Building Insurance Solutions

Transcription

1 Building Insurance Solutions

2 Insurance and IT Size of Australian General Insurance Market in Premium - $40b The general insurance industry is a large and well established market within Australia. Internationally premiums dwarf the Australian market, however still offer considerable growth in the emerging markets of Asia, South America and Africa. According to various Industry Surveys the insurance industry is lacking investment and progress in addressing changing consumer purchasing habits. More consumers are turning to digital mediums to research and purchase insurance in Australia and globally. Locally, in the last number of years online Insurers have invested and offered domestic insurance. By offering their suite of domestic products online (House and Contents/Motor) in a short period of time have won a considerable market share from the traditional major insurers (circa 30%). Termed massive digital disruption. Albeit a successful model, it is flawed as the consumer currently has to visit various websites to obtain various quotes, taking up a considerable time. Insurers will not sell other insurers. A new model is required to offer a comparison site where the consumer can obtain multiple quotes and purchase in a very short period of time. Success of this model can be seen through Ensurance Group s current sales. Size of Australian General Insurance Market in Premium $40b Currently there are no blanket consumer comparison sites available in Australia for general insurance. Insurers cannot offer the consumer a multi insurer comparison site. Only a licenced insurance broker can offer this service. Ensurance Group, incorporating an Insurance Brokerage, Underwriting Agency and IT Development company is market leader in the provision of these services.

3 Insurance and IT Key Insights The key insurance challenge is how to harness the power of digital to better engage directly with customers and lower costs. Ernst & Young, - The journey toward greater customer centricity Ernst & Young, 2013 We really need to be discussing consumerism and technology. Technological advancements carry massive implications for the future of providing financial advice - Address to the Financial Services Council conference, ANZ managing director for global advice and distribution, Paul Barrett, 2013 New digital technologies are irrevocably changing the way consumers engage and interact with insurers Digital may be the solution to meet both the expectations of customers and distributors, as well as aligning with the CFO s cost agenda EY Global Insurance Digital Survey 2013 Insurers are currently lagging behind the digital curve, and conditions for future success are not yet in place. As a result, many may struggle to deliver on customer expectations; new entrants and digitally leading competitors will look to exploit this failing EY Global Insurance Digital Survey 2013 About 26% of consumers use comparison websites, and the figure is rising rapidly Accenture MD Ravi Malhorta 2013 Financial services is within the top 3 industries vulnerable to digital disruption (short fuse & big bang) Short fuse, big bang? Deloitte 2012 Changing technology, greater access to information, changes to the way people and businesses do business and increased pressure on margins for SMEs will further contribute to shifts in the insurance marketplace. Vero SME Insurance Index 2013 More businesses and consumers are using the Internet and mobile technology to assist with the purchase of insurance products and services than ever before. Ernst and Young s 2012 Global Consumer Insurance Survey According to the 2011 annual survey produced by The Cameron Panel, 74% of those businesses with internet access have used the internet to purchase insurance premiums online, up from only 59% in % of SMEs with internet access have researched general insurance products or cover via the internet, which is up from 36% in The survey also revealed increased interest in online insurance services within the Australian market with 50% of SMEs stating they would be interested in purchasing commercial insurance online (up from 36% in 2010).."Clearly an aggregator an iselect in the business insurance arena would change this and could potentially change the buying dynamics quite fundamentally ("SMEs Through Time : The Cameron Panel". 2011). AAMI data found that 40 per cent of business insurance policies bought online are bought outside normal business hours - AAMI press release 2011

4 Company Structure

5 Company Structure Savill Hicks Corp Insurance Brokerage operating for more than 22 years with large client base. Established and experienced reputational brand across Australia Market leader in the provision of online commercial general insurance products. Eg Trades, Construction, Liability, Transit, etc. In discussions with several large groups who have significant distribution channels. High Growth potential Proven success of strategy by international broker.

6 Company Structure Ensurance IT Developed bespoke and innovative software designed to enhance and expand insurance distribution online channels. Significant investment to date on the new technology platforms. Lodged Patent One of the first in Australia to offer software that enables white labelled clients to sell multiple general insurance products and insurers. One of the first in Australia to connect IT systems directly to major insurers. Software commercially trialled through SHC and Ensurance Underwriting. Existing robust software already performed over 60,000 transactions. Globally scalable; can take IT model and export internationally.

7 Company Structure Ensurance Underwriting A new Underwriting Agency providing innovated products into the Australian market. Introduces new online products to sit beside traditional markets. Lloyds and local capacity Principally dealing with the Australian Brokering community. Currently sells a majority of its products through SHC (sister company), obtaining greater leverage and higher revenue earnings from same product; two bites of the same apple. High growth potential. Introduction of Australian first insurance products into Australia.

8 Existing Products Online Trades Transit Home Warranty Certificate Over 60,000 Transactions SHC Owner Builder Construction

9 Stage 2 Direct Consumers Major Insurer A Comparison Sites Blue Chip White Labelling Ensurance Group Major Insurer B Associations & Life Insurers / Agents Major Insurer C

10 Industry White Labelling Consumer Websites Mortgage Brokers Insurer A Regional Banks SHC Brokers Insurer B Associations Ensurance IT Ensurance Underwriting Ensurance IT Director Consumer Clients Life Insurers / Agents Others

11 Stage 3 Retail IT Software Wholesale IT Software Potential JV Broker Network Potential JV UK / Europe Potential JV Asia Potential Life Products Online e.g. Life / Disability

12 What Makes the Software Innovated Improved Retention of clients Analytics are critical data sets for future success Need to embrace online and mobile wave Increases services to 24/7 Increases Education of Customers Lowers Cost of Acquisition Increases Profitability Easier Integration of Social Media Constant Contact - Helps build brand awareness of clients Attracting New Business Increased Ability to Cross Sell and Up-Sell automatically Aligning to customer purchasing habits and enriching their experience Greater control of customer relationship Greatly Improved Creditor Control Reporting and Tracking Globally Scalable Growth on tap

13 The Team Adam Davey Chairman Mr Adam Davey s expertise spans over 25 years and includes capital raising (both private and public), mergers and acquisition, ASX listings, asset sales and purchases, transaction due diligence and director duties. Adam has been involved in significantly growing businesses in both the industrial and mining sector. This has been achieved through holding various roles within different organisations. Including Chairman, Managing Director, Non-executive director, major shareholder or corporate adviser to the board. Adam is Non-executive Director of Parker Resources NL. Adam is also the Chairman of Teen Challenge Foundation, the largest Youth Drug and Alcohol Rehabilitation Centre in Western Australia. Stefan Hicks Managing Director Mr Stefan Hicks is the Managing Director and Founder of Savill Hicks Corp Pty Ltd. Commencing in Perth as Savill Hicks & Associates in 1990, the company has grown to a national presence over 23 years, now head quartered in Sydney, NSW. Stefan oversaw the growth interstate with income in excess of $3m and turnover over $22m. Stefan s expertise includes Corporate Governance, Company Strategy, Acquisitions/Mergers, Servicing Corporate Clients, Stakeholder Relationships, Group s Financial Management, Group s Marketing and Public Relations, Employing Direct Reporting Staff, Legal Affairs, Binder Inceptions and Reviews, Insurer Relationships, AFS Licence Compliance, Information Technology and International Relationships. Previously held senior insurance positions in Alexander Stenhouse (Aon), Perth; Willis Faber Johnson and Higgins (Willis), Melbourne; and stockbroker position with boutique corporate advisory Montagu Stockbrokers. Member of the Australian Company Institute of Directors.

14 The Team Brett Graves Director & CEO of SHC Mr Brett Graves is the Director, and CEO of subsidiary Savill Hicks Corp Pty Ltd. Brett s expertise includes implementation of growth strategies, oversight and management of National Online Solutions and Partner Program (White Labelling), managing relationships with insurers, advising Government Boards on the implementation and strategy of legislative insurance products, management of current binder arrangements, compliance management including risk management, HR management and budgeting / business planning, corporate client management. Previously held various senior national positions in insurer Vero (Sydney and Melbourne), including national Underwriting Manager for Home Warranty and Construction. Fellow of ANZIIF. Michael Huntly CEO of Ensurance Underwriting Pty Ltd Michael s skills include extensive experience in the industry in senior positions, management of large national books of business, managing Insurer relationships locally and internationally, advising Government Boards on the implementation and strategy of legislative insurance products, construction and implementation of new innovated products into Australia, senior underwriting positions, compliance, policy wordings, risk management, HR management, Budgeting and Business Planning, Reporting. Previously held senior national roles at AustAgencies (ASX Listed AustBrokers), Calliden Group (ASX Listed), Vero/Sun Alliance Group (Part of Suncorp) for Business Premiums in excess of $110m. Senior Associate ANZIIF Lead and managed Calliden s SME Portfolio growth from $65m to $120m. Integrated / acquired portfolio of $110m. Lead and managed Vero s Construction portfolio growth from $19m to $160m in premiums.

15 Disclaimer This presentation has been prepared by Ensurance Capital Pty Ltd (Ensurance) as a summary only, and does not contain all information about Ensurance s assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to Ensurance s securities. Some of the statements contained in this report are forward looking statements. Forward looking statements include but are not limited to, statements concerning Ensurance s business plans, expected costs, and expected revenues, and other statements which are not historical facts. When used in this presentation, and in other published information of Ensurance, the words such as aim, could, estimate, expect, intend, may, potential, should and similar expressions are forward-looking statements. Although Ensurance believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Ensurance does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this presentation. Recipients of this presentation should carefully consider whether the securities issued by Ensurance are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.