Retailer Insurance and Assistance in Europe

Retailer Insurance and Assistance in Europe

Retailer Insurance and
Assistance in Europe
Report Prospectus
November 2013

Expertise in financial services
© Finaccord Ltd., 2013

Web: www.finaccord.com. E-mail: info@finaccord.com

1


Prospectus contents
Page
What is the research?
What is the rationale?
What methodology has been used?
How do organisations surveyed break down?
Which specific retailing groups have been researched
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 cost and format?
How can the research be purchased?

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13-16
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2


What is the research?
Retailer Insurance and Assistance in Europe is a report about the involvement of major retail
brands in Europe in the distribution of stand-alone accident, dental, health, household, life, motor,
pet, travel and other insurance, plus assistance products, as part of a growing trend in financial
services sometimes referred to as ‘brandassurance’. According to this research, 107 retail brands in
Europe promote insurance or assistance products, up from 76 in the previous study issued in 2010.
Indeed, major retail brands are found to be active in this arena in 24 of the 33 countries researched.
Namely, these are Austria, Belgium, Czech Republic, Estonia, Finland, France, Germany, Hungary,
Ireland, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia,
Spain, Sweden, Switzerland, the UK and Ukraine, hence chapters for each of these are included in
the publication.
In fact, the study provides a comprehensive and detailed overview of the Europe-wide market for
insurance sold to consumers by supermarkets, department stores and other types of retail chain.
Moreover, the PartnerBASE™ dataset that accompanies the report details each of the 386 product
marketing initiatives traced by Finaccord for the lines of consumer insurance investigated, including
the operating models and insurance providers used.



3


What is the rationale?
A number of factors, some of which are specific to financial services and some to retailing, provide
ample justification for the development of this report and the sister reports covering other topics in
retailer banking and insurance worldwide. With regards to financial services, this rationale can be
broken down between what might be characterised as ‘traditional’ retailer financial services (i.e. cobranded / store cards and consumer finance / personal loans) and ‘non-traditional’ retailer financial
services (i.e. insurance, assistance, mortgages and savings accounts).
Concerning ‘non-traditional’ retailer financial services, it can be asserted that in much of Europe,
consumers are changing the way in which they acquire financial services and demonstrating an
increasing willingness to use alternative distribution systems, including major non-financial brands
such as large retailers. Moreover, the successful precedent of retailer insurance in markets such as
Chile and the UK is encouraging major retail brands in other countries to challenge the traditional
distribution systems with their own ‘brandassurance’ propositions
Furthermore, it should be acknowledged that successful retailers in less developed European
markets are growing rapidly as an increasing proportion of consumers allocate their expenditure to
more sophisticated retailing concepts. In addition, a mature environment for retailing in the more
developed markets signifies that retailers need to investigate new means of achieving revenue
growth which can include insurance products, in particular.



4


What methodology has been used?
The main research input into this study is Finaccord’s on-going investigation of the involvement in
financial services, in general, and insurance and assistance, in particular, of over 3,300 major retailing
brands across 33 countries in Europe.
n the specific context of this report, the aim of the investigation is to gather top level data concerning
the distribution of insurance and assistance products by the organisations in question, and the
insurance and assistance providers with which they work in this context.

Naturally, given that there are literally millions of smaller retailers in total in the territories reviewed, the
majority with just a single outlet, Finaccord has sought to focus on the very largest entities that are
likely to be of most strategic interest to organisations involved in insurance, assistance and wider
financial services markets. Indeed, the major retailers break down by category and by country as
illustrated in the graphics overleaf.



5


How do organisations surveyed break down?
Books and media, 104
Sporting goods, 131
Speciality, 184

Fashion, 699
Offline only, 1,455

Department store /
variety, 200
Mixed, 1,356
Fuel, 252
Consumer
electronics,
564

Health and
beauty, 231

Supermarket /
hypermarket, 490

Online only, 503

DIY / furniture /
home, 459

BY TYPE

BY DISTRIBUTION MODEL



6


Which specific retailing groups
have been researched?
Among the major retailing groups included in the research are:
3 Suisses
Agorà Network
Ahold
Aldi
Alliance Boots
Amazon
Arcadia
AS Watson
Auchan
AVIA International
Axel Johnson
Baltika Group
Bauhaus
Baumax
Bertelsmann
Bestseller
BP
C&A
Carrefour
Casino

CBA
Celesio
Colruyt
Conforama
Coop Norden
Cortefiel
Dansk Supermarked
Darty
Delhaize Group
Dixons Retail
dm-drogeriemarkt
E. Leclerc
EDEKA
El Corte Inglés
El Dorado
ENI
Eroski
Euretco
Euronics
Expert International

ExxonMobil
Fnac
Fressnapf
Gazprom
Groupe Galeries Lafayette
Grupo Inditex
GUM
Harald Nyborg
Home Retail Group
House of Fraser
ICA
IKANO
IKI
Kering
Kesko
Kingfisher
Leroy Merlin
Les Mousquetaires (ITM)
Louis Delhaize
Lukoil

Marks & Spencer
Maus Frères
Mercator
Metro Group
Migros
Modelo Continente
MOL
Morrisons
OMV
OTTO
Oxylane
PKN Orlen
Rakuten
Rautakesko
Reitan
Resurs Group
REWE
Royal Dutch Shell
Schwarz Group
Sedmoi Continent

Shop Direct Group
SOK
Sonae
Spar (Austria)
Sports Direct
Staples
Statoil
Stockmann
Svyaznoy
Système U
Tchibo
Tengelmann
Tesco
Total
Toys R Us
Varner Gruppen
Vivarte
VP Market
X5
Zalando



7


What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.
1. Introduction: offering rationale, description of methodology and other related notes.
2. Regional Overview: comprising a global overview of the intermediation by major retail brands of
stand-alone accident, dental, health, household, life, motor, pet, travel and other insurance, plus
assistance products. This includes analyses of retailer involvement by country and type, the
operating models used by retailers that have established insurance or assistance schemes, and the
insurance providers that are most influential in this distribution channel in Europe. In addition,
consumer research data is also provided showing in detail the influence of retailers in France,
Germany, Italy, Poland, Spain and the UK on those countries' insurance markets.
3. Austria: an overview of the involvement as distributors of insurance and assistance products of
major retail chains in Austria including identification of operating models and insurance providers
used.
4 - 26: chapters for all other countries are structured along similar lines to that for Austria.



8


What are the key features of the research?
Key features of this study include:
• in-depth consideration of retailer provision of mainstream insurance: 107 major retail brands drawn
from 64 retailing groups in 24 countries out of the 33 researched are active in ‘brandassurance';
• identification of the operating models and brokers or underwriters used for 386 individual insurance
product marketing initiatives instigated by major retailers;

• consideration of the involvement as insurance intermediaries of major brands from retailing
categories including: department stores and variety retailers; DIY, furniture and home product
chains; health and beauty outlets; and supermarket / hypermarket brands;
• background commentary and data concerning the broader banking and payment card operations of
major retail chains that have developed insurance propositions;

• availability of an accompanying PartnerBASE™ dataset that lists all retailers researched, the
insurance and assistance products that they promote and the providers used to source those
policies.



9


How can the research be used?
You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of
the following ways:
• gain rapid access to a unique and comprehensive source of intelligence that provides a Europewide perspective on the involvement of major retailers in the insurance and assistance sector;
• understand which of your competitors have been successful in establishing insurance or
assistance distribution partnerships with significant retail brands;
• evaluate the opportunities for creating marketing relationships with different types of retail chain
for eight distinct lines of consumer insurance plus other insurance and assistance products;
• learn about the wider context behind the diversification into insurance and assistance of major
retail brands and identify retailers already active in financial services that are likely to develop
insurance propositions in future;
• use the PartnerBASE™ dataset to filter information about retailer insurance and assistance
schemes by country, retailer category, product, provider and other criteria.



10


How can the PartnerBASE™ be used?
Filter by type
of insurance

Select country

Retailer

Country

Product type

Coop bau + hobby
Debenhams
EDEKA
France Loisirs
Franprix
Fressnapf

Switzerland
UK
Germany
France
France
Austria

Pet
Pet
Pet
Pet
Pet
Pet

Look up
specific retailers

insurance
insurance
insurance
insurance
insurance
insurance

View UHCs of
insurance partners

Product offered? Operating model Partner(s)

Yes
Yes
Yes
Yes
Yes
Yes

External partner
External partner
Captive partner
External partner
External partner
External partner

ETI
BDML / Zenith
EDEKA Versicherungsdienst
AssurOne
Amaline
AGILA Haustierversicherung

Choose operating model

UHC(s) of partner(s)

Munich Re
Capita / Zenith
EDEKA
Natixis
Groupama
Wertgarantie

Identify insurance
partners



11


Who can use the research?
1.

Insurance underwriters and assistance firms: the policies sold through most retailer insurance
schemes are underwritten by a single, external insurance or assistance company hence
successful relationships with major retail brands can yield significant volumes of new business;

2.

Insurance brokers: some retailers that have diversified into selling insurance have chosen to do
so by collaborating with a broker rather than directly with an underwriter hence partnerships
can also be of interest to brokers of consumer insurance or assistance products;

3.

Retailers: in the UK, with its joint venture underwriter, Tesco is seeking to expand substantially
its number of customers with Tesco-branded motor or household policies - hence, it is apt to
ask to what extent major retail brands in other countries can hope to replicate this success?

4.

Banks and lending institutions: retail chains that promote insurance products have invariably
built this activity on top of pre-existing payment card and / or banking operations which means
that this subject could also be of relevance to banks and lending institutions;

5.

Management consultancies: are you helping an organisation in any of the preceding categories
with its approach to retailer insurance or assistance? This research will provide you with a panEuropean overview of current initiatives in this field, saving time and effort on researching the
subject yourself.



12


What are some of the key findings?
1. Across the whole of Europe, 3.2% of major retail brands promote insurance or
assistance with the highest activity rates found in Finland, France and the UK
Finland

10.5%

UK

9.5%

France

7.6%

Hungary

5.6%

Poland

5.5%

Germany

3.8%

Latvia

3.3%

Estonia

3.1%

Romania

3.1%

Italy

2.9%

Europe-wide average

3.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

% of major retail brands distributing stand-alone insurance or assistance products
Source: Finaccord PartnerBASE



13


What are some of the key findings? (cont.)
2. In Europe, retailer schemes for selling household
and motor insurance are most numerous
Number of insurance and assistance schemes identified
60

59

58

50

45

40

43

41

39

37

36

30
19

20
9

10
0

Household Motor
insurance insurance

Accident
Pet
Life
Travel
Health
Dental
Other
Assistance
insurance insurance insurance insurance insurance insurance insurance




14


3. The supply structure for selling insurance and assistance policies through
retailers is fragmented whether viewed in unweighted or weighted terms
Sampo, 7.8%

Carrefour, 7.1%

AXA, 6.3%

AXA, 5.3%
AEGON, 5.0%

Covéa, 6.0%

Groupama, 4.6%
Munich Re, 5.1%
MetLife, 4.1%

Allianz, 4.2%

Allianz, 4.1%

Capita, 3.7%

other, 60.7%

other, 61.8%
Munich Re, 3.7%

Groupama, 3.4%

Carrefour, 3.7%

UNWEIGHTED

HanseMerkur
Versicherungs gruppe, 3.3%

WEIGHTED




15


4. Key findings from the executive summary include:
• According to this latest survey, at least one insurance or assistance product is promoted by 107 of
the retailers researched in Europe, equivalent to a provision rate of 3.2%, and with at least one
initiative visible in 24 of the 33 countries;
• these 107 retail brands are themselves drawn from 64 separate retailing groups and both figures
represent a substantial increase on those generated from the equivalent previous research
published in 2010 given that this found 76 retail brands drawn from 46 groups with involvement in
the insurance or assistance sector;
• by retailer category, department store and variety retailers show the highest overall provision rate
at 11.5%, followed by supermarkets and hypermarkets at 8.6% of brands researched in this field;
• whether viewed in unweighted or weighted terms, Allianz, AXA and Munich Re appear
consistently as the ultimate holding companies of insurance providers with a significant presence in
the retailer distribution channel as does Carrefour, a retail group that owns or co-owns several
insurance providers of its own.



16


What is the cost and format?
Retailer Insurance and Assistance in Europe is available as a standard PDF document. The
PartnerBASE™ that accompanies it at no further charge is in Excel format. Costs for this research
set and selected other comparable, international titles are as follows:

GBP 1,295

Global Retailer Consumer Finance and Banking
Global Retailer Insurance and Assistance
Global Retailer Online Payment Acceptance
Global Retailer Payment, Gift and Loyalty Cards
Retailer Consumer Finance and Banking in the Asia-Pacific Region
Retailer Consumer Finance and Banking in Europe
Retailer Consumer Finance and Banking in North and Latin America
Retailer Insurance and Assistance in the Asia-Pacific Region
Retailer Insurance and Assistance in North and Latin America
Retailer Online Payment Acceptance in the Asia-Pacific Region
Retailer Online Payment Acceptance in Europe
Retailer Online Payment Acceptance in North and Latin America
Retailer Payment, Gift and Loyalty Cards in Europe
Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region
Retailer Payment, Gift and Loyalty Cards in North and Latin America

GBP 2,495
GBP 2,495
GBP 3,495
GBP 3,495
GBP 995
GBP 1,295
GBP 995
GBP 995
GBP 995
GBP 1,295
GBP 1,995
GBP 1,295
GBP 1,995
GBP 1,295
GBP 1,295

* For UK-based clients, VAT 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 final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate,
if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available.



17


How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available
www.finaccord.com/order_global_rfsr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable

at

Please allow up to one working day for the delivery of electronic copy by e-mail.
* For the corporate user licence please 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
VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



18

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