TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY INTRODUCTION... 3 What is this report about?... 3

Transcription

1 TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY INTRODUCTION... 3 What is this report about?... 3 Distribution partnerships with banks and other lending institutions constitute the focus of this report... 3 Rationale... 3 Across Europe, over 80% of banking entities surveyed are active in this arena to one extent or another... 3 Methodology... 4 Survey of banks and other lending institutions... 4 Market data... 4 Definitions... 6 Investment-related life insurance... 6 Retirement savings... 6 Risk life insurance... 6 Critical illness insurance... 6 Income protection insurance... 7 Accident insurance... 7 Health / hospital cash plans... 7 Medical expenses insurance... 7 Personal motor insurance... 7 Household insurance... 7 Creditor insurance... 8 Mortgages, consumer finance and credit cards... 8 Weighted provider share of partnerships... 8 Operating models... 9 Abbreviations and exchange rates Finaccord MARKET ANALYSIS Banks and other lending institutions covered Introduction to the banking sector The banking system can be divided according to how banks operate at the national, regional and local level Austrian banks are expected to raise EUR 2.9 billion to meet new capital requirements Investment-related life insurance and retirement savings Insurance market size and growth Austria s market delivered little growth between 2006 and Distribution share of banks Bancassurance provision rates, operating models and partnerships Investment-related life insurance More than two in three banks offer investment-related life insurance in Austria Erste Bank s bancassurance partnership was renewed for another 15 years in The Raiffeisen Bankengruppe has also entered into a long-term strategic relationship Both ERGO and Generali have bought majority stakes in major bancassurance providers in recent years Excluding captive brokers, around 16 competitors work with banks in this market segment Retirement savings The provision rate among banking institutions for retirement savings is slightly lower FINACCORD (11/2011) I

2 ... although the operating models and partnerships are largely the same Performance of key bancassurance underwriters On a combined basis, bancassurers increased their share of total life insurance between 2006 and Protection-related life insurance Insurance market size and growth Austria s market for protection-related life insurance is delivering very little growth Distribution share of banks Bancassurance provision rates, operating models and partnerships Risk life insurance Risk life insurance is most commonly offered through external or joint venture underwriters Oberösterreichische Versicherung acts both as an external and joint venture underwriter Critical illness insurance In conjunction with ACE, American Express markets a critical illness policy focused on cancer Income protection insurance Income protection insurance is quite commonly available from banks in Austria with Raiffeisen Versicherung prominent in terms of its weighted share of partnerships Cardif is unique in having introduced short-term income protection cover A few banks offer income protection insurance in co-operation with joint venture underwriters Performance of key bancassurance underwriters Accident and health insurance Insurance market size and growth Austria s market for accident and health insurance continues to grow at a consistent rate Around 1 million Austrian consumers have acquired supplementary health insurance Distribution share of banks Bancassurance provision rates, operating models and partnerships Accident insurance Insurance covering non-work accidents is available from over two thirds of banks surveyed s Versicherung and Raiffeisen Versicherung are the leading insurers by weighted share of partnerships Counting all types of company, over 20 product providers compete for bank mandates in this sector including several joint ventures in which the banking partners are likely to divest their shares Entities with no scheme are mainly smaller banks and specialised lenders Medical expenses insurance Generali and its Drei-Banken Versicherungs joint venture are the leading providers by weighted share Health / hospital cash plans Just one banking entity among those researched offers a stand-alone hospital cash plan Performance of key bancassurance underwriters The main bancassurers increased their share of accident insurance between 2006 and Personal motor and household insurance Insurance market size and growth Household insurance gross written premiums have continued to grow at a moderate rate Distribution share of banks Bancassurance provision rates, operating models and partnerships Personal motor insurance Personal motor insurance is marketed by close to one third of institutions investigated UNIQA s Raiffeisen Versicherung is the most prominent underwriter by weighted share of partnerships followed by a captive and three joint ventures Many sizeable Austrian banking institutions do not bother trying to sell motor policies Household insurance s Versicherung and Raiffeisen Versicherung are the most prominent underwriters used by banks Several banks, including Bank Austria and Hypo Alpe-Adria Bank, utilise captive brokers in this field Performance of key bancassurance underwriters The main bancassurers increased their share of total non-life insurance between 2006 and Creditor insurance Consumer lending market size and growth FINACCORD (11/2011) II

3 Mortgage lending Mortgage lending balances grew at an annual average of 3.7% between 2006 and Non-mortgage lending albeit non-mortgage lending barely grew at all Credit and other pay later cards Credit and other pay later cards reached an all-time high of 2.66 million in Creditor insurance provision rates, operating models and partnerships Creditor insurance linked to mortgages The vast majority of Austrian mortgage lenders also offer creditor insurance Cardif maintains partnerships in this field with several medium-sized banks in Austria Creditor insurance linked to consumer finance Most providers of consumer finance offer related creditor insurance Cardif is strong among companies involved in automotive finance APRIL Financial Services organises creditor insurance for several lending institutions Several relatively small captive and joint venture underwriters are also active in this market Creditor insurance linked to credit cards Credit card payment protection insurance is rarely marketed in Austria Creditor insurance risk coverage All creditor insurance policies found in the research offer protection against death Alternative distribution channels Creditor insurance can also be bought from insurers directly although not online Creditor insurance market size, growth and forecast Growth in creditor insurance premiums is forecast to moderate slightly between 2011 and FINACCORD (11/2011) III

4 LIST OF GRAPHICS / TABLES 0.0 EXECUTIVE SUMMARY... 1 Overview of bancassurance provision rates for different types of insurance in Austria, INTRODUCTION... 3 Banks and other lending institutions in Austria contacted by Finaccord, segmented by type MARKET ANALYSIS Gross written premiums for investment-related life insurance and retirement savings in Austria, Gross written premiums for investment-related life insurance and retirement savings in Austria, (data) Bancassurance provision of investment-related life insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Bancassurance provision of retirement savings in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Market share in total life insurance of key bancassurance underwriters in Austria, (data) Gross written premiums for protection-related life insurance in Austria, Gross written premiums for protection-related life insurance in Austria, (data) Bancassurance provision of risk life insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Bancassurance provision of critical illness insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Bancassurance provision of income protection insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Gross written premiums for accident and health insurance in Austria, Gross written premiums for accident and health insurance in Austria, (data) Bancassurance provision of accident insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Bancassurance provision of medical expenses insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Bancassurance provision of health / hospital cash plans in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Market share in accident insurance of key bancassurance underwriters in Austria, (data) Gross written premiums for personal motor and household insurance in Austria, Gross written premiums for personal motor and household insurance in Austria, (data) Bancassurance provision of personal motor insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Bancassurance provision of household insurance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Market share in total non-life insurance of key bancassurance underwriters in Austria, (data) 46 Residential mortgage lending balances outstanding in Austria (absolute and per capita), Consumer non-mortgage lending balances outstanding in Austria (absolute and per capita), Credit and other pay later cards issued and per capita in Austria, Key data points for the consumer lending market in Austria, Provision of creditor insurance linked to mortgages in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Provision of creditor insurance linked to consumer finance in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Provision of creditor insurance linked to credit cards in Austria, 2011: provision rate, operating models and weighted provider share of partnerships Risk coverage of creditor insurance policies in Austria, segmented by type of underlying product, FINACCORD (11/2011) IV

5 Creditor insurance gross written premiums in Austria, segmented by policy type, 2007, 2011 and 2015 (forecast) Creditor insurance gross written premiums in Austria, segmented by cover type, 2007, 2011 and 2015 (forecast) Creditor insurance gross written premiums in Austria, segmented by policy and cover type, 2007, 2011 and 2015 (forecast) (data) FINACCORD (11/2011) V