Transcript Ageas Strategy

The future of
distribution strategies
Bart De Smet, CEO Ageas
Insurance Strategy Europe
Brussels, 22 March 2012
Agenda
1. Insurance distribution in Europe
2. Distribution at Ageas group
3. Ageas Belgium
4. Ageas UK
5. Ageas Malaysia
6. Conclusions
Insurance Strategy Europe 2012 | 22 March 2012
1
 European insurers use a wide range of methods to sell insurance products.
 The importance of each distribution channel varies per country, caused by different
factors
 There is also a clear difference between Life and Non-life insurance
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In Europe, the bancassurance channel is dominant in life …
100%
90%
80%
Other
70%
Bancassurance
60%
Brokers
50%
Agents
40%
Direct sales
30%
20%
UK
Turkey
Slovakia
Slovania
Portugal
Poland
Netherlands
Malta
Luxembourg
Lithuania
Italy
Ireland
Croatia
France
Spain
Germany
Bulgaria
Belgium
Austria
0%
Romania
10%
Source: CEA statistics
indicates Ageas presence
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… while brokers and agents are dominating non-life
100%
90%
80%
Other
70%
Bancassurance
60%
Brokers
50%
Agents
40%
Direct sales
30%
20%
Source: CEA statistics
Insurance Strategy Europe 2012 | 22 March 2012
UK
Turkey
Slovakia
Slovania
Portugal
Poland
Netherlands
Malta
Luxembourg
Lithuania
Italy
Ireland
Croatia
France
Spain
Germany
Bulgaria
Belgium
Austria
0%
Romania
10%
indicates Ageas presence
4
Insurance Strategy Europe 2012 | 22 March 2012
Internet
Low
Internet
Affinity
Broker
Broker
Broker
Bank
Agents
Affinity
Agents
Bank
Agents
Bank
Bank
Bank
Affinity
Affinity
Bank
Affinity
Agents
Agents
Affinity
Insurer controls branding /
message
Broker
Internet
Brand importance
Internet
Speed
Internet
Price sensitivity
Internet
Product complexity
Agents
Service / advice driven
Broker
High
Broker
Each channel has specific strengths
5
Control is shifting to the customer
Traditionally, the insurer has been in control of the value chain….
Customer
Intermediary
Insurer
Reinsurer
… where insurers dictated everything and the customer is not in the driving seat
…and now the value chain is reversing to leave the customer in control
Customer
Intermediary
Insurer
Reinsurer
Customers are now more informed and demanding so that insurers and
intermediaries have to be more responsive to the needs and norms demanded
by the customer
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Drivers of change in the distribution mix
 Decreasing fiscal stimuli and increased transparency
 Banks’ focus on liquidity
 Internet and social media low-cost alternatives for standard products
 Success of aggregators in UK could spread to other markets
 Regulation and technology cause a consolidation among brokers
 Opportunities for affinities with strong brands
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A multi-channel strategy is needed to service today’s customer
 Customer loyalty is low
 Customers are better informed
 Customers are more demanding
 Customers use a greater variety of channels for different purposes
 Technology supports changing attitude
 ‘Hybrid’ customers
Insurers must deploy a multichannel strategy to serve their customers at
the time, at the place and through the channel that the customers prefers
Source: Accenture Multi-channel Survey 2010
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Agenda
1. Insurance distribution in Europe
2. Distribution at Ageas group
3. Ageas Belgium
4. Ageas UK
5. Ageas Malaysia
6. Conclusions
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Ageas is active in Europe and Asia, where it co-operates with many
different distribution partners
Belgium
Belgium
United Kingdom
UK
Luxembourg
China
France
Malaysia
Turkey
Portugal
Italy
Italy
Malaysia
India
Thailand
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A broad based distribution capacity at group level …
Other
13%
Affinity
1%
Agents
12%
Brokers
19%
Bancassurance
55%
As % of GWP 2010, Including non-consolidated joint ventures at 100%
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… but also within the different segments
Belgium
UK
(20%) Employee Benefits
(8%) Partners
(8%) Agents
(34%)
Brokers
(32%)
Broker
(48%) Bank
(50%) Direct
Continental Europe
Asia


Portugal: bank (Millenium BCP)

Malaysia: bank (Maybank), agents, brokers,
affinities

Luxembourg: bank (BGL), brokers,
employee benefits

Thailand: bank (Kasikornbank), agents,
brokers, affinities, direct marketing

France: brokers


China: bank (several Chinese banks),
agents, brokers
Turkey: bank (Akbank), agents, brokers

Hong Kong: agents, IFA’s

India: bank (IDBI and Federal Bank), agents
Italy: bank (Ubibanca)
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Agenda
1. Insurance distribution in Europe
2. Distribution at Ageas group
3. Ageas Belgium
4. Ageas UK
5. Ageas Malaysia
6. Conclusions
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Integrated multi-channel insurance company
 Bancassurance: 1,000 branches of BNP Paribas Fortis Bank and Belgian Post bank
branches
 Assurfinance: 316 Fintro agents
 Brokers: 3000 independent brokers
 Pensions: Consultants, International Networks and B2B
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Broad distribution reach
Ageas in
Belgium
12%
Rest of market
17%
20%
25%
6%
7%
Life
13%
65%
35%
6%
23%
16%
Non-Life
6%
56%
13%
72%
5%
3%
Broker
10%
21%
Assurfinance
31%
Total
37%
9%
Agent
5%
54%
24%
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Bancassurance
9%
Direct
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Multi-Channel Strategy is reflected in the organisation model
 Channel specific organisation with cross sharing of product development
skills and support entities
Bank
Channel
Life
Non-Life
Broker
Channel
Life
Non-Life
Employee
Benefits
& Health Care
Channel
Health
Care
Group
Life
Life product development
Non-life product development
Individual Health Care product development
SUPPORT
Business Operating Office (IT, Facility Management, Financial Relations, Central
Purchase Office, BOO Support), CFO, Asset Management, HR, Risk & Compliance,
Audit, Performance Management
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Product Innovation – Belgium
The award-winning* Modulis VIP Model synergy
Banking clients
BNP Paribas
Fortis
400,000
Insurance relationships
AG Insurance
through Broker
130,000
Other Insurers
through Broker
Other
Banks
Other
Channels
800,000
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800,000
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Agenda
1. Insurance distribution in Europe
2. Distribution at Ageas group
3. Ageas Belgium
4. Ageas UK
5. Ageas Malaysia
6. Conclusions
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General Insurance distribution in the UK
Personal and Commercial lines have very different distribution mixes
General Insurance
58%
Personal Lines
22%
40%
31%
Commercial Lines
12%
10%
20%
Brokers
30%
Direct
40%
8%
9%
9% 1%2%9%
80%
0%
7% 6% 7%
50%
60%
Banks / Building Societies
70%
80%
Partnerships
90%
100%
Other
Source: ABI
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Ageas UK distribution profile
2000
1800
1600
GWP £m
1400
1200
1000
800
600
400
200
0
2004
2005
2006
Brokers
Owned
2007
Affinities
2008
IFAs
2009
MGAs
2010
2011
Tesco
Source: Ageas UK
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Ageas has invested heavily in distribution and partnerships
 Access to our products and services through whatever channel
 Investment in distribution
 Investment in partnerships
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Agenda
1. Insurance distribution in Europe
2. Distribution at Ageas group
3. Ageas Belgium
4. Ageas UK
5. Ageas Malaysia
6. Conclusions
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Etiqa
 Etiqa launched in November 2007
 Owned by Maybank (69.05%) and Ageas (30.95%)
 All types of Life and General insurance and Takaful plans
 Multi-distribution: Bancassurance, Agents, Brokers and Direct Distribution
 One of the pioneers for direct sales through internet: Online Motor Takaful
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Etiqa – multi product, multi-distribution
Channel Mix 2011
Enterprise
22%
Agents
31%
Alternative
2%
Branches
6%
Bancassurance
39%
Product Mix 2011
General
Takaful
16%
General
conventional
28%
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Life
Conventional
25%
Family
Takaful
31%
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Complete Product Offerings at all Life Stages
BANCASSURANCE
CALL
CENTRE
AGENCY
Product
diversification
BRANCHES
ALTERNATIVE
DISTRIBUTIONS
ENTERPRISE – Employees' Benefits
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Etiqa is a frontrunner in using new media
MotorTakaful.com
 Newly launched campaign, themed “Celebrating Malaysian Drivers”, is a fun and
casual approach in engaging the customers
 10% off over and above normal No Claims Discount when purchasing online
 Access to free, 24 hour Auto Assist program
 Can check motor claim status online
Etiqa Fan Page
 The award winning, Etiqa Fan Page on Facebook is informative with the latest
news and update on the events and promotions
 Alternative channel for the customers to get in touch with Etiqa and brings Etiqa
closer to people’s heart
Etiqa Oneline
 Fast, easy and simple with just one phone
 Open weekdays and Saturdays
 Access to information regarding Etiqa's products and services such as making
changes to their policies or certificates
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Agenda
1. Insurance distribution in Europe
2. Distribution at Ageas group
3. Ageas Belgium
4. Ageas UK
5. Ageas Malaysia
6. Conclusions
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Conclusions
 The distribution landscape is changing due to technologic, regulatory, demographic and
economic changes
 Customers become more demanding and less loyal
 Insurers must deploy a multichannel strategy to service their customers at the time, at
the place and through channel that the customers chooses
 Over time, these channels will be increasingly integrated to service the volatile, informed
customer of the future
 At Ageas, we are actively working on a multi-distribution strategy, tailored to the markets
we are active in
 This requires time, resources and capital, but it is necessary to survive in these testing
times
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