1. Life Insurance Market - Potential Adina Nica – Mercury Research

2. © 2004 – Mercury Research Objectives Awareness and usage of insurance services Life insurance – Sales presentations success – Owners profile – Perceived advantage of using an insurance plan – Barriers to using an insurance plan

3. © 2004 – Mercury Research Methodology Quantitative study: – 1,345 persons over 15 y.o., urban and rural – maximum error margin: +/-2.7% In-depth interviews with non-users of insurance services

4. © 2004 – Mercury Research Insurance Services Awareness Base: 1,345 persons

5. © 2004 – Mercury Research Insurance Services Present Usage and Future Intentions Base: 1,345 persons over 15 y.o.

6. © 2004 – Mercury Research Life Insurance Regional Differences Base: 1,345 persons over 15 y.o.

7. © 2004 – Mercury Research Life Insurance Demographic Differences Life Insurance UsersPopulation above 15 y.o. *out of people who declared their incomes 30% household income over USD300 44% are 30-44 y.o. 36% above USD150 monthly personal income* 15% household income over USD300 25% are 30-44 y.o. 16% above USD150 monthly personal income 73% married 58% married 45% have children 29% have children

8. © 2004 – Mercury Research Life Insurance Users Population above 15 y.o. 15% in Bucharest 8% in Bucharest 46% in Transilvania, Banat, Crisana, Maramures 33% in Transilvania, Banat, Crisana, Maramures 69% live in urban locations 38% in cities over 200 k inhabitants 54% live in urban locations 21% in cities over 200 k inhabitants Life Insurance Demographic Differences

9. © 2004 – Mercury Research Perceived Advantages of Life Insurance Base: 910 persons, who have heard of life insurance

10. © 2004 – Mercury Research Barriers to using life insurance Typology I: Single living, not married Typology II: Beginners (in career, family life) Potential users 27-35 Bucharest have been delivered a sales presentation personal income over USD200 income over USD150/family member

11. © 2004 – Mercury Research Barriers to using life insurance Typology I: Single living, not married, have sufficient income to pay for a life insurance Consider life insurance only for married people The emotional benefit (safety/protection for the family) is not relevant to them Consider life insurance a secondary priority “If I die today the dear ones will suffer only spiritually not materially”

12. © 2004 – Mercury Research Typology II: Beginners (in career, family life), have sufficient income to pay for a life insurance The emotional benefit (safety/protection for the family, protection in case of accident) is relevant to them Main barrier: uncertainty of the future Prefer to invest money in something more tangible “Future is not safe” “I better wait: if tomorrow things go better I will be able to sign an insurance policy, but if it is worse, I take the risk to lose the money I pay until that moment” Barriers to using life insurance

13. © 2004 – Mercury Research Other barriers Lack of models (friends, relatives who have a life insurance) Fear of possibility to lose the money invested – money depreciation – uncertainty about how the insurance company evaluates the money paid Barriers to using life insurance

14. © 2004 – Mercury Research Life insurance - not high purchase intentions Early adopters: young, higher incomes, married, with children, living in large cities Bucharest: high potential but sales force less aggressive Conclusions Barriers in using card insurance - lack of relevancy of the main benefit - uncertainty regarding the future - lack of understanding of calculation procedures Advantages of having a life insurance: protection in case of death/accident - strong, clearly understood by the users - less aknowledged by non-users - should be promoted to attract non-users

15. © 2004 – Mercury Research For more information, please contact: adina_nica@mercury.ro