Transcript Master Title Slide spanning 2/3 Grid

Preparing for the era of
the mega-fund
May 2012
D Glenn Sedgwick
Accenture's latest report…
Copyright © 2012 Accenture All rights reserved.
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Today's Agenda
• Forces of Structural Change
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Today's Agenda
• Forces of Structural Change
• Business Model Innovation
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Today's Agenda
• Forces of Structural Change
• Business Model Innovation
• Getting Started
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Forces of Structural Change
• Growth and Consolidation
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Our Industry will be a very different place…
Total Funds under Management (Trillion $)
7
6
5
4
3
2
1
0
2012
2026
Source: APRA Annual Superannuation Bulletin June 2011
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Our Industry will be a very different place…
Total Funds under Management (Trillion $)
7
6
5
4
3
over $2 Trillion
2
1
0
2012
2017
2026
Source: APRA Annual Superannuation Bulletin June 2011
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Our Industry will be a very different place…
Total Funds under Management
(Trillion $)
7
Number of Funds
450
400
6
350
5
300
250
4
197
200
3
2
386
over $2 Trillion
150
100
1
50
0
0
2012
2017
2026
Source: APRA Annual Superannuation Bulletin June 2011
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2012
2017
Source: Rice Warner Media Release December 2011
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Our Industry will be a very different place…
Total Funds under Management
(Trillion $)
Number of Funds
450
7
400
6
350
5
300
250
4
3
2
200
over $2 Trillion
1
50
0
0
2035
Source: APRA Annual Superannuation Bulletin June 2011
Copyright © 2012 Accenture All rights reserved.
197
150
100
2012 2017 2026
386
74
2012
2017
2035
≈74 Funds
Biggest @ ≈$350 Billion
Average fund ≈$80-$90 Billion
Source: Rice Warner Media Release December 2011
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Forces of Structural Change
• Growth and Consolidation
• Government Reform
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Forces of Structural Change
• Growth and Consolidation
• Government Reform
• Aging and Competition
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Forces of Structural Change
• Growth and Consolidation
• Government Reform
• Aging and Competition
• Consumers are Changing
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The industry today
2011
FUA $ Billion
SMSF
Retail
Super
Industry
Funds
Public
Sector
Corporate
Small
Source: Rice Warner Media Release December 2011
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A new industry structure
2011
FUA $ Billion
2016
“A 3 cornered contest”
SMSF
LOW COST?
Retail
Super
HIGH
RETURN?
LOW
SERVICE?
?
Industry
Retail
SMSF
HIGH
RETURN?
FULL
SERVICE?
HIGH COST?
Industry
Funds
Public
Sector
Corporate
Small
HIGH RETURN?
FULL SERVICE?
HIGH COST?
Source: Rice Warner Media Release December 2011
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Shift to Online
Please indicate the percentage of your business generated by each of
the following channels.
31%
Non tied advisory channels
28%
29%
32%
Tied or captive agents
14%
15%
15%
Bancassurance
Phone (branch, call centres)
Internet
(PC and mobile devices)
3%
2%
2007**
44%
29% drop
12.5% drop
6% drop
14%
11%
4%
37%
Changes between
2007 - 2013
250% gain
8%
400% gain
2010*
2013*
1. Retailers, travel firms, etc.
Source: Accenture Global Multichannel Distribution Survey, 2010.
Accenture Global Insurance Global Survey, 2007
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Potential Solutions
New operating models
Case Study:
Cometa is using Accenture’s business process
outsourcing services
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Potential Solutions
New operating models
Case Study:
Cometa is using Accenture’s business process
outsourcing services
Benefits
• Cut acquisition time for new enrolments by 20%
• Reduced hard-copy inputs from employers by 75%
• Reduced the time it takes to invest in Super by 80%
• Cut pension payment times by 30%
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Potential Solutions
Case Study:
• Face to face transactions costing US$15 each
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Potential Solutions
Case Study:
• Face to face transactions costing US$15 each
Benefits
• By 2009 – 39 millions out of 41 million (95%) of
member transactions completed through an
online channel – costing 10 cents each.
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Potential Solutions
Case Study: WIP
Members: ≈ 900K
FUM: ≈ 35 Billion
Workplaces: ≈ 60K
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Potential Solutions
Case Study: WIP
Members: ≈ 900K
FUM: ≈ 35 Billion
Workplaces: ≈ 60K
Approach:
1. Move from “registry processing” to “member-centric”
2. Replace former legacy apps (Pensions/Insurance)
3. Embrace online and mobile
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So What? … 3 things
• Get a Plan
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So What? … 3 things
• Get a Plan
• Get Ready
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So What? … 3 things
• Get a Plan
• Get Ready
• Get Going
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Soon to be released Accenture global
pensions survey
• 8,100 consumer interviews in 15
countries
• 15 country reports: market trends
and opportunities for insurers
• Pensions landscape: pension
landscape overview, insurers
imperatives and key pension market
trends
• The pension potential index:
assessment of 21 countries according
to a combination of variables in order
to identify the level of opportunities
and challenges for insurers
• Survey report - global results as well
as key results by country and
consumer profile (e.g. age, gender)
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