Transcript Mit Rechtsschutz in die Zukunft

Legal protection insurance – The German LPI model
Rainer Tögel
Warsaw, 3th June 2014
1
Agenda
D.A.S. - Who we are
German market key figures
Product structure
German legal framework
German LPI business model
Customer satisfaction
2
D.A.S. – Who we are
D.A.S. 100 % owned by ERGO (Primary Insurance of Munich
Re), ERGO 100 % owned by Munich Re
Structure as of 2014
MR / Munich
100%
ERGO / Duesseldorf
100 %
000
100 %
D.A.S. Germany / Munich
100 %
100 %
VIWIS
GmbH
3
D.A.S. – Who we are
D.A.S. - domestic and international market leader in the field
of legal protection insurance
• 16 countries in Europe
• South Korea
• Canada
Approx. 12 million
customers
worldwide
Worldwide market share of 16 %
~ 60 % of D.A.S. GWP is outside Germany (CAGR 1990 – 2012: 10 %)
4
German market key figures
Germany - profitable mature LPI market (~ 42 % household
penetration)
Market volume in €m
Number of LPI insurer
Premiums written – for own account, gross, LOCAL GAAP
45
23 26
50 49
46 46 49 49
1
3,158
31 33
1976 1980 1985 1990 1995 2005 2008 2009 2010 2011 2012
Competitors
3,223
2008
2009
2010
3,329
3,343
2011
2012
%
Market combined ratio in %1
1
1
2
3
4
5
6
7
8
9
10
2007
3,204
3,245
D.A.S.
D.A.S.
Allianz
Roland
ARAG
Örag
Advocard
HUK
Deurag
LVM
R+V
For own account, gross, LOCAL GAAP
101.3
99.1
97.4
98.7
99.3
98.0 96.9
2009
2010
2011 2012
94.2
2005
2006
2007
2008
Source: GDV, Annual Reports, DI
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German market key figures
42 % of the worldwide LPI market is in Germany
World market split according to countries 2011
World market split according to countries 2011
World market split according to competitors 2011
€m
€m
Belgium
389
Germany
3,329
Austria
444
Other
~4,755
(60.2%)
D.A.S.
1,073 (14.6%)
UK
UK
826
826
Netherlands
800
ARAG
723
(9.2%)
TOTAL
~ €7.9 bn
TOTAL
TOTAL
~ €7.9
~ €7.9
bn bn
Allianz
~636
(8.1%)
Axa
~350
(4.4%)
France
910
Note: figures incl. add-on business, on local GAAP
Other
1,187
Generali
~347 (~4.4%)
Source: European Association of Insurers (CEA), German Association of
Insurers (GDV), Annual Reports, D.A.S. International research (DI)
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Product structure
Broad range of LPI products
Lines of LP-Business
Policies
Motor-LP
Stand alone Policies
(“Family”) LP for private and occupational disputes
LP as tenant / owner of real
estate
Individuals Companies
LP as landlord of real estate
Commercial - LP
Group Policies
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German legal framework
LPI market in Germany highly regulated
Highly regulated market
unregulated free market
Germany
Monopoly
Legal services only provided
by independant lawyers (advocats)
LPI is allowed to provide
legal services with inhouse
resources (company lawyers)
Germany
Free choice
Provider/lawyers chosen
by LPI´s
Free choice of lawyer
by customers
Germany
Fees
Fixed fees by law
Freely negotiable
fees
8
German LPI business model
The change of business model
LPI market strategy until 2005
LPI as cost reimbursement
company
LPI provides legal services
with inhouse resources/
LPI-chosen lawyers
Effects:
- low customer satisfaction
- customer wants more than cost reimbursement
- customer wants access to law
- customer wants solutions for every legal issue
- customer wants preventive legal advice
Decrease in premiums !
LPI market strategy
LPI as cost reimbursement
company
LPI provides legal services
with inhouse resources/
LPI-chosen lawyers
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German LPI business model
Today´s business model – Squaring the circle (e.g. @ D.A.S.)
Providing
lawyers
Legal advice over
the phone
Mediation
Document Check
Customer
Web check
broad range of legal services
Lawyer (advocat)
D.A.S. App
10
Customer satisfaction
The majority of customers judge the service performance of
D.A.S. extremely positiv
Elements of legal services
Question: How pleased are you generally with the handling
of your legal matter/LPI case by D.A.S.?
Recommendation of lawyers
Legal advice over the phone
Mediation
Debt collection
Case management
Legal information
Legal support
Final consultation
Basis: 200 customers (138 telephone legal advice, 62 mediation), values in percentage
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Legal protection insurance – The German LPI model
Rainer Tögel
Warsaw, 3th June 2014
12