competing in a distribution dynamic
DESCRIPTION
TRANSCRIPT
Vienna, Jun 2010.
Margerita Boskovic, director Distribution Sales Channels Department
DUNAV Insurance Company
Vienna Jun 2010.
Dunav27%
DDOR21%Delta Generali
18%
Wiener8%
UNIQA5%
OTHER21%
0
20
40
60
80
100
120
140
160
Dunav DDOR Delta Generali
Wiener UNIQA OTHER
153
116 98
47
30
114
Vienna Jun 2010.
154,0
Vienna Jun 2010.
Insurance Market in Serbia - significant improvements are obvious
2004 2005 2006 2007 2008 2009 trend
Total premium 22,6 34,7 38,3 44,8 52,2 53,5
Life ins. premium 1,7 3,3 4 4,9 6,3 7,9
share in total premium 7,4% 9,5% 10,6% 11% 12,2% 14,7%
Non-life ins. premium 20,9 31,4 34,3 39,8 45,8 45,7
Insurance density €38 €55 €65 €77 €80 €76
Life insurance premium per capita €3 €5 €7 €8 €10 €11
Insurance penetration 1,6% 2,1% 1,9% 1,9% 1,9% 1,9%
Total assets 30,8 46,4 56 70,6 84,8 99,2
Capital 15,6 18,6 20,7 24,7 25,3 29,2
Technical reserves 11,5 22,9 28,9 39,5 51,5 60,5
Number of IC 40 19 17 20 24 26
Number of employees 5407 7283 7876 9697 11713 11142
In bilion RSDIn bilion RSD
Serbia
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna Jun 2010.
•Our financial sector did not operate with complex financial instruments, and was not plagued with so called toxic assets.
•IMF forecast: Serbia will record 2% (2,3%) of GDP decrease in 2009.
•Activities focused on: development and improvement of risk management functions; UW developing in the process of selling policies; strengthening corporate management, which requires education of insurants and improved sales network, also all kind of distributive channels
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna Jun 2010.7
Vienna Jun 2010.
Sombor
ZrenjaninNovi sad
SremPančevo
Šabac
BeogradPožarevac
SmederevoValjevo
ZaječarUžiceČačak
Kraljevo
KragujevacJagodina
Niš
Leskovac
Kruševac
Vranje
Pirot
Sales centres of Dunav Insurance Company
Insurance sales via Distributive channels – „Dunav Osiguranje“ a.d.o.
Vienna Jun 2010.
Vienna Jun 2010.
- INSURANCE COMPANY (2nd in Rep. Srpska - 19% market share)
- REINSURANCE COMPANY(1st place in Serbia, over 70% market share in 2008)
- PENSION FUND (1st place in Serbia, 50% market share)
Vienna Jun 2010.
LIFE – 4th place(cca 10% market share)
NON-LIFE - 1st place (cca 27,4% market share)
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Sales channels according to legal act:
• INTERNAL – sales force • EXTERNAL:-Brokers - 37-Legal Entities - 65-Physical Entities - Enterpreneurials - 123-Banks - 16-Tourist Agency - 1-Physical Entities licenced for insurance - 800
Also, insurers tend to develop alternative channels essential for segmentated clients, various by structure and type of sales and consistant with the needs and comfort aproach to the client.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Elements of encouragement ambient in insurance:a)Tax deductions in part that is in correlation with the development of life insurance;b)Expanison of distributive channels - sales force by legal changes that are expected in the following period.
Main goal of these changes is to increase the number of employees, it is assumed that 5000 people can be educated in life insurance sales, therefore this can be practised as an additional business (current legal stand inhibit isnurers from having any additional practise).
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Dunav evenly developes external and internal network guided by the following principles:
1.Maximum usage of advantages in internal network expertise (UW capacity, claim adjustment, extended network), with the concern on profitabillity of internal network.2.Operating with large number of external network sales – conditioned by the structure and client demands as well as actions on the market;3.In the process of Company transformation focus has altered from product to client. Client segmentation has conditioned defining sales channels determening which is the best way of aproaching a certain client category.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna Jun 2010.
Primal strategic directions which contain all of the standard and nonstandard products:
offering an integrated product and servicesimprovement cross sell and up sell technique of selling – better focus on the clientconcentrate on comparative advantages
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
• Internal network – 30% in the MTPL area and 50% in other types of nonlife insurance• Main objective is to increase sales via internal network using the following tools:Sales plans and defining product mix (for empolyees) Cross sell tehnique, education Recuperation of businesses that maintain MTPLInvesting in our own capacity, in developing our front desk sales, instalation and purchasing new Tehnical inspections) of the highest standards
Maximum usage of advantages in internal network expertise
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna Jun 2010.
SHAREHOLDERSMEETING
SHAREHOLDERSMEETING
Sales and marketingSales and marketing ITITClaimsClaims
Sharedfunctions
department
Sharedfunctions
department
Insurance DirectoratesInsurance Directorates
Individual clientsand entrepreneurs
Directorate
Individual clientsand entrepreneurs
Directorate
SME’sDirectorate
SME’sDirectorate
Major corporateclients
Directorate
Major corporateclients
Directorate
Life insuranceDirectorate
Life insuranceDirectorate
MANAGEMENTMANAGEMENT
SUPERVISORYBOARD
SUPERVISORYBOARD
FinanceFinance LegalDepartm.
LegalDepartm.
Internal audit
Internal audit
Actuarial and
Statisticsdepartment
Actuarial and
Statisticsdepartment
HRHRProcurement
andmaintaines
Procurementand
maintaines
Client Segmentation and distributive channels eligable for sales:
Individual segment Small and medium businesses segment Large Commercial Clients
“Dunav” Sales network “Dunav” Sales network “Dunav” Sales networkMOT’S Independent Agents Independent AgentsIndependent Agents Brokers BrokersMunicipal utilities Leasing companies Associations Associations Travel agencies Call centers Call centers Internet Internet Banks Banks Mobile phones
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Individual Small & Medium Businesses
Large comercial utilities
Products / Segment
Automobile liability insurance
Hard Asset
General liability
Accident
Travel insurance
Life insurance
Pension insurance
Health insurance
Product liability
Farming insurance
Marine insurance/Cargo
Machine breakage insurance
Group Accident insurance
Group Health isnurance
Group Life insurance
Group Pension insurance Main product
Aditional product
Periodical productUnnecessary product
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Product importance Products Sales network. "Dunav"
Vehicle Inspection
Agents (independent)
Brokers Companies/Associations
Leasing companies
Municipal Utilities
Banks Call centres
Internet Travel agencies
Very importantAutomobile liability insurance
Very important Estate
Very important General Liability
Medium important Accident insurance
Travel insurance
Less important Life insurance
Less important Pension insurance
Less important/out Health insurance
Medium important Product liability
Very important Farming insurance
Medium important Marine insurance/Cargo
Medium importantMachine breakage insurance
Very important Group Accident inurance
Less important/out Group Health isnurance
Medium important Group Life insurance
Medium important Group Pension insurance
Main channel
Additional channel
Periodical channel
Future chanell
Unnecesary channel
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Product importance Products Sales network. "Dunav"
Vehicle Inspection
Agents (independent)
Brokers Companies/Associations
Leasing companies
Municipal Utilities
Banks Call centres
Internet Travel agencies
Very importantAutomobile liability insurance
Very important Estate
General Liability
Very important Accident insurance
Medium important Travel insurance
Medium important Life insurance
Less important Pension insurance
Less important/out Health insurance
Product liability
Medium important Farming insurance
Medium important Marine insurance/Cargo
Medium importantMachine breakage insurance
Group Accident inurance
Group Health isnurance Group Life insurance Group Pension insurance
Main channel
Additional channel
Periodical channel
Future channel
Unnecesary channel
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Product importance
Products Sales network. "Dunav"
Vehicle Inspection
Agents (independent)
Brokers Companies/Associations
Leasing companies
Municipal Utilities
Banks Call centres
Internet Travel agencies
Very importantAutomobile liability insurance
Very important Estate
Very important General Liability
Accident insurance
Travel insurance
Life insurance
Pension insurance
Health insurance Medium important Product liability
Very important Farming insurance Medium important Marine insurance/Cargo Medium important
Machine breakage insurance
Medium important Group Accident inurance Less important/out Group Health isnurance Medium important Group Life insurance Medium important Group Pension insurance
Main channel
Additional channel
Periodical channel
Future channel
Unnecesary channel
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
What determens insurance market in Serbia is high presence of (MTPL) – 30% of the total premium is generated from MTPL.
Sales structure of MTPL:• 70 % via external sales channels – agencies and tehnical inspections (MOT)• 30% is sold via internal network.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
The only way in conducting a concept of enhancement market share and cost decline is investing in our own capacity:• Front desk salesFront desk invesments Development of Precompensation system• Sales channels of „Dunav Auto“Recuperation of businesses that maintain MOT’s Instalation and purchasing of new Tehnical inspections in cooperation with „Dunav Auto“
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
•Brokers – relatively new channel on Serbian market
•Problem characteristics of MTPL – MOT•Banking insurance -used for non-life
products selling•IT tehnology, mobile operators, call
center – on the begining
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
•Brokers – relatively new channel on Serbian market
Preferences: Rarely extrapole for physical entities Mostly clients are taken by the insurer – so
the brokers are our competitors and a great challenge is good relation with them
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
• Concerning Tehnical inspections
obsolete Motor pool (around 2 million vehicles – average age of the vehicles is 12 years)MOT’s are conducted every year appliance of the new legal act that standardise the rules of tehnical inspections (MTPL)
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
It still in its begining allthough in the end of the year 2006. it was enabled by an legal act for the banks to do business in presenting insurance. Characteristics and variety in relation to the foreign market:a)This sales channel is more succsesfull in non life insurances and thereby is uprising;b)Life insurances are sold less trough this channel for multiple reasons:•Low level of developing in life insurance due to historical reasons (inflation, war, etc);•Life insurance policy is not a liable element with credit products.Productivity trough banks sales is 2 times larger in relation with the traditional agent network.
• Bankassurance
Vienna, Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.
Vienna Jun 2010.
Insurance sales via Distributive channels – “Dunav Osiguranje” a.d.o.