Finaccord presentation at the 7th Annual Bancassurance Forum in Vienna in February 2014, organised by Fleming Europe. The Agenda of the presentation included: - Key factors that shape bancassurance strategies - Analysis of the strategies used by the world's 125 largest retail banking groups - Analysis of differences across global bancassurance markets - Future bancassurance outlook

1. Global Bancassurance Strategies
Bancassurance Models
Global Bancassurance Strategies
Around theBancassurance Forum
World
Presentation at 7th Annual
Vienna, February 11th – 12th 2014
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
1

2. Global Bancassurance Strategies
Agenda
 Key factors that shape bancassurance strategies
 The meta level: strategies used by the world's 125 largest
retail banking groups
 The
country
level:
bancassurance markets
differences
across
global
 Future outlook
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
2

3. Global Bancassurance Strategies
Key Factors that Shape Bancassurance Strategies
1. Meta level:
Regulation
Forced divestment
Bancassurance
Strategies
2. Country level:
© Finaccord Ltd., 2014
Regulation
Market characteristics
Web: www.finaccord.com. E-mail: info@finaccord.com
3

4. Global Bancassurance Strategies
Key Factors that Shape Bancassurance Strategies
1. Meta level
New regulation:
New capital requirements under the
Basel III Accords
Forced divestment:
Several banking groups have been
forced to divest assets
2. Country level
Regulation:
Mediation laws, insurance shareholding
of banks, product regulation
Market characteristics:
Maturity, insurance penetration
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
4

5. Global Bancassurance Strategies
Bancassurance Strategies on a Meta Level
Segmentation of 125 retail banking groups between those with captive underwriters, those with
joint venture underwriters and those with both captive and joint venture underwriters, 2013
None, 34.4%
Captive,
41.6%
Joint
venture,
10.4%
Captive and
joint venture,
13.6%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
5

6. Global Bancassurance Strategies
Bancassurance Strategies on a Meta Level: Captives and JVs
Ranking of banking groups by value of premiums of captive and joint venture underwriters, 2012
Rank Group
1
2
3
4
5
6
7
8
9
10
Premiums (USD billion)
Crédit Agricole
ING Group
BNP Paribas
Bradesco
Crédit Mutuel
Lloyds Banking Group
Société Générale
HSBC
NongHyup Bank
Intesa Sanpaolo
29.00
26.07
25.47
21.13
15.17
13.13
13.09
13.04
9.11
7.28
Total of above
172.49
Other retail banking
groups in world's top 125
164.52
Grand total
337.01
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
6

7. Global Bancassurance Strategies
Bancassurance Strategies on a Meta Level: Divestments
Examples:
ING Group:
Needs to divest its insurance subsidiaries as a
requirement of the EC
RBS Group:
One condition of the bail-out has been the
divestment of the Direct Line Group
HSBC:
In 2011, the group announced a large-scale
retrenchment of insurance operations
Santander:
The group has shifted its strategy from using
captive to joint venture underwriters
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
7

8. Global Bancassurance Strategies
Bancassurance Strategies on a Meta
Level: Strategic Partnerships
Segmentation of 125 retail banking groups between those with and
those without one or more strategic insurance partners, 2013
One or more
strategic
insurance
partners,
41.6%
No strategic
insurance
partner,
58.4%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
8

9. Global Bancassurance Strategies
Bancassurance Strategies on a Meta Level:
Strategic Partnerships
Unweighted provider share of strategic bancassurance partnerships, 2013
Aviva, 8.5%
Allianz, 5.6%
Prudential,
5.6%
Zurich, 5.6%
Ageas, 4.2%
other, 57.7%
AXA, 4.2%
CNP
Assurances,
4.2%
MAPFRE, 4.2%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
9

10. Global Bancassurance Strategies
Bancassurance Strategies on a Country Level
Estimated distribution share of bancassurance in life insurance, 2012
100%
80%
60%
40%
20%
0%
BR
ES
FR
SK
PL
HK
IT
BE
ID
TH
MX DE
IN
JP
CL
VN
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
10

11. Global Bancassurance Strategies
Bancassurance Strategies on a Country Level
'The Southern Europe model' (operating models, life and non-life insurance, weighted), 2011/2012/2013
External underwriter
Multiple external underwriters
Captive underwriter
JV underwriter
Other
tricker
France
Italy
Brazil
Mexico
0%
20%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
40%
60%
Web: www.finaccord.com. E-mail: info@finaccord.com
80%
100%
11

12. Global Bancassurance Strategies
Bancassurance Strategies on a Country Level
'The multiple underwriters model' (operating models, life and non-life insurance, weighted), 2012
External underwriter
Multiple external underwriters
Captive underwriter
JV underwriter
Other
tricker
Japan
South Korea
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
12

13. Global Bancassurance Strategies
Bancassurance Strategies on a Country Level
Asia displays various market structures (operating models, life and non-life insurance, weighted), 2012
External underwriter
Multiple external underwriters
Captive underwriter
JV underwriter
Other
tricker
Hong Kong
India
Indonesia
Thailand
Vietnam
0%
20%
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
40%
60%
Web: www.finaccord.com. E-mail: info@finaccord.com
80%
100%
13

14. Global Bancassurance Strategies
Future Outlook on the Meta Level: Asia's Rise
Segmentation of the 15 largest retail banking groups in China between those with a
captive, those with a joint venture and those with both a captive and joint venture, 2013
Captive,
13.3%
Captive and
joint venture,
13.3%
None, 40.0%
Estimated total customer
base: 1.3 billion
Source: Finaccord Global Bancassurance reports
© Finaccord Ltd., 2014
Joint
venture,
33.3%
Web: www.finaccord.com. E-mail: info@finaccord.com
14

15. Global Bancassurance Strategies
Future Outlook on the Meta Level: Europe's Fall?
 High growth countries: Latin American countries +
Asian emerging countries
 Low growth countries: Northern European countries +
developed Asian countries + North America
 Problematic countries: Southern European countries +
UK
 Opportunities: African / Middle Eastern countries
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
15

16. Global Bancassurance Strategies
Any questions?
Sources and related Finaccord publications:
Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups
Creditor Insurance in Latin America
Creditor Insurance in Northern, Central and Eastern Europe
Creditor Insurance in Southern and Western Europe
Life Bancassurance in the Asia-Pacific Region: Investment-Related Life Insurance and Retirement Savings
Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance
Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings
Life Bancassurance in Europe: Protection-Related Life Insurance
Life Bancassurance in Latin America: Protection-Related Life Insurance
Non-Life Bancassurance in Europe: Accident and Health Insurance
Non-Life Bancassurance in Europe: Motor and Household Insurance
Bancassurance country reports (covering 30 different countries in the Asia-Pacific region, Europe and Latin America)
© Finaccord Ltd., 2014
Web: www.finaccord.com. E-mail: info@finaccord.com
16