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31.03.2015 - 1Eurapco - Creating value together Eurapco – European Alliance Partners Company Avoiding Conflicts and Dissatisfaction between Multichannel.

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Presentation on theme: "31.03.2015 - 1Eurapco - Creating value together Eurapco – European Alliance Partners Company Avoiding Conflicts and Dissatisfaction between Multichannel."— Presentation transcript:

1 31.03.2015 - 1Eurapco - Creating value together Eurapco – European Alliance Partners Company Avoiding Conflicts and Dissatisfaction between Multichannel and Sales Jacob Flemming 17.09.2009 / Vienna

2 31.03.2015 - 2Eurapco - Creating value together 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

3 31.03.2015 - 3Eurapco - Creating value together Partners

4 31.03.2015 - 4Eurapco - Creating value together Partners

5 31.03.2015 - 5Eurapco - Creating value together TOTAL Business 2008 (million Euros) TOTAL 43’361

6 31.03.2015 - 6Eurapco - Creating value together Non life Business 2008 Premium income (million Euros) TOTAL 31’412

7 31.03.2015 - 7Eurapco - Creating value together Life Business 2008 Premium income (million Euros) and market positioning Note that the figures mentioned are not directly comparable between Partners as their accounting rules and requirements differ. n.a.41295134 TOTAL 11’949

8 31.03.2015 - 8Eurapco - Creating value together Multichannel concept Clients Individual Groups Corporations Channel Agents Direct Banks Corporate agreements Brokers Factory UW Policy adm. Post sales Accounting Investments IT

9 31.03.2015 - 9Eurapco - Creating value together Business Value proposition and model Traditional Ag & BksBancassuranceDirect MarketingCase orientedSegment orientedCherry pickers ProductWide 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 ITVery complex processesProcesses must be adapted to the Bank Fixed – streamlined ClaimsInvolvement desireNo involvement TrainingIn depth - wideBasicIn 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

10 31.03.2015 - 10Eurapco - Creating value together Business Value proposition and model Traditional Ag & BksBancassuranceDirect Service levels Segmented Agents – intranets Brokers – Access to UW / Claims Segment orientedCherry pickers ProductWide 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 ITVery complex processesProcesses must be adapted to the Bank Fixed – streamlined ClaimsInvolvement desireNo involvement TrainingIn depth - wideBasicIn 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

11 31.03.2015 - 11Eurapco - Creating value together 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

12 31.03.2015 - 12Eurapco - Creating value together 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

13 31.03.2015 - 13Eurapco - Creating value together France – Covéa (2008) MARKET  French Market shrinks by 6% in 2008 ( Life -10.3%, Non life +4% )  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 Channel distribution Covéa

14 31.03.2015 - 14Eurapco - Creating value together 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 Covéa

15 31.03.2015 - 15Eurapco - Creating value together 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 Covéa

16 31.03.2015 - 16Eurapco - Creating value together Source: Company Data 2007/2008 figures not available Description Sales Channel EUREKO

17 31.03.2015 - 17Eurapco - Creating value together 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 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) Distribution channel DirectAgentsBrokersBank CharacteristicsBrand Developing operations in Romania, Bulgaria and Cyprus Medium sized Life and Non-Life insurer Niche market player,single distribution Strong bancassurance as result of BCP relation Distribution Strengths EUREKO

18 31.03.2015 - 18Eurapco - Creating value together 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 Occupational Health DirectBanking Product channels Distribution channels Pensions Health The Netherlands - ACHMEA Broker Property & Casualty EUREKO

19 31.03.2015 - 19Eurapco - Creating value together 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 GOTHAER Channel distribution

20 31.03.2015 - 20Eurapco - Creating value together 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 GOTHAER

21 31.03.2015 - 21Eurapco - Creating value together 31,4 50,2 40,0 31,3 41,6 16,7 43,0 Market shares non-life per regional insurance company 27,7 45,9 36,8 38,9 57,9 52,2 50,9 41,5 55,6 38,5 35,8 44,5 41,5 36,7 43,7 30,1 49,1 75% of the Swedish population lives outside Stockholm Länsförsäkringar

22 31.03.2015 - 22Eurapco - Creating value together Distribution of Life, Non-Life and Bank products Commercial Lines Private Lines Salaried staff35% Captive agents 10% Brokers65% Increased sales through brokers and captive agents Telephone60% Agents (captive and car dealers) 20% Internet 15% Direct mail / Affinity Groups 5% Increased sales through the Internet channel Länsförsäkringar

23 31.03.2015 - 23Eurapco - Creating value together 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 Länsförsäkringar

24 31.03.2015 - 24Eurapco - Creating value together Potential for increased customer commitment in LF Large customer base – few full-service customers Total: Approx. 3.3 million customers 487,000 Life & Non-life LIFE 418,000 BANK 161,000 167,000 Life, Non-life & Bank 170,000 Non-life & Bank 48,000 Life & Bank NON-LIFE 1,824,000 Länsförsäkringar in the market Länsförsäkringar

25 31.03.2015 - 25Eurapco - Creating value together SPAIN – CASER 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 Channel distribution CASER

26 31.03.2015 - 26Eurapco - Creating value together 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 CASER

27 31.03.2015 - 27Eurapco - Creating value together Total Market (CHF Mrd.): 15.9 Channel-Split 2007 in Non- Life (Portfolio) Mobiliar 87 % 12 % 1 % 0 % Swiss Market 70 % 25 % 3 % 2 % Agents Call-Centre Internet Brokers Swiss Mobiliar

28 31.03.2015 - 28Eurapco - Creating value together Business Model Some local Brokers Local Referal Partners Call Center (Mobi24) (Assistance only) Internet (Information only) Agencies Call Center (Mobi24) Internet Some local Brokers Local Referal Partners Agencies Using more channels, but all business canalised through local general agencies. Commercial business possible also through brokers Today Tomorrow Swiss Mobiliar

29 31.03.2015 - 29Eurapco - Creating value together 5 Main Drivers for Successful Implementation of integrated Multi Channel Business Model high availability and consistency of customer data „protection" of portfolios and customers in multi- channel environment consumer-friendly internet-products with optimized „bridges“ to agent channel identical price for identical coverage in all sales channels harmonized commissions for transactions over agents and internet Swiss Mobiliar

30 31.03.2015 - 30Eurapco - Creating value together Finland / Tapiola Market Description MARKET  Market value 2008:15bn  Finland is predominately a direct market  Exception; car dealers and tied agents / franchise office Tapiola  Tapiola Group is at present a financial conglomerate consisting of seven companies  13.97% of the market = 3 rd largest Group  164 Sales point of which 61 are own offices and rest is exclusive service offices  3000 employees Market Channel distribution Tapiola

31 31.03.2015 - 31Eurapco - Creating value together 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  Increased importance of call-centres and internet as sales channels  Bancassurance related concepts increasing in importance  Increased importance of white-label products Tapiola

32 31.03.2015 - 32Eurapco - Creating value together Thanks for your attention Muchas GRACIAS They asked rabbi Ben Zoma: Who is a wise man? He said The man that always finds something to learn from the others


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