preparing for the era of the mega-fund may 2012 d glenn sedgwick

2Copyright © 2012 Accenture All rights reserved.

Accenture's latest report…


Today's Agenda

• Forces of Structural Change


Today's Agenda


• Business Model Innovation


Today's Agenda


• Business Model Innovation

• Getting Started


Forces of Structural Change

• Growth and Consolidation


Our Industry will be a very different place…

Source: APRA Annual Superannuation Bulletin June 2011




2017

over $2 Trillion



Source: APRA Annual Superannuation Bulletin June 2011 Source: Rice Warner Media Release December 2011

2017

over $2 Trillion




≈74 FundsBiggest @ ≈$350

BillionAverage fund ≈$80-

$90 Billion

2017

over $2 Trillion

Source: Rice Warner Media Release December 2011




• Government Reform





• Aging and Competition




• Aging and Competition

• Consumers are Changing


The industry today



2011FUA $ Billion

SMSF

Retail Super

Industry Funds

Public SectorCorporateSmall

A new industry structure



2011FUA $ Billion 2016

“A 3 cornered contest”

HIGH RETURN?

FULL SERVICE?

HIGH COST?

HIGH RETURN?

FULL SERVICE?

HIGH COST?

LOW COST?

HIGH RETURN?

LOW SERVICE?

Retail

SMSF

Industry ?

SMSF

Retail Super

Industry Funds

Public SectorCorporateSmall

Shift to Online

Copyright © 2012 Accenture All rights reserved.

Please indicate the percentage of your business generated by each of the following channels. Changes

between2007 - 201329% drop

12.5% drop

6% drop

250% gain

400% gain

4%11%

14%

15%15%

14%

8%3%

2%

32%29%

28%

44%37%

31%Non tied advisory channels

Tied or captive agents

Bancassurance

Phone (branch, call centres)

Internet (PC and mobile devices)

2010* 2013*2007**

Source: Accenture Global Multichannel Distribution Survey, 2010. Accenture Global Insurance Global Survey, 2007

1. Retailers, travel firms, etc.

17

Potential Solutions


New operating models

Cometa is using Accenture’s business process outsourcing services

Case Study:

Potential Solutions


New operating models

Cometa is using Accenture’s business process outsourcing services

Benefits•Cut acquisition time for new enrolments by 20%•Reduced hard-copy inputs from employers by 75%•Reduced the time it takes to invest in Super by 80%•Cut pension payment times by 30%

Case Study:

Potential Solutions


Case Study:

• Face to face transactions costing US$15 each

Potential Solutions


Case Study:

• Face to face transactions costing US$15 each

Benefits• By 2009 – 39 millions out of 41 million (95%) of

member transactions completed through an online channel – costing 10 cents each.

Potential Solutions


Case Study: WIP

Members: ≈ 900K

FUM: ≈ 35 Billion

Workplaces: ≈ 60K

Potential Solutions


Approach:

1.Move from “registry processing” to “member-centric”

2.Replace former legacy apps (Pensions/Insurance)

3.Embrace online and mobile

Case Study: WIP

Members: ≈ 900K

FUM: ≈ 35 Billion

Workplaces: ≈ 60K

So What? … 3 things


• Get a Plan



• Get a Plan

• Get Ready



• Get a Plan

• Get Ready

• Get Going

Soon to be released Accenture global pensions survey

• 8,100 consumer interviews in 15 countries

• 15 country reports: market trends and opportunities for insurers

• Pensions landscape: pension landscape overview, insurers imperatives and key pension market trends

• The pension potential index: assessment of 21 countries according to a combination of variables in order to identify the level of opportunities and challenges for insurers

• Survey report - global results as well as key results by country and consumer profile (e.g. age, gender)

Copyright © 2012 Accenture All rights reserved. 27

preparing for the era of the mega-fund may 2012 d glenn sedgwick

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