Distribution Channels for Life Insurance: A Global Perspective
Bancassurance
Models
Distribution Channels
for Life
Insurance:
A Global
Perspective
Around
the World
2nd Life Insurance Forum
Amsterdam, April 9th – 10th 2014
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
Agenda
 Bancassurance as a major distribution channel for life
insurance
 Consumer research: distribution of protection-related life
insurance in Europe
 The global market for creditor / creditor life insurance
 Summary
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Distribution Channels for Life Insurance: A Global Perspective
Factors that the shape countryspecific distribution landscapes
1. Regulations
Mediation laws
Product regulation
2. Market characteristics
Maturity of the market
Consumer behaviour
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Distribution Channels for Life Insurance: A Global Perspective
The importance of the bancassurance channel
Estimated distribution share of bancassurance in total life insurance, 2012 / 2013
100%
80%
60%
40%
20%
0%
Turkey
Brazil
Spain
France S. Korea Russia
Poland Germany
UK
Chile
Japan
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
The importance of the bancassurance channel
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 for life insurance, 2013
Captive
underwriter,
37.6%
None, 39.2%
Captive
underwriter + JV
underwriter,
8.8%
JV underwriter,
14.4%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
5
Distribution Channels for Life Insurance: A Global Perspective
The importance of the bancassurance channel
Ranking of banking groups by value of premiums of captive and joint venture underwriters, 2012
Rank Group
1
2
3
4
5
6
7
8
9
10
Premiums (USD billion)
Crédit Agricole
ING Group
BNP Paribas
Bradesco
Crédit Mutuel
Lloyds Banking Group
Société Générale
HSBC
NongHyup Bank
Intesa Sanpaolo
29.00
26.07
25.47
21.13
15.17
13.13
13.09
13.04
9.11
7.28
Total of above
172.49
Other retail banking
groups in world's top 125
164.52
Grand total
337.01
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
Consumer research: distribution of
protection-related life insurance in Europe
 Survey of over 6,000 consumers in France, Germany, Italy,
Poland, Spain and the UK in 2012
Five types of protection-related life insurance: risk life, critical
illness, long-term income protection, short-term income
protection and funeral expenses insurance
 Note that investment-related life insurance, retirement
savings and creditor insurance not in scope here, hence weaker
share of banks as distributors relative to total market
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
Consumer research: distribution channels
used for protection-related life insurance
Insurance company / agent
Insurance aggregator or comparison site
Financial adviser or broker
Bank or similar institution
Supermarket or other retailer
Other
100%
80%
60%
40%
20%
0%
France
Germany
Italy
Poland
Spain
UK
Average
Source: Finaccord Life Protection Metrics reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
Consumer research: distribution interfaces
used for protection-related life insurance (1)
Face- to - face
Online
Inbound telephone
Outbound telephone
Post
t1
100%
80%
60%
40%
20%
0%
France
Germany
Italy
Poland
Spain
UK
Average
Source: Finaccord Life Protection Metrics reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
9
Distribution Channels for Life Insurance: A Global Perspective
Consumer research: distribution interfaces
used for protection-related life insurance (2)
Online (laptop or desktop)
Online (tablet)
Online (mobile phone)
100%
80%
60%
40%
20%
0%
France
Germany
Italy
Poland
Spain
UK
Average
Source: Finaccord Life Protection Metrics reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
The global market for creditor life insurance
Size of the creditor life insurance market in Europe and Latin America, 2012 GWP estimate
USD billion
40
37.73
30
20
10
4.78
0
Europe
Latin America
Source: Finaccord Global Creditor Insurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
The global market for creditor life insurance
Creditor life insurance as percentage of total creditor insurance market, 2012 estimate
100%
79.0%
80%
73.8%
60%
40%
20%
0%
Europe
Latin America
Source: Finaccord Global Creditor Insurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
The global market for creditor life insurance
Creditor insurance market size compound annual growth rates, 2008 to 2012
4.1%
Creditor life - Europe
Creditor non-life - Europe
-0.4%
Creditor life - Latin America
18.8%
Creditor non-life - Latin America
-10%
26.3%
0%
10%
20%
30%
Source: Finaccord Global Creditor Insurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
The global market for creditor life insurance
Creditor life insurance GWP as % of total protection-related life insurance GWP, 2012 / 2013
100%
95.5%
80%
74.5%
66.7%
56.4%
60%
47.0%
40%
34.0%
21.5%
20%
17.9%
0%
Russia
Poland
Portugal Belgium
Spain
Brazil
France
Japan
Source: Finaccord Global Creditor Insurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
Summary
 The importance of distribution channels for life insurance
varies from country to country, although banks have prominent
position in many market
Creditor life insurance is one of the key lines to develop a well
functioning life insurance markets in developing countries
For protection-related life insurance products direct sales
from insurance companies are still the most important channel
with face-to-face being the most used interface
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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Distribution Channels for Life Insurance: A Global Perspective
Any questions?
Sources and related Finaccord publications:
Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups
Creditor Insurance in Europe
Creditor Insurance in Latin America
Life Bancassurance in the Asia-Pacific Region: Investment-Related Life Insurance and Retirement Savings
Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance
Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings
Life Bancassurance in Europe: Protection-Related Life Insurance
Life Bancassurance in Latin America: Protection-Related Life Insurance
Bancassurance country reports (covering 30+ different countries in the Asia-Pacific region, Europe and Latin America)
Creditor Metrics: Consumer Approaches to Payment Protection Insurance in Europe
Life Protection Metrics: Consumer Approaches to Protection-Related Life Insurance in Europe
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: [email protected]
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