Transcript Eurapco – European Alliance Partners Company

Eurapco – European Alliance Partners Company
Avoiding Conflicts and Dissatisfaction
between Multichannel and Sales
Jacob Flemming
17.09.2009 / Vienna
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Index
 Eurapco
 Multichannel concept & Business value proposition
 In each Market / Partner
•
•
•
Best Practice: How to avoid conflicts?
Understanding management requirements in every channel
Increasing productivity without spoiling remuneration
systems
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Partners
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Partners
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TOTAL Business 2008
(million Euros)
19306
TOTAL 43’361
12070
4039
2929
1808
Covéa
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Eureko
Gothaer
LF
Swiss Mobiliar
2355
854
Caser
Tapiola
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Non life Business 2008
Premium income (million Euros)
15075
TOTAL 31’412
8923
2397
Covéa
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Eureko
Gothaer
1764
LF
1341
Swiss Mobiliar
1263
Caser
649
Tapiola
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Life Business 2008
Premium income (million Euros) and market positioning
4231
TOTAL 11’949
3147
1642
1165
1092
467
205
Covéa
13
Eureko
n.a.
LF
4
Gothaer
12
Swiss
Mobiliar
9
Caser
Tapiola
5
4
Note that the figures mentioned are not directly comparable between Partners as their accounting rules and requirements differ.
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Multichannel concept
Clients
Individual
Factory
Channel
Agents
Brokers
Banks
Groups
Corporate
agreements
UW
Policy adm.
Post sales
Accounting
Investments
IT
Direct
Corporations
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Business Value proposition and model
Traditional Ag & Bks
Bancassurance
Direct
Marketing
Case oriented
Segment oriented
Cherry pickers
Product
Wide product range
Permanent adaptation to individual
consumers needs
Few – simple and wide products
linked or not to financial products
Easy to modify
Few, simple & wide
Easiest modifiable product
IT
Very complex processes
Processes must be adapted to the
Bank
Fixed – streamlined
Claims
Involvement desire
No involvement
No involvement
Training
In depth - wide
Basic
In depth - standar
Controls &
Mgm. Info.
High & costly controls
- UW, Claims & Financial
Mgm. Info. Vital & volatile seldom
shared
Easy, transparent & shared control
-UW, Claims & Financial
Mgm. Info. Vital, shared and more
meaningful
Easy, permanent control
- UW, Claims & Financial
Mgm. Info to aloud permanent
fine tuning
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Business Value proposition and model
Traditional Ag & Bks
Bancassurance
Direct
Service
levels
Segmented Agents – intranets
Brokers – Access to UW / Claims
Segment oriented
Cherry pickers
Product
Wide product range
Permanent adaptation to individual consumers
needs
Few – simple and wide
products linked or not to
financial products
Easy to modify
Few, simple & wide
Easiest modifiable product
IT
Very complex processes
Processes must be adapted
to the Bank
Fixed – streamlined
Claims
Involvement desire
No involvement
No involvement
Training
In depth - wide
Basic
In depth - standard
Controls &
Mgm. Info.
High & costly controls
- UW, Claims & Financial
Mgm. Info. Vital & volatile seldom shared
Easy, transparent & shared
control
-UW, Claims & Financial
Mgm. Info. Vital, shared and
more meaningful
Easy, permanent control
- UW, Claims & Financial
Mgm. Info to aloud permanent fine
tuning
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Preliminary considerations
 Channels in different Markets can have different weight and development
 Multichannel to diversify from main channel
•
Protect main channel or not ?
 Use the strength of the brand or create a new brand ?
 Price and Service Levels by channels ( personal lines )
•
•
Not subsidize
Different loss ratios by channels
 Certain channels are still marginal but we think have high growth potential
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Multichannel = Channels conflicts ?
ALLIANZ TO CLOSE ALLIANZ 24
 Allianz is to close its direct internet operation Allianz 24, moving the system to the
Allianz web site, reports Insurance Day.
 Allianz was said to be planning a new presence in the discount insurance
market via another yet-to-be-launched online platform that will not use the
Allianz brand name. The new platform will be pan-European. BRAND ISSUE
 Allianz launched Allianz 24 in 2005, attempting to sell traditional policies via
agents MAIN CHANNEL and cut-price policies via the internet. Allianz conceded
this week that it was a “classic case of the collision between two different sales
channels”.
 Allianz 24 caused resentment amongst the insurer’s 10,000 agents because
customers could buy the same policies for up to 30% less but then, having bought
the policies online, demanded the same after-sales service from agents. PRICE
AND SERVICE
 Allianz 24 insured only about 300,000 vehicles online last year, out of nearly 9m
vehicles in total. MARGINAL IMPACT
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Covéa
France – Covéa (2008)
Channel distribution
MARKET

French Market shrinks by 6% in 2008
Total Business
( Life -10.3%, Non life +4% )

Brokers
8%
Life: 62% Bancassurance - Non life: 38%
Direct, 35% Tied Agents
COVÉA

Stable GWP in 2008

6% Market Share. Rank #8 overall, #1 in
Motor, #1 in Property & Liability
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Direct
49%
Agents
43%
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Covéa
Distribution Strategies

Covéa : Group Partnership structure. Composed of 3 independent Insurance
Companies:
– MAAF: Direct insurer, 574 points of sales
– MMA: Tied agents, 1971 points of sales + Broker Business (Covéa Risks)
– GMF: Direct insurer, 400 points of sales
Besides:
– Covéa Fleet: Fleet business through Maaf, MMA, GMF and brokers
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Covéa
Multichannel strategy
 Covéa as such does not really have a strategy on this topic: these strategies
are up to each Company.
 Therefore, the 3 brands are competing against each other at a sales level
 MAAF: business done by Maaf employees in Maaf shops; MMA: business is
done by tied agents in MMA Agencies; GMF: business is done by GMF
employees in GMF shops
 MAAF, MMA and GMF propose online insurance: brand, prices are the same
as in the shops. No internal competition, unlike some other companies
(Groupama and their low-cost amaguiz.com)
 Nexx: a MAAF daughter company (Online / Phone). Used for White Labelling
and to have a different pricing policy without competing against the main
distribution channel.
 MMA/Covéa Risks: identical U/W guidelines and Terms & Conditions to avoid
internal competition
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EUREKO
Description Sales Channel
Life & Non-Life 2006
Brokers
12%
Banc
assurance
24%
Direct
64%
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Source: Company Data
2007/2008 figures not available
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EUREKO
Brand
Distribution channel
Direct
Agents
Brokers
Characteristics
Bank
• Leading multi-channel insurer in The Netherlands
• Innovative service propositions
• Strong portfolio of brands
• Leading insurance company in Greece
• Superior agent management; best recognized brand
Distribution
Strengths
• Leading broker channel co-operation in Ireland
• Highly successful and well respected multi-specialist
financial services company.
• Leading insurance company in Poland
• Strong and loyal distribution network
• Very strong brand (99% brand awareness)
• Medium sized Life and Non-Life insurer
•Niche market player,single distribution
•Strong bancassurance as result of BCP relation
•Developing operations in Romania, Bulgaria and
Cyprus
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EUREKO
The Netherlands - ACHMEA
Product channels
Property &
Casualty
•
•
•
Occupational
Health
Health
Pensions
Direct
Distribution channels
Banking
Broker
When there is a channel conflict product and price are the same, but the marketing
strategy will be different.
We strive for market leadership in all segment and for a leading position in all
distribution channels, direct, broker, bank distribution (currently #1 in direct and
bank distribution and # 5 in broker distribution)
Key to our Dutch strategy are operational excellence and cost leadership
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GOTHAER
Channel distribution
GERMANY – GOTHAER / Description
MARKET
 1,5% German market growth in 2.008
( Life 1,8% - Non life 1% )
 Life 75% Agents and Brokers
 Non life 89% ( Agents 45% Brokers
44% )
GOTHAER
 2,3% Growth ( Life 3% - Non life 1,7% )
 Market quota 2,2% number 12 in the
ranking GWP
Bancassur
ance
10%
Brokers
58%
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Life
Bancassur
ance
0.3%
Brokers
Health
61.5%
Agents
38.2%
Affinities
2%
Non Life
Brokers
48%
Agents
32%
Agents
50%
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GOTHAER
Multichannel strategy
 Main channel: traditional ones (Agents and Brokers)
 Complementary channels: companies Juanitos (white label) and Asstel
(direct business)
 Different branding by channels besides traditional which are under the original
Company/Brand.
 Price differs from one channel to the others, according to different cost
structures
 Service levels the same in all channels
 Economic impact:
 Volume very small, just start up companies
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Länsförsäkringar
Market shares non-life per
regional insurance company
31,4
75% of the Swedish population
43,0
lives outside Stockholm
52,2
41,6
31,3
40,0
57,9
36,8
45,9
16,7
38,9
41,5
38,5
55,6
27,7
35,8
50,9
50,2
44,5
49,1
30,1
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43,7
36,7
41,5
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Länsförsäkringar
Distribution of Life, Non-Life and Bank products
Commercial Lines
Salaried staff
Captive agents
Brokers
Increased sales
through brokers and
captive agents
35%
10%
65%
Private Lines
Telephone
60%
Agents (captive and
car dealers)
20%
Internet
15%
Direct mail / Affinity
Groups
5%
Increased sales through the
Internet channel
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Länsförsäkringar
Channel Strategy
 No channel conflicts on the personal lines
 Brand Name endorsing each region, e.g. Länsförsäkringar Göteborg
 Same price for all channels, services depends on channel
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Länsförsäkringar
Potential for increased customer commitment in LF
Large customer base – few full-service customers
NON-LIFE
1,824,000
487,000
Life & Non-life
LIFE
418,000
167,000
Life, Non-life
& Bank
170,000
Non-life
& Bank
48,000
Life & Bank
BANK
161,000
Total: Approx. 3.3 million customers
Länsförsäkringar in the market
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CASER
Channel distribution
SPAIN – CASER
Total Business
MARKET
 7,6% Spanish market growth in 2.008
( Life 15,2% - Non life 2% )
 Life 72% Bancassurance - Non life
66,9% ( Agents 38,6 Brokers 28,3 )
CASER
 11,6% Growth ( Life 30,4% - Non life 0,8% )
 Market quota 4% number 5 in the
ranking GWP
Life
Affinities
0%
Banks
98%
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Agents &
Brokers
2%
Affinities
11%
Agents &
Brokers
11%
Banks
78%
Non Life
Affinities
20%
Agents &
Brokers
20%
Banks
60%
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CASER
Multichannel strategy
 Main channel Bancassurance / Shareholders
 No different branding by channels
 Coming from “White brand” in Bancassurance and Affinities
 Price restriction diversification channels higher than highest in Bancassurance
 Service levels the same in all channels
 Economic impact:
 Volume smaller than 22% but 40% in Non life
 Results below average
 No cross subsidising
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Swiss Mobiliar
Channel-Split 2007 in NonLife
(Portfolio)
Swiss Market
2%
3%
Call-Centre
0%
1%
25 %
12 %
70 %
87 %
Total Market
(CHF Mrd.):
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Mobiliar
Internet
Brokers
Agents
15.9
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Swiss Mobiliar
Business Model
Today
Tomorrow
Call Center
(Mobi24)
Internet
(Assistance only)
(Information only)
Call Center
(Mobi24)
Agencies
Some local
Brokers
Internet
Agencies
Local Referal
Partners
Some local
Brokers
Local Referal
Partners
Using more channels, but all business canalised through local general agencies.
Commercial business possible also through brokers
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Swiss Mobiliar 5 Main Drivers for Successful Implementation of
integrated Multi Channel Business Model
consumer-friendly
internet-products with
optimized „bridges“ to
agent channel
„protection" of portfolios
and customers in multichannel environment
high availability and
consistency of
customer data
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identical price for
identical coverage in all
sales channels
harmonized
commissions for
transactions over agents
and internet
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Tapiola
Market Channel distribution
Finland / Tapiola
Market Description
Non Life 2007
Brokers
7%
MARKET
 Market value 2008:15bn
 Finland is predominately a direct market
 Exception; car dealers and tied
agents / franchise office
Direct
93%
Life 2007
Tapiola
 Tapiola Group is at present a financial
conglomerate consisting of seven
companies
 13.97% of the market = 3rd largest
Group
 164 Sales point of which 61 are own
offices and rest is exclusive service
offices
 3000 employees
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Brokers
4%
Direct
96%
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Tapiola
Non Life 2007
Brokers
1.2 %
Multichannel strategy






Agents = ;
 Car dealers and
 Agents = Franchise sales offices
which are exclusive to Tapiola
No price or service differentiation
between channels
Brokers mainly in industrial business
Agents
46.2 %
Direct
52.6 %
Life 2007
Brokers
0.3 %
Agents
2.4 %
Increased importance of call-centres
and internet as sales channels
Bancassurance related concepts
increasing in importance
Increased importance of white-label
products
Direct
97.4 %
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They asked rabbi Ben Zoma:
Who is a wise man?
He said
The man that always finds something to
learn from the others
Thanks for your attention
Muchas GRACIAS
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