Fundamental questions 2012 BUSINESS REPORT

Transcription

1 Fundamental questions 2012 BUSINESS REPORT

2 2012 Fundamental questions bnp paribas CardiF 02 a 03 Contents P. 11 QUESTION 01 How do you manage the assets of the company in an unstable economy? P. 12 QUESTION 02 Regulations governing your businesses have become tighter. What impact does this have for your customers? P. 14 QUESTION 03 What solutions do you offer to address new trends in consumption? P. 16 QUESTION 04 Why are partnerships the pillar of your business development model? P. 18 QUESTION 05 How do you work with your partners? P. 20 QUESTION 06 Concretely, how do you protect us? P. 21 QUESTION 07 What do you do with our savings? P. 22 QUESTION 08 Are your clients satisfied with the products you offer? P. 24 QUESTION 09 Which countries have delivered the most robust growth and have the best outlook? P. 26 QUESTION 10 What do you mean when you say you aim to be a digital insurer? Fundamental questions, straight answers Business report is by defi nition designed to provide a company s stakeholders with information on its activities during the previous year. The content of this report conforms to this practice. The format, however, takes a different approach, asking 12 fundamental questions to BnP Paribas Cardif teams around the world. Their answers to these very direct questions will help you better understand who we are and how we can bring you concrete solutions. We hope you ll fi nd this straight talk refreshing. Who are BnP Paribas Cardif? BnP Paribas Cardif insures 90 million people around the world. a subsidiary of bnp paribas, the company aims to be the global benchmark for insurance partnerships and the leader in personal insurance solutions. bnp paribas Cardif operates in 36 countries, with strong positions in europe, latin america and asia. the company provides savings and protection products and services and distributes them through a network of partners, including banks, credit companies, the insurance units of automotive manufacturers, retail chains, insurance brokers, telecoms operators, etc. direct relationships guarantee an in-depth knowledge of partners methods, as well as their clients. they enable bnp paribas Cardif to focus on the different stages in the client journey and determine the right moment to propose him a value-added offer. To efficiently design and distribute these products, BNP Paribas Cardif deploys an organization across three networks: bnp paribas retail banking, partnerships, digital & brokers. P. 28 QUESTION 11 What kind of innovation do you bring to insurance? P. 29 QUESTION 12 You market insurance cover, but what about the related services? Published by BNP Paribas Cardif Communication Photos credits: Jean Chiscano, Group Media Library Conception, execution: contact@publicorp.fr Fabrication, printing: Cimaya Group contact@cimaya.fr This document is printed following PEFC Certification (Pan-European Forest Certification). 40YEARS OF EXISTEnCE A STRONg ASSET FOR THE GROUP OPEn HUMAn CEnTRIC SUSTAInABlE

3 2012 Fundamental questions bnp paribas CardiF 04 a 05 TWO CORE ACTIVITIES In 36 COUnTRIES SAVINGS BNP Paribas Cardif proposes a range of savings solutions (unit-linked life insurance contracts, diversified asset contracts, capital protected products, etc.) designed to help people build up and grow their savings, plan for retirement, and achieve their life plans. PROTECTION Building on a position as a recognized specialist in creditor insurance (CI), BNP Paribas Cardif has progressively expanded its protection portfolio in personal risk (health insurance, property & casualty insurance, involuntary unemployment, etc.) as well as products for budget and income protection, credit card protection and extended warranty. gross WRITTEN PREMIuMS BIllIOn EUROS X3 In 10 YEARS STRONg POSITIONS In 3 REGIOnS OF THE WORlD 44% OF BUSInESS In FRAnCE LATIN AMERICA ARGENTINA BRASIL CHILE COLOMBIA MEXICO PERU 1.2 billion GWP in protection EUROPE* 19.3 billion GWP in savings and protection OF WHICH 10.8 BILLION IN FRANCE 56% OF BUSInESS OUT OF FRAnCE ASIA CHINA INDIA JAPAN SOUTH KOREA TAIWAN THAILAND VIETNAM 3.8 billion GWP in savings and protection 3 DISTRIBUTIOn CHANNELS RETAIL BANKING BNP PARIBAS This channel oversees the distribution of insurance products by the BNP Paribas Retail Banking network. Its main partners are BNP Paribas in France, BNL in Italy, BNP Paribas Fortis (Belgium, Luxembourg and Poland) and TEB in Turkey. PARTNERSHIPS BNP Paribas Cardif aims to become the global benchmark in insurance partnerships. This channel works with a portfolio of top-tier distribution partners, including banks, consumer credit companies, credit subsidiaries of automakers, retail chains, phone companies, etc. DIGITAL & BROKERS This channel concentrates the digital expertise of BNP Paribas Cardif, which plays an increasingly important role in partner distribution strategies. It also serves brokers, a strategic segment in many European countries, notably Belgium, the Netherlands and the United Kingdom. 10,000 EMPlOYEES* * Headcount for legal entities controlled by BNP Paribas Cardif: over 8,000 employees. 1 EnTITY 4 LEGAL STRUCTURES BNP PARIBAS CARDIF CARDIF-ASSURANCES RISQUES DIVERS CARDIF ASSURANCE VIE INTERNATIONAL SUBSIDIARIES NATIO ASSURANCE (50%*) WITH AXA * Percentage of direct and indirect shareholding. 2BIllIOn EUROS NET BANKING INCOME 1 BIllIOn EUROS PRE-TAX NET PROFIT * ALGERIA AUSTRIA BELGIUM BULGARIA CROATIA CZECH REPUBLIC DENMARK GERMANY HUNGARY ITALY LUXEMBOURG NORWAY POLAND PORTUGAL ROMANIA RUSSIA SLOVAKIA SPAIN SWEDEN THE NETHERLANDS TURKEY UKRAINE UNITED-KINGDOM 170 BIllIOn EUROS ASSETS UNDER MANAGEMENT 10% OF BNP PARIBAS PRE-TAX NET PROFIT IN 2012

4 2012 Fundamental questions bnp paribas CardiF 06 a 07 DOES THE YEAR 2012 VAlID YOUR BUSInESS DEVElOPMEnT MODEl? BnP PAriBAs CArDiF ProVeD resilient DesPite A VerY turbulent economic AnD FinAnCiAL environment in thanks to the remarkable efforts of our teams, the CompanY achieved its objectives in terms of GroWtH, strategic positioning and business FloWs, GiVinG us a sound FootinG as We move ForWard. ÉriC LoMBArD CHairman and CHieF executive officer WHAT IS YOUR GENERAL ASSESSMENT OF LAST YEAR? Éric Lombard: BNP Paribas Cardif had a very good year in 2012, marked by very dynamic and robust growth for our business. Our gross written premiums exceeded 24 billion euros, thanks to contributions from all our markets. This flowed through to 1 billion euros in pre-tax net profit, an historic record for the company. These very good results reflect the excellent work done by our people in the 36 countries where we operate, as well as the solidity and diversity of our business model. BNP Paribas Cardif has an impressive track record of growth: in ten years we ve tripled our gross written premiums, net banking income and gross operating income. DOES THIS MEAN S BUSINESS MODEL IS STILL VALID MOVING FORWARD? E. L. More than ever. It is efficient, as our results have proved. Our model is based on the distribution of insurance products

5 2012 Fundamental questions bnp paribas CARDIF 08 a 09 EXECUTIVE COMMITEE 90 million CLIENTS INSURED 24.3 BILLION EUROS GWP OF WHICH 23% IN PROTECTION 12.5% COMPOUND ANNUAL GROWTH RATE BETWEEN 2002 & via partners with a range of profiles retail banks, retail chains, the credit subsidiaries of automakers, brokers, etc. Through them, we have access to a vast franchise of end customers. Our savings and protection products are equally diversified, as is our geographic coverage, which is both multi-local and global. This organization allows us to cascade best practices and, above all, effectively manage our risk exposure. Our performance demonstrates that this business model works: in 2012 we counted nearly 90 million policyholders around the world. This enables us to look to the future with confidence and target sustained double-digit growth in profit. We aim to do this by adjusting our model so that BNP Paribas Cardif no longer serves partners with just a single product, but rather proposes a segmented offering that is closely tailored to the needs of their customers. HOW DID YOUR PERFORMANCE BREAK OUT INTERNATIO- NALLY, AND WHAT ABOUT YOUR DOMESTIC MARKETS, WHERE THE OUTLOOK IS MORE UNCERTAIN? E. L. In 2012, 56% of our gross written premiums were generated outside France. The increasingly international profile of BNP Paribas Cardif clearly spurred our excellent year-on-year growth. Asia and Latin America posted growth rates of 25% and 16%, respectively. At mid-term these two regions are expected to account for a third of the company s gross written premiums. The remaining two thirds will come respectively from France and the rest of Europe, which includes Central Europe and Turkey. For example, our international operations generated net inflows from savings of 3 billion euros. By the end of the decade we expect over half of our gross written premiums to come from emerging markets. Our domestic markets made a pivotal contribution in France enjoyed excellent results in a challenging market. Our teams succeeded in gaining market share and introducing new products, allowing us to post better growth than our competitors. In Italy, where we re No. 5 in bancassurance, Cardif Vita s business has now been fully integrated and our partnership with Age as has enabled us to expand in casualy insurance. Belgium also delivered very good results in creditor insurance, while Luxembourg recorded exceptional savings inflows. GIVEN THIS FAVOURABLE CONTEXT, WHAT IS YOUR OUTLOOK? E. L. We re celebrating our 40th year of business this year, and BNP Paribas Cardif makes a very significant 10% contribution to BNP Paribas pre-tax net income. Thanks to sustained business in France and strong growth in Asia and Latin America, our gross written premiums rose 5% in To continue the growth path we have been on for many years, in 2013 we will further expand our portfolio of savings and protection products with three priorities. First, we want to forge increasingly close relations with the end customer, second, we want to embed digital solutions across the company, and third we will continue to adapt to the business model of our partners. BNP Paribas Cardif will continue to deploy its expertise and energies to achieve our ultimate goal of being the global benchmark in insurance partnerships and a leader in personal protection insurance In ten years we ve tripled our gross written premiums, net banking income and gross operating income. Éric Lombard CHAIRMAN AND CHIEF EXECUTIVE OFFICER Find out the video interview of Éric Lombard on 2012 annual results on our website : 1 ÉRIC LOMBARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER 2 PIERRE DE VILLENEUVE MANAGING DIRECTOR 3 STANISLAS CHEVALET CHIEF OPERATING OFFICER, DIGITAL & BROKERS CHANNEL, TECHNOLOGY AND OPERATIONS EFFICIENCY 4 RENAUD DUMORA CHIEF OPERATING OFFICER, FINANCE & RISKS 5 VIRGINIE KORNILOFF CHIEF OPERATING OFFICER, FRANCE AND BNP PARIBAS RETAIL BANKING CHANNEL 6 JEAN-BERTRAND LAROCHE CHIEF OPERATING OFFICER, PARTNERSHIPS CHANNEL 7 GÉRARD BINET MANAGING DIRECTOR 8 OLIVIER CORTES CHIEF FINANCIAL OFFICER 9 JACQUES FAVEYROL CHIEF ACTUARY 10 ISABELLA FUMAGALLI HEAD OF ITALY 11 MICHEL GUIGAL ADVISER TO EXECUTIVE MANAGEMENT 12 XAVIER GUILMINEAU HEAD OF ASIA 13 OLIVIER HÉREIL CHIEF INVESTMENT ans assets management OFFICER 14 LAURENCE HONTARRÈDE HEAD OF CLIENT AND MARKETING STRATEGY 15 SOPHIE JOYAT HEAD OF HUMAN RESOURCES 16 FRANCISCO VALENZUELA HEAD OF LATIN AMERICA

6 questions de Fond 2012 Business environment bnp paribas CardiF 10 a 11 Question 01 HOW DO YOU MANAGE THE ASSETS OF THE COMPANY IN AN UNSTABLE ECONOMY? 12 QUESTIONS WHiLe economic GroWtH HAs slowed in MAture MArKets, asia and latin america Continue to be important drivers For bnp paribas CardiF. development in europe nevertheless remain decisive For the CompanY s Future. TO UNDERSTAND THE YEAR 2012 Questions? We DeFiniteLY HAVe AnsWers. We Create links between our partners and our Clients. our mission is VerY simple: provide each person WitH the insurance solutions they Want and need. WHAT ARE SOME OF THE CHALLENGES YOU FACE? Olivier Héreil : To start with, we face significant macroeconomic challenges. The economic crisis in the euro zone, the historic core of our activities, has proved persistent and even worsened, and has not been entirely offset by our international growth. This situation has given rise to another important issue, the low interest rates in markets, sustained by downward trends in inflation in all countries. Lastly, we face a major upheaval in rules governing the insurance industry, embodied by the Solvency II reform. Ultimately, this new norm is designed to create a stricter framework for our activities. At present, this framework has yet to be finalized and instability continues to reign. HOW HAVE YOU ADAPTED YOUR BUSINESS MODEL AND PRODUCTS TO THIS WEAKENED CLIMATE? O. H. The key to our necessary adaptation is diversification of our geographic footprint and our assets. A geographic diversification of our activities and our assets, first in the emerging markets, reinforcing our investments including in the countries of the new economy : Mexico, Colombia, Thailand. A diversification of our assets in the developed countries, placing priority on corporate bonds, large corporates but also lending to larger French midcaps and real estate investments: port infrastructure concessions or wind power. HAS THIS ALSO CHANGED THE WAY YOU WORK? O. H. We ve increased our presence in certain financial centers such as Italy or Luxembourg, where we set up asset management platforms for our savings assets. We reinforce our expertises while selecting corporate bonds and non rated credits, evaluating real estate and industrial infrastructure projects. WITHIN FIVE YEARS, 50% OF OF S SAVINGS ASSETS UNDER MANAGEMENT WILL COME FROM OUTSIDE FRANCE* 14% OUR BUSINESS COMES FROM EMERGING MARKETS* * Source: BNP Paribas Cardif OLIVIER HÉREIL, DIRECTOR OF ASSETS MANAGEMENT,

7 regulation 2012 Fundamental questions bnp paribas CARDIF 12 a 13 Question 02 REGULATIONS GOVERNING YOUR BUSINESSES HAVE BECOME TIGHTER. WHAT IMPACT DOES THIS HAVE FOR YOUR CUSTOMERS? BANCASSURANCE IS INCREASINGLY REGULATED EVERYWHERE IN THE WORLD WITH MORE AND MORE RULES, INCLUDING SOLVENCY II, BASEL III, IMD 2, ETC. BUT ALTHOUGH THESE REGULATIONS INTRODUCE CONSTRAINTS, ARE COSTLY AND SOMETIMES POORLY CONCEIVED, REGULATION IS HEALTHY AND REFLECTS DIVERSIFICATION. THIS OPENS UP NEW COMMERCIAL OPPORTUNITIES. WHAT ARE THE REGULATIONS WITH WHICH YOU MUST COMPLY? Renaud Dumora: In terms of prudential rule, BNP Paribas Cardif is subject to European Solvency I regulations, and soon Solvency II. The principles involve establishing a prudential framework that mirrors as closely as possible the actual profile of risks incurred by an insurance company. In other words, the risks that the company takes must be consistent with its solvency and capital. From an accounting standpoint we must meet specific IFRS standards for the insurance business. As a bancassurance unit that is part of the BNP Paribas group, we are also impacted by the global Basel III rules, including the specific European provisions known as CRD IV. Lastly, our company is of course subject to the European IMD2 directive, which governs insurance intermediation. THESE RULES ARE DESIGNED ABOVE ALL TO PROTECT CONSUMERS, AREN T THEY? R. D. They are, since their objective is to guarantee the solvency of insurance companies and thus the quality of the promise made to their customers. This is all the more important since the insurance production cycle is inverted. By that I mean that, in exchange for payment of a premium, paid in anticipation, the insurer makes a commitment to the customer. But this protection is specifically covered by the directive on insurance intermediation, which in particular aims to clarify the terms of the contract, provide better advice, and ensure that the cover proposed is aligned with the needs of the customer. The IFRS accounting standard, on Underwriting risks means accepting a certain volatility in the company s net profit compared with forecasts. In 90% of the cases, our risk policy establishes an acceptable maximum variation of 50%. listen OUR PARTNERS TESTIMONIES ON REGULATION RENAUD DUMORA, CHIEF OPERATING OFFICER, RISKS AND FINANCE, the other hand, is designed to provide more detailed and transparent information for investors. More broadly, the interests of the end customer are addressed by specific regulations across Europe. This trend was initiated about a decade ago by the Financial Services Authority, the UK regulator. DO THESE REGULATIONS CHANGE YOUR ORGANIZATION AND YOUR PRODUCT OFFER? R. D. These rules, all of which continue to change, have indeed led to fundamental changes in our organization, impacting management of risk and capital, reporting, communication, regulatory relations, as well as commercial operations. This has been IDENTIFYING RISKS beneficial since these changes bring us a clearly vision of our ability to underwrite a given risk in a given country thanks to a more exacting and, we hope, stable framework for the company. As for our products, throughout Europe this can also impact the pricing of products-savings products, for example, carry greater risk and consume more capital for insurers. The new regulations have also incited BNP Paribas Cardif to offer more protection cover, a segment that is very beneficial in terms of risk diversification, and thus solvency ratios. Solvency II makes qualitative and quantitative risk assessment a major priority, with a dual objective of maintaining both our solvency ratio and our growth. Lastly, new regulations impact our asset allocation strategy. The Solvency II directive, excessively penalizes equity holdings. BNP Paribas Cardif s risk policy is above all anchored in diversification, in savings, from general fund products (diversified and united-link products) with a lower risk profile, and in protection, from creditor insurance to personal and property and casualty insurance. This also means geographic diversification into emerging countries, particularly in Asia and Latin America. With regards to measurement tools, this risk policy leads to definition of risk appetite and risk profiles that are progressively implemented for each individual country and for each business segment. Lastly, this policy emphasizes growth, driving new policy subscriptions and providing the company s managers with a better vision of their risk exposure and their capacity to underwrite additional risks.

8 ConsuMPtion 2012 Fundamental questions bnp paribas CardiF 14 a 15 Question 03 WHAT SOLUTIONS DO YOU OFFER TO ADDRESS NEW TRENDS IN CONSUMPTION? CustoMers Are LiVinG Better AnD LiVinG LonGer. they are more mobile and always ConneCted. they HaVe never Had such a Wide range of CHoiCes and Can access bnp paribas CardiF offers Via any CHannel. the CompanY is adapting to this new ConneCted World LAURENCE HONTARRÈDE DIRECTOR OF CLIENTS & MARKETING STRATEGY, PIERLUIGI VERDEROSA MARKETING DIRECTOR, IN ITALY HOW HAS THE PROFILE OF CUSTOMERS CHANGED? Laurence Hontarrède: New expectations are appearing around the world because customers have a different perspective of the future. Insurance by nature supports people throughout their lives. The possibilities they enjoy all represent opportunities to be explored in terms of insurance. One of the most significant factors amidst these changes is the aging of the world s population. This has spawned recent demand for health cover and income protection for people in different stages of their lives. Pierluigi Verderosa: We re seeing the same trends in Italy linked to an aging population, changes in purchasing behaviours and ubiquitous multimedia communication. In the last area, younger digital natives are instinctively ready to try out new digital solutions, while older categories welcome new technologies because they make their lives simpler. ARE YOU SEEING DIFFERENCES ACCORDING TO THE GEOGRAPHIES WHERE YOU DO BUSINESS? WHAT IMPACT DOES THIS HAVE ON EXPECTATIONS TOWARDS INSURANCE PRODUCTS? P. V. In Italy there s clearly a distinction between large cities and provincial towns. In major urban areas we see more clients with an early adopter profile when it comes to new technologies and multichannel use. Outside these urban hubs, the human component in the customer relationship remains very important, a phenomenon strengthened by a sharper economic slowdown. As for customer expectations, there s greater demand throughout the country for health cover and pension solutions, particularly with guarantees available throughout the contract. L. H. We know that we re all going to live longer. However, the impact will not be the same depending on the degree of solidarity and structures available to support policyholders in the senior part of their lives. In Europe we re already seeing a reduction in state support, and the level of payments and services is increasingly becoming a question of individual responsibility. In Asian nations, customers expect a lot from insurance, which has become a form of support throughout their lives, whereas in Europe people above all want products that are efficient. HOW DO YOU ADAPT YOUR OFFERS AND DISTRIBUTION CHANNELS TO THESE DIFFERENCES? L. H. Internet use is becoming more frequent everywhere, especially in Western Europe and Northern Europe, as well as Asia. BNP Paribas Cardif is developing solutions for secure e-transactions and is able to take action to address e-reputation issues too. In terms of our distribution channels, we are becoming more deeply integrated in the client relationships of our partners, embedding their CRM as far upstream as possible to be able to propose customtailored solutions. P. V. In Italy, even though the penetration of insurance products hasn t attained the same levels as in other major European markets, we re seeing changes in customer attitudes. People pay closer attention to the value of the product in terms of the service delivered, alongside the cover guaranteed. This trend lets us forge much closer relations with the customer. And this means our role as insurer has to stretch from prevention of a claim to reimbursement, which can involve recourse to new technologies like GPS for auto insurance or telemedicine for health protection. WHAT OBJECTIVES HAVE YOU SET IN THIS CONTEXT? P. V. We aim to develop health protection and pension products to meet the new needs of our customers, available via any channel they choose to contact us or our partners. L. H. We ve set objectives to diversify our portfolio of products with a customercentric approach that allows us to forge close relations and anchor loyalty. This will enable to increase its market share wherever they are present. CUSTOMER EXPERIENCE The goal : to optimize the customer experience with a relevant insurance offer, spanning every step in the process: request for information, advice, subscription, payment, claim, tracking of claims payment, changes to a clause, request for information on a current policy, etc. ITALY: BNL CASA E FAMILIA ALL-RISK HOME COVER 33% 100,000 46% IS THE RATE OF INTERNET CONNECTION OF PEOPLE IN THE WORLD Source: Internet world stats, dec HEALTH-RELATED MOBILE APPS IN NORTH AMERICA ALONE Source: BNP Paribas Cardif OF THE WORLD S POPULATION WILL BE UNDER 25 YEARS OLD IN 2012 (VS 17% OVER 55) Source: United Nations, world population prospect qdeveloped with its longstanding banking partner, one of the topperforming products for BNP Paribas Cardif Italy in 2012 was an all-risk home cover product that includes a range of assistance services. In the event of flooding or electrical problems, a 24-hour hotline is available to request a service call. The Casa e Familia product is marketed via BNL s digital channel. Customers can subscribe and purchase the cover online.

9 business model 2012 Fundamental questions bnp paribas CARDIF 16 a 17 Question 04 WHAT IS THE LOGIC BEHIND YOUR PARTNERSHIP-BASED DEVELOPMENT MODEL? François Tritz: A business model based on partnerships reflects a commercial strategy. By building strong ties with the financing arms of automakers like Renault and Volkswagen, we commit to providing them with products adapted to the needs and expectations of their customers and optimize the way they distribute our products. And we thus benefit from their distribution power. Florence Bourgois: In the retail sector, our model consists in helping our partners market products that complement their core offer, such as extended warranties, or income protection. Here, we need expertise in all the issues our partners face in terms of distribution, customer loyalty and capturing traffic. Plus, we have to listen closely to their customers. WHY ARE PARTNERSHIPS THE PILLAR OF YOUR BUSINESS DEVELOPMENT MODEL? HAS DEVELOPED THANKS TO AN INNOVATIVE BUSINESS MODEL, WORKING WITH A NETWORK OF PARTNERS BANKS, RETAILERS, AUTOMAKER CREDIT UNITS, ETC. WHO DISTRIBUTE ITS INSURANCE PRODUCTS AROUND THE WORLD, REACHING CUSTOMERS WHEREVER THEY NEED INSURANCE. Our business model takes a white label approach to serving our partners. FRANÇOIS TRITZ, AUTOMOtive MARKET DIRECTOR, Pascal Perrier: In bancassurance, the strength of our business model is that we can assist our partners in expanding their banking offer with our insurance solutions. We bring them a quality offering in terms of products, optimized distribution and customer knowledge, contributing tangible value-added for them. This model is valid everywhere, whether it s a very mature branch banking network in Italy with our historic partner BNL, or in Poland and Ukraine, where our banking partners are still developing. DOES THIS LET YOU DIVERSIFY YOUR SALES OPPORTUNITIES? F. B. Retail consumption trends are evolving at a fast pace, and these changes all create diversification opportunities. In Europe and Latin America alike, our major retail partners have seen a drop in traffic in very large stores as people turn to local stores. This leads us to examine new opportunities to market our products in smaller outlets where staff might not have as much time. F. T. All our auto manufacturer partners by nature have very diverse needs. Creditor insurance is a standard and necessary product, but it s not enough for the end customers, who have expectations in terms of extended warranty, property insurance, individual protection or roadside assistance. Our task is to find ways to use our insurance cover to create loyal links between policyholders, the brand and the distribution network. P. P. The bancassurance model built by BNP Paribas Cardif over We share with our partners the vast expertise we ve acquired in the retail sector in 20 countries and over 40 partnerships. FLORENCE BOURGOIS, retail MARKET DIRECTOR, the years with the retail and private banking networks of the BNP Paribas group and replicated with other partners has let us multiply sales opportunities. As we know more about customers and their expectations we make it easy for them to interact with us at any time. WHAT TYPE OF EXPERTISE DO YOU PROVIDE FOR YOUR PARTNERS? P. P. Our long standing bancassurance experience with legacy partners lets us deploy the complete bancassurance value chain and best practices wherever Towergate (United Kingdom): major brokers join BNP Paribas Cardif BNP Paribas Cardif has welcomed a new category of partners, large brokers who benefit from privileged access to certain distribution networks and our potential customer franchise. A first emblematic partnership has been forged in the United Kingdom with Towergate, for which we aim to be a prime source of home insurance. In 2012 Towergate sold over two billion euros in premiums for insurers, making it the leading independent insurance intermediary in Europe. Volkswagen Financial Services (Brazil): leveraging best practices After ten years of partnership with Volkswagen Financial Services, in 2012, VWFS Brazil became one of the Top 3 contributors to BNP Paribas Cardif gross written premiums. This performance reflects a buoyant local automobile market, which grew 5% in volume in It also reflects the success of effective competitive benchmarking of best practices in marketing, customer value, product offers and sales simulations. Türk Ekonomi Bank (TEB): BNP Paribas Cardif s exclusive partner in Turkey BNP Paribas Cardif has been active in Turkey since 2007, becoming a major player in life and non-life insurance and pension products marketed through its legacy banking partner TEB. The bank became the exclusive partner of BNP Paribas Cardif in 2012 following the merger of TEB and Fortis, a subsidiary of BNP Paribas. the bank is present. In Turkey we were able to rapidly serve the TEB retail network and its 550 branches in the country. F. T. With Volkswagen Financial Services, our largest global partner after Cetelem, we did a detailed analysis of the performance and best practices for distribution of insurance products on the market. This has let us enhance our commercial performance and add value for the end customer. Our complementary fit with BNP Paribas guarantees massive distribution reach, covering millions of potential customers. PASCAL PERRIER, BANCASSURANCE MARKET DIRECTOR, F. B. With BNP Paribas Cardif marketing teams we track changes in consumer purchasing behaviours. In 2012 we thus revamped our range of insurance for electronic goods, proposing new products for our partners aligned with different customer profiles. listen PASCAL PERRIER interview on french BANCASSURANCE

10 business model 2012 Fundamental questions bnp paribas CARDIF 18 a 19 Question 05 HOW DO YOU WORK WITH YOUR PARTNERS? what has made evolve your partners expectations? Pierre-Olivier Brassart: In most mature markets, business in our partners different sectors generally declined in volume and margins were flat. As a result, something that might have been secondary to them in the past, developing additional insurance offers, has now become essential. Given their close relations with customers, they expect more from our insurance products, more advice on how to propose them to potential customers at the optimal sales opportunity. For BNP Paribas Cardif, this demand for innovation in the insurance market is synonymous with opportunities to be seized. WORKING CLOSELY WITH PARTNERS ENSURES THAT APPLIES INTIMATE KNOWLEDGE OF THEIR METHODS AND THEIR CUSTOMERS. THIS IS THE BEST WAY TO BRING THEM SOLUTIONS THAT ARE FULLY EMBEDDED IN THEIR SALES PROCESSES. HOW DO YOUR PARTNERS PERCEIVE THESE CUSTOMER EXPECTATIONS? P.-O. B. They ve all understood that their customers are increasingly well-informed, and also less royal. They are free to decide how and when they want to engage with a brand. Customers everywhere are using multiple channels, and our partners need to adapt. Consequently, distributors want to know more about their customers experience and their profile. This knowledge lets them propose solutions matched to their appetite for insurance. We are fully conversant with these trends and in France, for example, we worked with one of our biggest partners starting in 2012 to segment and target our clientele databases in order to propose precisely targeted insurance products. DOES THIS HELP YOU WORK MORE EFFICIENTLY TOGETHER? P.-O. B. Our partners rely on our support to expand their expertise in marketing new insurance products. By sharing a precise analysis of distribution with them, we can better identify ways we can together more effectively engage with potential customers. For BNP Paribas Cardif, improving the insurance service experience for the customer means selling effective cover to people who need it and who understand what our partner is offering them. This also means correcting aspects that might not be clear. For example, our reporting data shows that customers think they are covered for risks when they actually are not. So we need to clarify information at every stage to improve understanding of the policy. We re working to do this everywhere where we operate. Studies in markets around the world show growing demand for protection insurance. Customers want solutions adapted to their needs. This means we need to make them available through the appropriate distribution channels. PIERRE-OLIVIER BRASSART, SENIOR INSURER GLOBAL PARTNERS, listen our testimonies let s talk about insurance DISTRIBUTION WHAT OUR PARTNERS ARE SAYING WULF HARTRAMPF, MANAGING DIRECTOR, VOLKSWAGEN VERSICHERUNG WHAT DO YOU DO FOR YOUR CUSTOMERS? Wulf Hartrampf : The satisfaction of our customers and dealerships is very important to us. In reality, our dealerships are our main distribution channel. Only the delivery of good performances will allow us to achieve the very ambitious sales targets we have set ourselves at global level. HOW DOES BNP PARIBAS CARDIF HELP YOU IN ACHIEVING YOUR TARGETS? W. H It provides us with a great deal of support by responding directly to what dealerships want by offering innovative products that are tailormade for our needs. This approach to sales is really effective, because the dealership satisfaction rubs off directly on customers, and therefore generates customer satisfaction. In recent years, we have built close links with BNP Paribas Cardif in 16 countries. BNP Paribas Cardif is the only insurer to discuss innovation with its customers And that s exactly what we expect from a partner. Together, we have achieved results that continue to improve significantly. This positive outcome is due to the commitment not only of its management, but also of everyone in the company. HOW DOES BNP PARIBAS CARDIF DIFFER FROM YOUR OTHER PARTNERS? W. H The BNP Paribas Cardif philosophy comes through in its determination to build a special partnership-based relationship where the focus is always on quality. It s also about the company s commitment to continual innovation in our market, which helps us to stand out from our competitors as a distinctive player. This approach dovetails perfectly with the way we operate at Volkswagen Financial Services. That s why we are so happy to have found in BNP Paribas Cardif a partner that thinks and acts just like we do.

11 businesses 2012 Fundamental questions businesses bnp paribas CARDIF 20 a 21 Question 06 CONCRETELY, HOW DO YOU PROTECT US? HAS LONG BEEN A LEADER IN CREDITOR INSURANCE. TODAY THE COMPANY IS EXPANDING INTO NEW MARKETS BY OFFERING PRODUCTS TO INSURE PERSONAL PROPERTY AND HEALTH. JEAN-PIERRE DIAZ, DIRECTOR OF SAVINGS AND PROTECTION PRODUCTS, FRANCE WHAT DOES INSURING PEOPLE AND WHAT IS DEAR TO THEM MEAN? Jean-Pierre Diaz : The concept of insurance protection is admittedly a bit vague for customers. Protecting people and what is dear to them means insuring policyholders and their families against adverse events. This ranges from our historic business of creditor insurance, where for example in the event of the death of the policyholder, we reimburse part or all of the credit. Likewise, if people are unable to work for health reasons, we cover their monthly credit payments. HOW HAVE YOU ANTICIPATED CHANGING NEEDS TO EXPAND YOUR RANGE? J.-P. D. Recent regulatory changes in France and other countries applicable to creditor insurance introduce greater rights and freedom with regards to cover for credits. Our offer must adapt to this increasingly competitive environment and we need to anticipate future trends. At the same time, we ve identified new growth outlets to offset the drop NEW OFFERS IN 2012 q Sahti: Marketed in Algeria by Cardif El Djazaïr, this health cover pays a set amount if the policyholder is diagnosed with a serious illness, and provides per diem allowances for hospital stays. q Medex: Introduced in Sweden in partnership with Swedbank, this health insurance in credit volumes in mature markets. That s why BNP Paribas Cardif recently entered the individual protection segment, particularly health insurance and income protection. WHAT EXACTLY DO YOUR NEW PRODUCTS COVER? J.-P. D. We propose health cover to guarantee reimbursement of medical expenses, supplementing reimbursements by public health insurance schemes, as in France. But we also go further, taking into account new customer behaviours, reimbursing alternative medicine treatments, for example. In property insurance, we also offer products aligned to today s lifestyles. Our policies cover nomadic multimedia devices against the risk of theft or damage mobile phones, tablets, music players, cameras, etc. This new family of so-called affinity insurance also includes extended warranties for household appliances, as well as computers and electronics, or automobiles, for example. now covers 30,000 policyholders thanks to competitive premiums in this market. q Cardif Liberté Emprunteur: In France, this new individual mortgage insurance policy features more guarantees and innovative options, with revised exclusions and lower rates. WHAT DO YOU DO WITH OUR SAVINGS? TO HELP THEM ACHIEVE THEIR GOALS OR SECURE THEIR LIVES AGAINST EVERYDAY RISKS, WHAT DO YOUR CUSTOMERS EXPECT IN TERMS OF SAVINGS SOLUTIONS? Hervé Cazade : Customers want security, performance and personalized solutions. Diversified products are the only life insurance contracts that meet all three of these expectations. When the contract reaches its term, customers know that they will at minimum recover the initial amounts invested. They can decide on the term and the distribution of assets. Lastly, they know they have exposure to a potential yield that s greater than a conventional general fund instrument thanks to more dynamic allocation of longterm assets. With this type of contract, clients also have access to innovative services and options: greater guarantees, Question 07 INDIVIDUAL SAVINGS, LIFE INSURANCE, COLLECTIVE SAVINGS AND RETIREMENT SAVINGS ARE ALL SOLUTIONS THAT HELP INDIVIDUALS ACHIEVE THEIR GOALS OR PROVIDE FINANCING FOR THE REAL ECONOMY. enabling them to lock in gains realized, a loyalty bonus awarded from the fourth year, plus supplementary death cover, which protects the client s savings up to a million euros in unrealized losses. Thanks to its range of diversified products, especially life insurance, BNP Paribas Cardif is No. 2 in the bancassurance market in Taiwan. POLLY WANG, CEO OF CARDIF TAIWAN DO YOU REALLY USE THE FUNDS YOU COLLECT FROM CUSTOMERS TO FINANCE THE ECONOMY? H. C. Absolutely. Life insurance companies play an important role as long-term investors. This means that the savings our clients entrust us with contribute to financing both governments and businesses. BNP Paribas Cardif is also providing more financing for French companies via the FSP (Fonds Stratégique de Participation) investment fund and the creation of BNP Paribas France Credit, a fund that invests mainly in mid-cap companies. THE FINANCIAL CRISIS HAS SLOWED ECONOMIC GROWTH. HAS THIS IMPACTED YOUR BUSINESS? H. C. BNP Paribas Cardif has always been prudent. This approach enabled us to retain our clients during the turbulence of the crisis. We have nevertheless seen a slowdown in the life insurance market. Despite this, BNP Paribas Cardif proved resilient, since our gross written premiums in France declined just 2%, compared with a general market decline of 8% in HERVÉ CAZADE, head of distribution and commercial development FRANCE see how FINANCES THE REAL ECONOMY

12 CLient MArKetinG 2012 Fundamental questions bnp paribas CardiF 22 a 23 WHAT DOES PUTTING CUSTOMERS AT THE HEART OF OUR PRIORITIES MEAN FOR YOU? Tatjana Tschacher: For a long time we focused primarily on the insurance products we provided for our partners. Now we have a much stronger focus on the end consumer. Also, we recognize that these customers resort to an increasingly diverse range of channels to find information and compare products before making their purchase decision. It s precisely at this decisive moment that we need to be seen as the best choice. The key to doing this is to create products that precisely meet their needs and expectations. HOW DO YOUR PARTNERS POSITION THIS RELATIONSHIP WITH CUSTOMERS? T. T. Only good insurance products, meaning products that customers perceive as truly useful, will be successfully marketed by our partners. These are products that Question 08 ARE YOUR CLIENTS SATISFIED WITH THE PRODUCTS YOU OFFER? CHAnGinG the PerCePtion PeoPLe HAVe of insurance is CritiCALLY important For BnP PAriBAs CArDiF. and the best WaY to reconfirm the utility and legitimacy of insurance is to precisely determine the needs of different Clientele profiles. this is Fundamental to CollaboratinG WitH partners to design offers that incite Customers to subscribe insurance CoVeraGe. customers will retain and renew. This is why the first stage in our product development process involves indepth analysis to identify exactly what our customers want and how we can meet these needs. This approach is equally important for our partners, who also put their customers at the center of their priorities. To do this you first need a sound upstream understanding of how people envision the future, depending on their personal situation and the socioeconomic situation in their country, before they buy insurance. Our marketing teams at the head office and at the country level have developed a structured methodology based on different tools to effectively identify the actual needs of customers and then apply this knowledge to design the appropriate insurance products. HOW DO YOU IDENTIFY NEW CUSTOMER NEEDS? T. T. In Germany, for example, we work with specialists who The insurance offers we design make a concrete contribution to helping people improve the quality of life for themselves and their family. TATJANA TSCHACHER, DIRECTOR MARKETING AND COMMUNICATION, IN GERMANY analyze international trends in consumer behavior, as well as product innovations and the specific needs of the local market. Since we re present in numerous countries, we re able to consistently identify trends in the insurance market, then analyze them and share information with our different teams around the world. So we benefit from a vast network able to gather information concerning these issues in our different countries. In South Korea, for instance, studies show that for the majority of the population, the decision to purchase an insurance product is at least half the time motivated by the need to prepare for retirement. (see box). HOW DO THESE NEW FACTORS CHANGE YOUR PRODUCT PORTFOLIO AND THE WAY YOUR TEAMS ARE ORGANIZED? T. T. The information we gain from market and consumer analyses mainly impacts the 64% OF KOREANS PREFER NAME BRAND INSURANCE PRODUCTS Source: BNP Paribas Cardif way we develop new products. Right from the start of the design phase it s important to really know the market and identify the expectations of individuals. If we have accurately determined the needs of potential customers we can create the products that interest them. That s why it s in our interest, through our partners, to promote products that deliver more added value for end customers than those available from competing insurers. HOW EXACTLY DO YOU TARGET YOUR OFFERS? T. T. BNP Paribas Cardif has a powerful client segmentation tool that lets us optimize the design of new products, as well as the way the products are marketed. This lets us obtain very detailed information on the needs and expectations of specific customer categories. For example, these analyses show that customers generally want more benefits, contracts with fewer exclusions and terms that are clearer and easier to understand. Other applications let us select a specific client segmentation and analyze attitudes and appetite for life insurance, health protection or any other area of property of personal insurance. These findings go into a database that serves directly for designing future offers. In Turkey, we were able to get our longstanding distribution partner bank, TEB, on board right from the start to promote an education savings product. The same is true in Japan, where our Juvenile Education offer is perceived as simple and innovative. In Italy, our partner BNL very rapidly gave the green light to our new income protection product, reflecting the difficulties Italian households face in managing their budgets. SOUTH KOREA: PRIORITY ON HEALTH AND RETIREMENT South Korea has experienced 30 years of bright economic development and the population will begin to age, starting in the next decade. This demographic trend is expected to encourage Koreans to look more closely on insuring their health and preparing for retirement. At the same time, use of digital media has exploded, and this has a major impact on the channel as younger generations prefer to find information and purchase insurance on line. In 2012, these findings led us to join our long term partner in South Korea, Shinhan Bank, to introduce long-term health cover for the risk of cancer, a sensitive issue among Koreans. Available via Internet, this offer targets all the age bracket, a generation that intends to anticipate health and retirement issues.

13 MArKets 2012 Fundamental questions bnp paribas CardiF 24 a 25 Question 09 WHAT ARE THE COUNTRIES THAT HAVE DELIVERED THE MOST ROBUST GROWTH AND HAVE THE BEST OUTLOOK? BnP PAriBAs CArDiF ContinueD its GroWtH itinerary in 2012 despite the Crisis Climate and Flat results in its legacy domestic markets. this performance is thanks to a strategy that Has proven successful For a decade, anchored in robust international development, WitH an emphasis on emerging markets. IN LATIN AMERICA, HAS 214 DISTRIBUTION PARTNERS* IN EUROPE, 16 In 2020 MULTI-COUNTRY PARTNERS REPRESENT MORE THAN HALF OF OUR BUSINESS* 40% OF THE WORLD S MIDDLE CLASS WILL LIVE IN ASIA * Source: BNP Paribas Cardif WHAT IS YOUR ASSESSMENT OF YOUR 2012 PERFORMANCE IN YOUR RESPECTIVE GEOGRAPHIES? Pier-Paolo Dipaola: In continental Europe, certain countries like Poland and Germany escaped the crisis and continued to drive growth, unlike the Iberian peninsula. At the same time, the Czech Republic and Slovakia, both bordering Germany, benefited from their neighbour s robust economy, whereas the economies of Romania and Croatia were both depressed. Xavier Guilmineau: Despite the current economic context, Asia continues to see high growth. Through strategic alliances with major banks in the main markets India, Japan, South Korea, Taiwan, Thailand and Vietnam we re able to take advantage of this dynamic development. Our partnerships give us access to a potential customer franchise of 200 million people of whom we currently serve around 8%. So our growth outlook is excellent. Francisco Valenzuela: Like Asia, most of the countries in Latin America seem to have escaped the economic crisis. BNP Paribas Cardif covers six countries in South and Central America Mexico, Peru, Colombia, Brazil, Argentina and Chile. We re present in a variety of distribution channels with a mix of telemarketing, points of sale, ATM machines and digital, working with partner banks and retailers and even several state agencies. ASIA AND LATIN AMERICA ARE BOTH STRONG GROWTH MARKETS FOR THE COMPANY. WHY? X. G. In the next ten years, 35% of global development in life insurance will come from Asia in particular. Given this explosion of middle class demographics, BNP Paribas Cardif is a power lever for the BNP Paribas Group to capture this growth. To build out our current organization we are expanding in distribution as we adapt to changing customer practices in terms of multichannel access and extending our presence in non-banking sectors. F. V. Latin America counts several countries where insurance continues to enjoy steady growth, starting with Brazil and its seemingly irrepressible expansion. Each time BNP Paribas Cardif is ready to tap this growth and expand our market share. We re already the leader in bancassurance in Argentina, Brazil, Colombia and Chile. P.-P. D. In a challenging market in Europe, we aim to maintain a positive trend by evolving our business model in terms of products and distribution. In 2012 we systematically reviewed our products to provide greater cover, fewer exclusions, and make the policies simpler. We also significantly expanded our offers beyond conventional creditor insurance with extended warranties and health care. In distribution, we re increasingly supporting our partners in all their distribution channels, from face-toface to phone to the Web. GIVE US SOME EXAMPLES OF HOW CHANGING. P.-P. D. In Europe and increasingly on other continents, we re supporting many partners who see our multi-country reach as an advantage, coupled with our capacity for diversification and innovation. With Volkswagen Financial Services, for example, we Russia: Sberbank, a promising partnership Russia has not been impacted by the crisis. Thanks to a steady revenue stream from oil and gas, the country s GDP has risen and the partnership formed in 2009 between BNP Paribas Cardif and Sberbank, Russia s largest lender, has continued. In a regulatory framework inspired by the European model, 2012 saw the creation of the Sberbank insurance subsidiary, which has drawn on expertise from BNP Paribas Cardif in savings and protection. Turkey: telemarketing channel drives 100% growth A partnership formed in 2012 between Yapi Kredi Life & Pension (a subsidiary of UniCredit) and BNP Paribas Cardif Turkey posted 30% growth in its individual protection and savings businesses. BNP Paribas Cardif s multichannel expertise enabled the venture to significantly boost the efficiency of its fast-growing telemarketing platform. Germany: diversified partnership portfolio In a country that has been largely unaffected by unemployment, BNP Paribas Cardif Germany works with a broad range of partners: banks, consumer credit firms, including a close partnership with BNP Paribas Personal Finance, as well as the financing units of automakers. The unit s contribution will help double BNP Paribas revenues in Germany by recently introduced a warranty extension product in Poland and a Continue Driving offer in Spain. This is a good start towards our objective of being the benchmark in insurance partnerships. X. G. Three years ago we formed TCB Life, a life insurance joint venture with Taiwan Cooperative Bank (TCB), the second-largest bank in Taiwan. Supported by BNP Paribas Cardif, TCB has transitioned from a conventional single product bancassurance model to a diversified range of products sold in bank branches and via telemarketing. In just a few years TCB Life has become a heavyweight in the sector with leadership positions in unit-linked and creditor insurance. F. V. We fine-tuned several of our best practices in 2012, a multichannel partnership with French retail group Carrefour in Brazil and Argentina. We replicated this model in Colombia with Grupo Aval. PIER-PAOLO DIPAOLA DIRECTOR, WESTERN, EUROPE XAVIER GUILMINEAU DIRECTOR,, ASIA FRANCISCO VALENZUELA DIRECTOR,, LATIN AMERICA

14 DIGITAL 2012 Fundamental questions bnp paribas CARDIF 26 a 27 Question 10 WHAT DO YOU MEAN WHEN YOU SAY YOU AIM TO BE A DIGITAL INSURER? DIGITAL CHANNELS HAVE TOTALLY REDEFINED RELATIONSHIPS BETWEEN CONSUMERS AND BRANDs, BRINGING NEW TECHNOLOGIES, NEW USES AND NEW EXPECTATIONS. IS EMBRACING THESE CHANGES, ADAPTING TO MAKE DIGITAL A STRATEGIC GROWTH PRIORITY IN THE YEARS AHEAD will consolidate your digitalization, WHAT about 2012? Gregory Desfosses: We saw very positive progress in 2012, completing the first stage in the digital strategy we initiated in This strategy covers three areas: providing digital services for our partners, launching white brand initiatives, and driving innovations in products and distribution. We ve introduced digital business processes in seven countries during the past three years, most recently South Korea. Our three main regions Europe, Asia and Latin America are all now on the same digital page. In France, a very mature market, BNP Paribas Cardif developed a digital channel alongside existing channels. In Brazil we see very promising opportunities to accelerate our growth using digital solutions. And in South Korea, the most digital country in the world, this channel is a must for any business that aiming for continued growth. WHAT TYPES OF NEW USES HAVE YOU IDENTIFIED FOR the CUSTOMERS? G. D. Digital lets us create a direct, real-time relationship with the customers. There s more and more data circulating faster and faster, allowing us to better identify expectations and propose truly tailored responses. Digital thus brings us closer to the customers in order to better serve them. And these closer links are amplified by the rising use of mobile phones. WHAT ABOUT YOUR OFFERS ON MOBILES AND TABLETS, AND WHAT ARE YOU DOING ON SOCIAL NETWORKS? G. D. Thanks to our digital expertise, BNP Paribas Cardif The Internet in Asia is strongly centred on the social dimension. Usage has been energized by social networks, whereas in the West it ramped up with search engines. is able to support its partners as they roll out their own multichannel solutions. We re moving forward in international markets with a host of initiatives that leverage these new resources, including social media. Tablets have also emerged as a powerful tool, embedding digital right at the point of sale. In India we ve run a successful trial with our partner SBI Life to equip 70,000 agents to market our products in the country. Similarly, in Belgium our brokers can show rate simulations to potential customers on smartphones or tables. We re present on social networks too, where we answer customer questions and dialogue with our partners. Turkey is very advanced in this area. The potential of social networks to deepen dialogue with customers is huge. WHAT ABOUT YOUR PLANS TO CREATE THE CARDIF.FR ONLINE INSURANCE STORE? G. D. The Cardif.fr store reflects a natural evolution of a distribution model that s aligned with new policyholder behaviour. The Web is above all a platform for information. When people want information on an insurance solution they naturally contact an insurance company. This showcase lets people discover BNP Paribas Cardif, our expertise, our products and our services. They will also be able to purchase insurance online with electronic signature, although the majority ultimately prefer to finalize the purchase by phone or in a branch office. In this case they can easily contact our partners. Out of France, similar approaches are deployed in the United Kingdom and the Netherlands. GRÉGORY DESFOSSES, DIRECTOR DIGITAL CHANNEL, Join us on FACEBOOK ELECTRONIC SIGNATURE: CUSTOMER-DRIVEN COLLABORATION Digital development encompasses the entire company, illustrated by our multi-disciplinary project to provide a secure electronic signature solution*. Putting this technological innovation online, with its health offer notably, lets BNP Paribas Cardif gain in performance in serving Web customers. This development is perfectly aligned with their expectations for immediacy and paperless relations. Online policy subscription with secure payment using electronic signatures was introduced in 2012 in the Netherlands. * A collaborative project spanning Legal, Marketing and IT teams. SOCIAL NETWORKS: A BILLION POTENTIAL CUSTOMERS, JUST A CLICK AWAY! A business that ignores the power of social networks would be turning its back on a billion people*, all contactable in a single click BNP Paribas Cardif is currently present on the majority of the planet s major social networks: Facebook, Google+, Twitter, Pinterest, Linkedin, etc. The company is very active on these platforms while paying close attention to its e-reputation. * Facebook audience in infrastructures lead THE EMERGENCE OF THE DIGITAL ENTERPRISE Digital is transforming BNP Paribas Cardif at every level of the organization. The Efficiency, Technology and Operations (ETO) unit has launched a vast overhaul of technical infrastructures and applications across the company. It has also deployed teams to trial new concepts within the framework of a full-fledged concept lab. The objective is to lay the foundations for a digital enterprise. 60% OF THE BANKING RELATIONSHIP IN ASIA IS VIA A MOBILE PHONE, COMPARED WITH 50% IN EUROPE AND ALREADY 40% IN LATIN AMERICA. SMARTPHONES ARE THUS A KEY PLATFORM Source: BNP Paribas Cardif

15 INNOVATION 2012 Fundamental questions INDUSTRIAL PROCESSES bnp paribas CARDIF 28 a 29 Question 11 Question 12 WHAT KIND OF INNOVATION DO YOU BRING TO INSURANCE? WITH THE CHANGES THAT HAVE ALREADY REDEFINED THE WAY WE DESIGN AND SELL OUR PRODUCTS, CULTIVATING INNOVATION IS CRITICAL TO MAINTAIN OUR COMPETITIVE ADVANTAGE. WHAT ARE THE PRIORITIES FOR INNOVATION IN THE INSURANCE INDUSTRY? Cristina Cislaghi: If you asked the people of BNP Paribas Cardif what innovation means you d be surprised at their answers a management principle, a structured community and more. Because innovation is about all this at an insurance company. Being the insurer for a changing world means that we must address the increasingly demanding expectations of our customers with our partners, taking into account new consumption trends. We also need to integrate new regulations and work more simply and efficiently while further optimizing our risk management. It would be impossible to meet challenges like these without a robust, enterprise-wide culture of innovation and creativity. Concretely, the best way to do this is to encourage everyone across the organization to express their talent for innovation, to reward risk taking and to train people in using new tools, among other things. DOES THAT MEAN YOU RE ALREADY INVENTING THE PRODUCTS AND SERVICES OF TOMORROW? C. C. We ve really embraced the challenge of innovation by working every day to rethink the processes behind the marketing and development of our products and services. We began with very simple questions: What will the profile of tomorrow s customers be? What solutions will we market them? Through what channels? These are the basic starting points. Digital will be central to the future of our insurance products, but it isn t the only factor. We also need to adapt our offer to the future consumption environment that is already emerging, identifying the new risks of contemporary life and design new products and services to cover them. And the only way to meet the challenge of innovation is to draw on the creative potential of all the stakeholders insurers, distribution partners, the consumers who purchase insurance products, and of course the company s people. TECHNOLOGIES SHARPEN THE RELEVANCE OF INSURANCE SOLUTIONS Innovation irrigates all BNP Paribas Cardif distribution channels, starting with the digital domain. In 2012, BNP Paribas Cardif in Brazil ran a trial using speedometer apps on new-generation smartphones to analyze the driving style of a panel of drivers. The goal is to propose car cover adapted to the way they use their vehicles. Another example is analysis of cybercrime and identity theft to develop specific insurance cover. BNP Paribas Cardif Italy capitalizes on the diversity of our talents and skills. CRISTINA CISLAGHI, DIRECTOR OF COMMUNICATION, in ITALY YOU MARKET INSURANCE COVER, BUT WHAT ABOUT THE RELATED SERVICES? PUTTING THE CUSTOMER AT THE HEART OF OUR PRIORITIES ALSO MEANS PROVIDING IMPECCABLE SERVICE QUALITY TO GUARANTEE HIGH LEVELS OF SATISFACTION. HOW DO INDUSTRIAL PROCESSES ADD VALUE FOR YOUR PARTNERS AND THEIR CUSTOMERS, HELPING YOU INCREASE END CUSTOMER SATISFACTION? Marieke Van Zuien: Customer satisfaction is a key lever in operational efficiency developed through our Efficiency, Technology and Operations (ETO) organization. The goal is to make BNP Paribas Cardif a customer-centric insurance partner able to deliver proven industrial processes. Currently we re accelerating the optimization of the policyholder experience. People need to be able to choose when, where and how they do business with us thanks to a clear and easy to use process. HOW DO YOU MANAGE THE AFTER-SALES COMPONENT OF AN INSURANCE POLICY? M. Van Z. We believe the customer experience needs to increasingly become a series of moments of truth. Today people do not just want good quality products at fair prices, they also want their policy to change as their needs change. The best way to make this happen is to solicit customer feedback throughout the duration of the contract, right from the subscription and then in the event of a claim or a change to the policy. We have to continually take customer feedback into account to measure their satisfaction. HOW DOES THIS MAKE LIFE SIMPLER FOR YOUR CUSTOMERS? M. Van Z. We ve taken considerable steps to design our products so they are as clear as possible. For example, we completely rewrote the sales terms and conditions for our insurance policies. The goal is to make the coverage easier to understand and make sure the customer knows exactly what to expect. Digitizing our processes supports this approach by providing broader access to our services, whether it s for submitting a claim, requesting a copy of the insurance policy or clicking on a call-me-back button on a website. Each quarter, we invite a panel our clients to contribute input for the creation of new offerts through the Board Of Cardif Customers (BOC). MARIEKE VAN ZUIEN, DIRECTOR CLIENTS & CORPORATE, in the NETHERLANDS

16 2012 Fundamental questions bnp paribas CARDIF 30 a 31 Our locations LATIN AMERICA Argentina Gustavo Cicinelli Av. Alicia Moreau de Justo, 170, Piso Capital Federal Buenos Aires Tel: bnpparibascardif.com.ar BRAZIL Adriano Romano Rua Campos Bicudo 98 4 andar Sao Paulo SP Tel: bnpparibascardif.com.br Chile Alessandro Deodato Vitacura 2670 Piso 13, Las Condes, Santiago Tel: bnpparibascardif.com.cl ColombiA Jorge Hernandez Calle 113 No 7 80 Torre Ar Piso 11, Bogota Tel: bnpparibascardif.com.co MexiCO Claudio Orellana Paseo de las Palmas 425, Piso 5, Lomas de Chapultepec, Mexico, D.F. Tel: bnpparibascardif.com.mx PEru Daniel Weis Avenida Canaval y Moreyra 380, Piso 11, San Isidro, Lima 27 Tel: bnpparibascardif.com.pe AsiA ZONES ChinA* Allan Lam Unit 2611, 26F Shanghai World Financial Center, N 100, Century Avenue, Pudong, Shanghai Tel: IndIA Atanu Sen SBI Life**, Natraj Building, MV Road & Western Express Highway Junction, Mumbai Tel: sbilife.co.in JapAn Yasunori Kume 9 th Floor Infoss Tower, 20-1 Sakuragaoka-cho, Shibuya-ku, Tokyo Tel: cardif.co.jp SOUTH KOREA Jean-Christophe Darbes Bnp Paribas Cardif Life Insurance** 4F, Seoul City Tower, 581, 5Ga Namdaemun-Ro, Jung-Gu, Seoul , Tel: cardif.co.kr TAIWAN Polly Wang TCB Life** 18 th Floor, No 270, Chung Hsiao E. Rd, Sec.4, 106 Taipei Tel: tcb-life.com.tw THAILAND Sirinthip Chotithamaporn Thai Cardif life assurance** 36/ /59-62 PS Tower, 13 th and 18 th floor, Sukhumvit 21 (Asoke) Road, North Klongtoey, Wattana, Bangkok Tel: thaicardif.com Vietnam Tran Ba Phuoc VCLI ** 11 th floor, Capital Tower, 109 Tran Hung Dao street, Hoan Kiem district, Hanoi Tel: vcli.vn * Representative Office ** Joint-ventures LATIN AMERICA Francisco Valenzuela Vitacura 2670 Piso 14 - Las Condes Santiago Del Chile Chili Tel: AsiA Xavier Guilmineau 23/F Three Exchange Square 8 Connaught Place, Central Hong Kong Tel: europe ALGERIA Hervé Giraudon 57, rue Abri Arezki, Hydra, Alger Tel: AUSTRIA Florian Wally Rotenturmstrasse A-1010 Vienna Tel: bnpparibascardif.at BELGIUM Christophe De Longueville Chaussée de Mons, 1424, 1070 Anderlecht Tel: bnpparibascardif.be BULGARIA Mario Kostov 29 A Hristo Belchev str 1 st, 3 rd floor, Sofia 1000 Tel: bnpparibascardif.bg CROATIA Ana Ivancic Ivana Lucica 2a Zagreb Tel: bnpparibascardif.hr CZECH REPUBLIC Tomas Kadlec Na Rybnicku 1329/5, Prague 2 Tel: cardif.cz DENMARK Jorgen Seligmann Bredgade 56, Copenhagen Tel: FrancE Virginie Korniloff 8, rue du Port Nanterre Cedex Tel: + 33 (0) bnpparibascardif.com belgium, NETHERLANDS Nadège Gaspard 8 rue du Port Nanterre Cedex France Tel : Central Europe Zdenek Jaros Na Rybnicku 1329/5, Prague 2 Czech Republic Tel : GERMANY David Furtwängler Friolzheimer Strasse 6D Stuttgart Tel: bnpparibascardif.de HUNGARY Fabrice Pomiers Korhaz u, 6-12, H Budapest Tel: /2 bnpparibascardif.hu ITALY Isabella Fumagalli Via Tolmezzo, 15 D Palazzo Milan Tel: cardif.it Luxembourg Fabrice Bagne avenue de la porte neuve L-2227 Luxembourg Tel: cardifluxvie.lu NETHERLANDS Cees de Jong Hoevestein 28, 4903 SC Oosterhout Tel: bnpparibascardif.nl NORWAY Dag Mevold Munkedamsveien 35, 0250 Oslo Tel: cardif.no POLAND Jan-Emeryk Rosciszewski Pl. Pilsudskiego 2, Varsovie Tel: cardif.pl Portugal Miguel Ribeiro Av. 5 de Outubro, N Piso, Lisbonne Tel: cardif.pt Continental Europe Pierpaolo Dipaola 8 rue du Port Nanterre Cedex France Tel : NORTHERN Europe & EMERGING MARKETS Alexandre Draznieks 8 rue du Port Nanterre Cedex France Tel : ROMANIA Carmen Bahrim Banul Antonache street, 1 st floor, District 1, Bucarest Tel: bnpparibascardif.ro RussiA Konstantin Kozlov UI. Timiryazevskaya 1, Moscou Tel: bnpparibascardif.ru SLOVAKIA Peter Dudak Poist ovna Cardif Slovakia, a.s., Plynarenska 7/C, Bratislava, Tel: bnpparibascardif.sk SPAIN Alexandre Boccia Calle Ribera Del Loira, 28 4a Planta Madrid Tel: bnpparibascardif.es SWEDEN Jan De Geer Mölndalsvägen 93, 2 nd floor Goteborg Tel: cardif.se TURKEY Cemal Kismir Meclis-i Mebusan Cadde, No: Findikli-Beyoglu, Istanbul Tel: bnpparibascardif.com.tr UNITED KINGDOM Paul Glen Pinnacle House A1, Barnet Way Borehamwood, Herfordshire WD6 2XX Tel: cardifpinnacle.com Ukraine Oleg Romanenko 8, Illinska Str, Kiev Tel: cardif.com.ua IBERIAN PENINSULA Alexandre Boccia 26 Calle Ribeira Del Loira Madrid Spain Tel :

17 Head Office 1 Boulevard Haussmann Paris France Offices 8 rue du Port Nanterre Cedex France RCS Paris Limited company with capital of 149,959,922.20