digital in Pensions
Distribution
UĞUR ÇAĞLAR – BNP PARIBAS CARDIF TR
CMO & HEAD OF DIRECT DISTRIBUTION
APRIL 10, 2014

2. BNP Paribas Cardif – Brief Intro
 Founded 40 years ago
 The insurance subsidiary of BNP Paribas
 A global specialist in personal and property insurance, with a presence in 37 countries
across Europe, Asia and Latin America.
 B2B2C business model: savings and insurance products and services distributed through a
network of partners, including banks, credit companies, the insurance units of automobile
manufacturers, telecoms operators, insurance brokers, retail chains, etc.
 Figures in brief 2012:
 25,3 billion € Gross Written Premiums
 2,1 billion € Net Banking Income
 1,2 billion € Pre-tax net profit
 178 billion € Assets under management
 BNP Paribas Cardif is in Turkey since 2007… 100 mn € premiums + 150K pension customers

3. BNP Paribas Cardif: A diversified distribution....
3
Savings
Protection
Retail Banking Channel
The Retail Banking Channel oversees distribution of products via BNP
Paribas retail banking and Private Banking in France, BNL in Italy,
BNP Paribas Fortis in Belgium, Luxemburg and Polan, TEB in Turkey
and UkrSibbank in Ukrainne.
Partnership Channel
BNP Paribas Cardif works with leading distribution partners around
the world, including banks, consumer credit firms, financing
subsidiaries of autobile manufacturers and retail chains.
Digital & Brokers Channel
This channel consolidates the digital expertise of BNP Paribas Cardif
– an essential component in its partners’ distribution strategies – as
well as business with insurance brokers. This is a strategic segment in
Belgium, the Netherlands and the United Kingdom.

4. 4
Cardif Turkey with Numbers:
*420 number of employees
*TEB is exclusive partner in pension and life branches
*11 partners in different sectors
* 6 partners in banking sector
* 5 partners in auto sector
*Innovative products focus on different risk groups
• Cardif Turkey established in 2007.
• Dominant & market maker in Turkish involuntary unemployment market.
• Thanks to 11 partners, Cardif distributes its products through 5.100 branches and 500 auto dealers...
 Acquired in 2010
 BNP Paribas Cardif has approx.148 k contracts as of December
2013
 Exclusive partner with TEB in pension product
Cardif Insurance Cardif Life Insurance Cardif Pension
BNP Paribas Cardif Turkey is operating in Turkey with 3 separate legal entities...

5. Why digital + insurance ?
 The generated business for insurance online is expected to double in 3
year-time.
 New rules are defined for the insurance industry while key players struggle
to adapt.
 Clear elements about customer motivations to buy insurance online, and
beyond buying, about the way to handle insurance online.

6. Online becoming a significant channel
Split of business generated by each channel
5%
To
12%
Austria, Belgium, Brazil, Colombia, France, Germany, Italy,
Netherlands, Nordics, South Africa, Spain, Switzerland, United-
Kingdom
Online
Source: Accenture
5%
To
12%
6%
To
12%

7. The road is bumpy…
Source: E&Y

8. Online; insurers are benchmarked…
 Amazon
 iTunes Store
 Facebook

9. Despite all difficulties…
 Channels must evolve
as the customer
behavior changes…

10. Our experience…
Choose a
key
product
Leverage
digital
assets
Review
processes
Promote Measure

11. Why pensions?
2.3
2.6
3.1
4.1
4.4
2010 2011 2012 2013 2014 YTD
Number of Participants – in Millions
Strong
government
incentive starts

12. interest online increasing…

13. Enablers are there…
 Customers online and purchasing
 Focus groups reveal customers willing to purchase pensions online
 Regulation allowing distance sales (incl. digital) announced
 Channel conflict assessed (incl. agreements)

14. Commercial drivers are there…
 Currently main distribution done via
 Financial advisors (fixed costs) + recurring commissions to distributor
 Agents (commissions)
 Decrease of fees making break even of a policy around 7 to 8 years mainly
due to acquisition costs
 A way to decrease acquisition costs?

15. Digital assets are not limited to a
website
 Online branch + Online branch of partner banks
 Salesforce digital tools
 Social media
 E-business site
 E-mail marketing
 Others...

16. myCardif
 Online branch for
Pension Custsomers
 Positioned on our
website
 Increase contributions,
change of funds,
collect premiums

17. Leveraging online branch of partner
bank
 Leveraging our
partner’s asset
 Great tool for
lead collection as
well as
transacting with
current customers
 Much higher
customer base

18. Leveraging online branch of partner
bank
 exit surveys
 Welcome screens
 Bundle offers

19. Promote the business, across all
platforms
 Social media
 11 million views
 2 K highly qualitifed leads
 Cost…

20. Promote the business, across all
platforms
Apply NOW

21. Unique visitors per year exceed
customer #

22. Content to attract non-customers
Live Chat
Calculation tools

23. Running processess need calibration to
fit digital needs
 Response times to the customer should be faster
 Taking into account additional requirements from regulatory perspective
 More participants involved such as specialized post services

24. Measuring = Business Case
x ConversionCost Per Visitor x Acquisition
c. 0,25 TL c.0,75% c.10%
Cost per Acquisition c250 TL
Current
Target c. 0,25 TL c. 3 % c.15%
Cost per Acquisition c55 TL
Cost per lead may increase
as competition starts
Higher conversion rate thanks to
improved funnel (upside up to
5%)
Conversion rate higher
thanks to online sales
(upside up to 20%)
 Vis-a-vis
traditional
acquisition
cost of 200
TL

25. Conversion costs per keyword
available and easily accessible

26. Beyond google search...
Social
Media
Affiliate
Marketing
YoutubeBanners+++
E-mail
marketing
 It is a numbers
game!

27. Beyond desktop...

28. Conclusion
 Digital is transforming all businesses… Because it is transforming the
behaviour of the very customers we are targeting
 Need to create a «pull effect» economically, to generate value
 Sales in digital is all about analytics, hence numbers game
 Digital is moving on to connected devices, where it will be even more FUN!