1. Insurance market Briefing notes and sales support for news media sales teams

2. This deck is split into two sections: Section 1 An overview of the Australian Insurance market (car, home and contents and health). Media owners must understand the competitive environment and business needs of their clients in order to provide optimal advertising solutions. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category. Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that are consistently relevant to clients within a category. Section two contains research about how news media can help insurance providers engage with key target markets. What’s in this deck?

3. Section 1 Key insurance markets: an overview

4. Car insurance

5. Industry revenue is estimated to have grown at an annualised 2.5% over the five years through 2011-16 to reach $19.4 billion. Car insurance: revenue Estimated revenue: $19.4 billion –Annual growth 2011-16: 2.5% –Businesses: 47 Source: IBISWorld, Car Insurance in Australia, November 2015.

6. Car insurance: key players Revenue by company Rank Company 2015 (revenue $billion) 2016* (revenue $billion) Change (%) 1 Insurance Australia Group Ltd (Market share: 26.3%) 5.05.1+2.0 2 Suncorp Group Ltd (Market share: 26.3%) 5.05.1+2.0 3 Allianz Australia Ltd (Market share: 5.7%) 1.01.1+3.2 4 QBE Insurance Group Ltd (Market share: 5.6%) 0.91.1+10.1 The four largest players in the car insurance industry account for 64% of revenue, while IAG and Suncorp alone, account for over half of market revenue. *Estimate. Source: IBISWorld, Car Insurance in Australia, November 2015.

7. Car insurance policy owners: who are they? Older age groups o People aged 45 to 64: 34% o Average age: 48yrs o People aged 45+ over index by 16% Gender o Female: 50% o Male: 50% Higher social grades o Social grade A over indexes by 8% Figures refer to people who currently have comprehensive car insurance coverage. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

8. Consumers planning to purchase car insurance: who are they? Younger-middle age o People aged 30 to 44: 32% o Average age: 43yrs o People aged 30 to 44 over index by 24% Gender o Female: 43% o Male: 57% o Men over index by 15%. Figures refer to people planning to purchase comprehensive car insurance in the next 12-months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

9. Home and Contents insurance

10. Home and contents insurance: revenue Home and contents insurance industry revenue: $9.2 billion –Annual growth 2011-16: 5.9% –Businesses: 98 Source: IBISWorld, Home and Contents Insurance in Australia, October 2015. Industry revenue is estimated to have grown at an annualised 5.9% over the five years through 2011-16 to reach $9.2 billion.

11. Home and contents insurance: four key players Revenue by company * RankCompany 2015 (revenue $billion) 2016 (revenue $billion) Change (%) 1 Insurance Australia Group Ltd (Market share: 34.3%) 2.853.16+10.9 2 Suncorp Group Ltd (Market share: 22.9%) 1.972.11+7.1 3 QBE Insurance Group Ltd (Market share: 13.4%) 1.201.23+2.5 4 Allianz Australia Ltd (Market share: 11.8%) 1.021.09+6.9 The top four companies in the Home and Contents insurance industry account for an estimated 80% of industry revenue. *Estimate. Source: IBISWorld, Home and Contents Insurance in Australia, October 2015.

12. Home and contents insurance policy owners: who are they? Older age groups o People aged 45 to 64: 36% o Average age: 49yrs o People aged 45+ over index by 24% Gender o Female: 50% o Male: 50% Higher social grades o Social grade A over indexes by 8% Figures refer to people who currently have home and contents insurance coverage. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

13. Consumers planning to purchase home and contents insurance: who are they? Millennials to Baby Boomers o People aged 30 to 44: 30% o Average age: 43yrs o People aged 30 to 44 over index by 19% Gender o Female: 50% o Male: 50% o Men are slightly more likely be planning to purchase home and contents insurance: +4% Figures refer to people planning to purchase home and contents insurance in the next 12-months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

14. Health insurance

15. Health insurance: revenue Health insurance industry revenue: $22.5 billion –Annual growth 2011-16: 6.5% –Businesses: 33 Source: IBISWorld, Health Insurance in Australia, May 2016. Industry revenue is estimated to have grown at an annualised 6.5% through 2011-16 to reach $22.5. billion.

16. Health insurance: top five players Revenue by company RankCompany 2015 (revenue $billion) 2016 * (revenue $billion) Change (%) 1 Medibank Private Ltd (Market share: 27.5%) 5.9 6.2+5.1 2 BUPA Australia Holdings Pty Ltd Market share: 27.1%) 5.8 6.1+5.2 3 Hospitals Contribution Fund of Australia Ltd (Market share: 11.1%) 2.4 2.5+4.2 4 NIB Holdings Ltd (Market share: 6.7%) 1.4 1.5+7.1 5 HBF Health Ltd (Market share: 5.8%) 1.3 0.0 The top four health insurers account for an estimated 72% of industry revenue. The major players in the industry have increased their combined market share as a result of several major mergers and acquisitions in recent years. *Estimate. Source: IBISWorld, Health Insurance in Australia, May 2016.

17. Health insurance policy owners: who are they? Older age groups o People aged 45 to 64: 32% o Average age: 47yrs o People aged 65+ over index by 16% Gender o Female: 50% o Male: 50% o Men are slightly more likely to own health insurance: +3% Figures refer to people who currently have health insurance coverage. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

18. Consumers planning to purchase health insurance: who are they? Younger generations o People aged 14 to 29: 35% o Average age: 40yrs o People aged 14-29 over index by 29% Gender o Male: 51% o Female: 49% o Men are slightly more likely to be planning to purchase health insurance: +4% Figures refer to people who intend to purchase health insurance in the next 12-months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

19. Section 2 Support slides for sales presentations

20. The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive sales for insurance services, and to show how news media can help to influence the sales process. These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and should be adapted to suit your particular presentation requirements. About these slides Recap client/agency brief Telecommunication industry support slides Client specific analysis Recommendations

21. News media reaches consumers News media reaches 93% of consumers active in the insurance market (car, health and home and contents): 12 million readers who own comprehensive car insurance 10.2 million readers who have health insurance 11.3 million readers who have home and contents insurance Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. News media delivers superior coverage of consumers already active in the insurance market

22. By comparison… 861,000 non-news media readers have comprehensive car insurance 735,000 non-news media readers have health insurance 735,000 non-news media readers have home and contents insurance Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. Non-news media readers are less active in the insurance market

23. 929,000 readers who plan to purchase comprehensive car insurance 910,000 readers who intend to obtain health insurance 898,000 audience members planning to purchase home and contents insurance Get the best from news media platforms News media in print and digital formats are read by 92% of those actively planning to buy insurance products or services in the next 12 months. * * Figure refers to health, home and contents and comprehensive car insurance. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

24. Engage prospects early 93% (1.9 million) of people planning to buy a car within the next year read news media (Only 138,000 non-news media readers plan to do the same). 93% (2 million) of people planning to buy a property in the next year read news media (Only 145,000 non-news media readers plan to do the same). 93% (13.6 million) of people taking steps now to stay healthy in the future read news media (Only 1 million non-news media readers are doing the same). Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. Engaging prospects before they enter the market may increase brand recognition and affinity, leading brands to become a part of the consideration set when the time comes to purchase

25. News media consumers spend big News media reaches 94% of the top 20 percent of spenders on health insurance o Non-news media readers are 27% less likely to be among the top 20 percent of spenders. Nine in ten of the top 20 percent of spenders on building and contents insurance engage with news media. o Non-news media readers are 21% less likely to be among the top 20 percent of spenders. NB. Data not available for car insurance category. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only. The news media audience over-indexes in its reach of the country’s top spenders on insurance products and services

26. Insurance prospects regularly engage with newspapers Consumers responsible for household finance decisions and planning to purchase home and contents insurance * are 5% more likely to be heavy newspaper readers (i.e. 7+ editions a week) than the general public. Current Health insurance policy holders are 10% more likely to be heavy newspaper readers than the general public. Consumers planning to purchase a new car in the next year are 34% more likely to be heavy newspaper readers. Insurance prospects are more likely to be mid- or heavy- print newspaper readers. *In the next 12 months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

27. Client specific analysis & recommendations This is the point to bridge to a client specific discussion. Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to Analyses that address the client’s specific situation, challenges and opportunities. Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.

28. newsmediaworks.com.au