creditor and lifestyle protection insurance in europe€¦ · prospectus contents what is the...

Creditor and Lifestyle Protection Insurance in Europe

© Finaccord, 2018 Web: www.finaccord.com. E-mail: [email protected] 1

Creditor and Lifestyle

Protection Insurance in Europe

Report Prospectus

January 2018

Austria, Belgium, Czech Republic, Denmark, Finland, France,

Germany, Italy, Netherlands, Norway, Poland, Portugal, Romania,

Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, UK

http://www.finaccord.com/

mailto:[email protected]



Prospectus contents

What is the research?

What methodology has been used?

How do lending institutions surveyed break down?

What is the report structure?

What are the key features of the research?

How can the research be used?

How can the PartnerBASE™ be used?

Who can use the research?

What are some of the key findings?

What is the price?

How can the research be purchased?

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What is the research?

Finaccord’s report titled Creditor and Lifestyle Insurance in Europe offers updated and detailed

insights into the market for creditor and bill payment protection insurance (sometimes also referred

to as payment protection insurance or loan-related insurance) in 20 countries. Across the 20

countries in scope, this market was worth around EUR 39.5 billion in gross written premiums in

2016, including coverage for life, permanent disability and critical illness as well as the temporary

disability and unemployment elements. However, the progress of individual markets has been

variable in recent years with steady growth in some territories offset by declines of varying degrees

of magnitude in others, sometimes as a result of regulatory intervention.

Drawing on the results of a survey of close to 1,700 organisations in the 20 countries, the report

analyses the provision of creditor and lifestyle protection insurance by lending institutions, utilities /

telecoms firms and other types of distributor. Moreover, it also documents the operating models

used for these types of insurance and the weighted share of partnerships of providers selling

through the distributor organisations researched. The PartnerBASE™ dataset that accompanies the

study details each of 1,570 distribution agreements traced by Finaccord. Together, the report,

PartnerBASE™ dataset and market data file will provide you with the definitive guide to current and

future opportunities in creditor and lifestyle protection insurance in Europe.





What methodology has been used?

Finaccord’s survey of the provision of creditor and lifestyle protection insurance by lending institutions

and other distributors in Europe was carried out in 2017 and focused on all significant lenders and

telecoms / utilities firms in each country. The research embraces the following information:

• whether creditor and / or bill payment protection insurance is marketed to borrowers;

• if so, in association with which underlying lending products?

• if so, which risks are covered?

• if so, how… through an external underwriter, multiple external underwriters, an external broker, a

joint venture underwriter, a captive underwriter or a combination of these approaches?

• if so, who are the insurance providers used in each product category?

As such, and combined with additional secondary research into both alternative distribution channels

and regulatory developments, this constitutes an update to the most thorough and comprehensive

research into the subject available for Europe.





How do lending institutions

surveyed break down?

For a full list of the organisations contacted for the research and included in PartnerBASE™, please

contact Finaccord.

Austria, 91

Belgium, 62Czech

Republic, 57

Denmark, 61

Finland, 48

France, 106

Germany, 163

Italy, 122

Netherlands, 65Norway, 56Poland, 78

Portugal, 48

Romania, 58

Russia, 87

Slovakia, 38

Spain, 95

Sweden, 91

Switzerland, 87

Turkey, 41

UK, 129Automotive captive, 133

Bank, 591

Building society, 68Co-operative

bank / credit union, 45

Savings bank, 60

Specialised lender / retail sector card issuer, 405

Telecoms / utilities firm,

391





What is the structure of the report?

Executive Summary: providing a concise evaluation of the principal findings of the report.

Introduction: offering rationale, description of methodology and some definitions.

European Overview: including an overview of both the creditor and lifestyle protection insurance

market and underlying retail lending markets in Europe, comparing and contrasting the recent

development of the mortgage, consumer finance and credit card sectors in each country covered.

Analysis of the creditor insurance market includes its segmentation by country, underlying lending

product and cover type in 2012, 2016 and with a forecast to 2020, and identification of the eight

largest groups in each of these fields by weighted share of partnerships. Also included is a

summary of the risks covered by creditor and lifestyle protection insurance policies.

Specific country chapters (20): an in-depth analysis of the market for creditor and lifestyle

protection insurance in each country including: introduction to the banking sector; analysis of the

consumer lending and credit card markets; investigation into provision of creditor and bill protection

insurance by the organisations researched and risks typically covered; overview of operating

models used for provision of these types of insurance; analysis of the weighted share of

partnerships of underwriters; size, segmentation and growth rate of gross premiums written for

creditor and lifestyle protection insurance with data spanning 2012, 2016 and 2020.





What are the key features of the research?

Key features of this report include:

• quantification of the value, segmentation and growth of markets for creditor and lifestyle protection:

how much are these markets worth and what is their future development potential?

• consideration of operating models used for creditor and lifestyle protection insurance: how does

the use of captive and joint venture underwriters by distributors differ between countries?

• calculation of weighted provider share of partnerships: Finaccord’s unique quantitative analysis

identifies which underwriters of creditor and bill protection insurance hold the relationships that offer

the most potential;

• analysis of the many types of creditor and lifestyle protection insurance policy marketed in each

country and how the risks covered vary from one distributor to another;

• investigation into alternative distribution channels for selling creditor insurance: a number of

factors, including regulatory intervention, are increasing the potential for entities other than lending

institutions to sell creditor insurance in certain countries.





How can the research be used?

You may be able to use this report, plus the PartnerBASE™ and market data file that accompany it,

in one or more of the following ways:

• appreciate the magnitude of the opportunity in creditor and lifestyle protection insurance in Europe

and how this breaks down between policies cross-sold in conjunction with mortgages, point-of-sale

automotive finance, other consumer finance, credit cards and household bills;

• identify partnership opportunities for these types of insurance and prioritise them according to the

potential that they offer as defined by the size of distributors’ retail customer base;

• understand the supply structure for creditor and lifestyle protection insurance in Europe and

whether specialists are winning business by virtue of their focused approach;

• assess the extent to which the provision of temporary incapacity and unemployment modules

within these insurance policies is commonplace in different European countries;

• gain insight into the presence of leading creditor insurance market participants including Allianz,

APRIL, Assurances du Crédit Mutuel, Aviva, AXA, BNP Paribas Cardif, CNP, Crédit Agricole

Assurances, CreditLife International, MetLife, Société Générale Insurance and Talanx.





How can the PartnerBASE™ be used?

Note - The PartnerBASE™ also includes fields showing the category of organisation, its UHC (where part of a major group) and the UHCs that own

or co-own (in the case of joint ventures) the partners used for each product type.

Source: Finaccord Creditor and Lifestyle Protection Insurance in Europe PartnerBASE

Organisation Country Category Product typeProduct

offered?Operating model Partner(s)

IberCaja Spain Bank Bill payment protection No

IberCaja Spain Bank Creditor insurance - consumer finance Yes External underwriter Caser

IberCaja Spain Bank Creditor insurance - credit cards No

IberCaja Spain Bank Creditor insurance - mortgages Yes External underwriter Caser

Iberdrola Spain Telecoms / utilities firm Bill payment protection Yes External underwriter MetLife

Iberdrola Spain Telecoms / utilities firm Creditor insurance - consumer finance n/a

Iberdrola Spain Telecoms / utilities firm Creditor insurance - credit cards n/a

Iberdrola Spain Telecoms / utilities firm Creditor insurance - mortgages n/a

Choose

operating model

Identify insurance

providers

Look up specific

organisations

Select country Choose product type





Who can use the research?

1. Insurance providers: this research is a unique guide to a significant segment within the consumer

insurance market in Europe - be fully appraised of what developments in creditor and lifestyle

protection insurance markets could mean for your organisation;

2. Providers of third-party administration services: due to its specialised characteristics, insurers

sometimes outsource the administrative processes associated with creditor and lifestyle protection

insurance, thereby creating opportunities for third-party providers;

3. Banks, other lending institutions and utilities / telecoms firms: how does your organisation’s ability to

cross-sell creditor and bill payment insurance compare with its peer group in Europe and could you

use a captive insurer to underwrite third-party insurance risks?

4. Regulatory and trade bodies: appreciate market and competitor dynamics in up to 20 countries across

Europe from an authoritative, comprehensive and transparent information source about this generally

under-researched subject;

5. Management consultancies: are you helping an insurance company with its bancassurance strategy

or evaluating how it can develop in creditor and lifestyle protection insurance? Understand the current

status of this market in Europe, saving time and effort on researching the subject yourself.





What are some of the key findings?

Source: Finaccord analysis of central bank data

10

8

6

4

2

02012 2013 2014 2015 2016

UK

Germany

France

Switzerland

Netherlands

Other

EUR trillion

1) Total consumer lending balances in Europe have been growing

steadily and exceeded EUR 9 trillion for the first time in 2016





What are some of the key findings? (cont.)2. AXA Partners is likely to be the leader in the Swedish

market for creditor insurance related to consumer finance

CREDITOR INSURANCE RELATED TO CONSUMER FINANCE IN

SWEDEN: BANK PROVISION RATE AND OPERATING MODELS

CREDITOR INSURANCE RELATED TO CONSUMER FINANCE IN SWEDEN:

WEIGHTED PROVIDER SHARES OF BANCASSURANCE PARTNERSHIPS

Weighted provider share of partnerships, %

AXA Partners, 39.2%

Cardif Nordic, 18.4%

Swedbank Försäkring,

13.5%

Handelsbanken Liv, 8.2%

SEB Pension och Försäkring, 5.0%

Länsförsäkringar, 5.0%

Crawford & Company, 2.3%

Lloyd's of London, 2.3%

other, 6.1%

% of organisations offering product, and operating models used

0%

20%

40%

60%

80%

100%

Product offered Operating model(see legend)

legend trickUndisclosed

Other

External broker

JV underwriter

Captive underwriter

Multiple external underwriters

External underwriter

Source: Finaccord Creditor and Lifestyle Protection Insurance in Europe PartnerBASE

Weighted provider share of partnerships, %





What are some of the key findings? (cont.)

3. Dominated in value terms by mortgage-related policies, the

market for creditor insurance in France has continued to grow at

a steady pace in recent years and is forecast to carry on doing so

Source: Finaccord Creditor and Lifestyle Protection Insurance in Europe Model

12.5

10.0

7.5

5.0

2.5

0.0

2012 2016 2020

Gross premiums written (EUR billion)

Series5

Series4

Series3

Series2

Series1

Policies related to bill payments

Policies related to credit cards

Policies related to other consumer finance

Policies related to point-of-sale automotive finance

Policies related to mortgages





What are some of the key findings? (cont.)

4. Key findings from the executive summary of the report include:

• the value of the market for creditor and lifestyle protection insurance across the 20 countries investigated

in Europe is likely to have been around EUR 40.9 billion in terms of gross premiums written in 2017;

• at EUR 9.4 billion in 2017, France is the largest of the 20 markets considered, accounting for around

23.0% of the total, followed by Germany with premiums of around EUR 6.7 billion;

• as for the split by type of cover, Finaccord estimates a breakdown of the market between EUR 30.0

billion attributable to cover for death, permanent disability and critical illness, and EUR 10.9 billion due to

cover for temporary incapacity and unemployment

• by 2020, Finaccord predicts that gross written premiums for all forms of creditor and lifestyle protection

insurance across the 20 countries will have increased to around EUR 45.4 billion, equivalent to a nominal

compound annual growth rate of 3.6%;

• however, in addition to the on-going possibility of regulatory intervention in certain countries, a

comparatively new threat to creditor insurance is apparent in the shape of a new generation of online

lending institutions deploying the latest technologies (i.e. ‘fintech’) to reach and serve borrowers… as

these lenders do not normally intermediate creditor insurance, this means that cross-selling opportunities

could reduce if borrowers migrate in substantial numbers to them.





What is the price?

Reports in this series are available as standard PDF documents. The PartnerBASE™ datasets and

market data files that accompany them at no further charge are in Excel format. Prices for these

reports are as follows:

For Singapore-based clients, GST at the prevailing rate will be added to the basic price.

Costs quoted are for a single site user licence only.

For a corporate user licence, please see the next slide for further details.

Invoices can be paid in EUR or GBP, at the prevailing exchange rate, if preferred.

Argentina USD 895 Greece USD 895 Portugal USD 1,195

Asia-Pacific Region USD 4,195 Hong Kong USD 895 Romania USD 1,195

Austria USD 1,195 India USD 895 Russia USD 1,395

Belgium USD 1,195 Indonesia USD 895 Slovakia USD 1,195

Brazil USD 895 Italy USD 1,395 South Africa USD 895

Canada USD 1,395 Japan USD 895 South Korea USD 895

Chile USD 895 Latin America USD 2,795 Spain USD 1,395

China USD 895 Malaysia USD 895 Sweden USD 1,195

Colombia USD 895 Mexico USD 895 Switzerland USD 1,195

Czech Republic USD 1,195 Netherlands USD 1,195 Thailand USD 895

Denmark USD 1,195 Norway USD 1,195 Turkey USD 1,195

Europe USD 8,395 Peru USD 895 UK USD 895

France USD 1,395 Philippines USD 895 Vietnam USD 895

Germany USD 1,395 Poland USD 1,195

CREDITOR (AND LIFESTYLE PROTECTION) INSURANCE IN...





How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord website, create your account (if you do not

have one already) and place your order online. Products paid for online by card will be delivered

immediately by e-mail but please allow up to one working day for delivery by e-mail if you choose to

pay on receipt of invoice.

With regards to the corporate user licence, you will be asked to choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

Alternatively, you can place an order by sending your request to [email protected], clearly

stating the product(s) required, associated price(s) and billing details for eventual invoice or card

payment receipt.




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