Home Emergency Insurance and Assistance in Europe Series Prospectus May 2014 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? 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? Does Finaccord have any consumer research on this subject? How can the research be purchased? 3 4 5 6 7 8 9 10 11 12-15 16 17 18 Web: www.finaccord.com. E-mail: info@finaccord.com 2
What is the research? Home Emergency Insurance and Assistance in Europe is a report plus an associated PartnerBASE dataset and market data file about the market for this type of cover in ten countries: Austria, Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland and the UK. In essence, the term home emergency insurance and assistance encompasses policies that are sold on a stand-alone basis, or bundled with utility services, household insurance or banking products, that cover one or more of the following home-related problems: - malfunctioning of gas boilers, gas supply pipes or gas central heating; - problems with plumbing, drainage and water supply pipes; - electrical emergencies and breakdowns. In addition to the overview report, the research can also be acquired for individual countries as separate country-specific reports (plus associated PartnerBASE datasets and market data files) are also available for each of the ten countries covered. Web: www.finaccord.com. E-mail: info@finaccord.com 3
What is the rationale? A number of factors combine to form a firm rationale for an updated series of reports about home emergency insurance and assistance in Europe. First and foremost, this is the only focused research on the subject on a pan-european basis in spite of the fact that the market is estimated by Finaccord to have been worth as much as EUR 3.65 billion across ten European countries in 2013 and that by 2017 its value will have exceeded EUR 4 billion. Moreover, home emergency cover potentially represents a development opportunity for a variety of different distributors and providers. Over and above dedicated assistance firms that may specialise exclusively or in part in the field of home assistance, insurance companies can also develop home emergency insurance and assistance propositions that they can combine within their regular household insurance, sell on a stand-alone basis or distribute through other organisations. In addition, as distributors and sometimes as service providers, energy and water firms can also enhance their core revenues through cross-selling home emergency cover. Indeed, the residential services segment of British Gas contributed GBP 1.66 billion in gross revenues out of total gross revenues of GBP 14.23 billion in 2013, thereby making up 11.6% of the total. Furthermore, the same segment generated GBP 318 million in operating profits in the same year, accounting for 30.9% of total operating profits which amounted to GBP 1.03 billion. Web: www.finaccord.com. E-mail: info@finaccord.com 4
What methodology has been used? The research for this series of reports extends to 730 organisations in total, breaking down by type and country as depicted in the graphics overleaf, thereby accounting for the vast majority of entities likely to participate in the distribution of home emergency insurance or assistance in each country. Among other data points, the research embraces the following information for each of the entities covered by the survey: whether any type of home emergency insurance or assistance is provided and, if so, whether this takes the form of i) electrical cover, ii) cover related to gas boilers, gas supply pipes or gas central heating, iii) cover related to plumbing, drainage or water supply pipes, and / or iv) fully comprehensive cover; if so, whether cover is packaged automatically or cross-sold as an optional extra; if so, how through single or multiple external partners, through a captive partner, through an internally-managed scheme or by means of some other operating model; if through external entities, the identity of the partner(s) used in each instance. Web: www.finaccord.com. E-mail: info@finaccord.com 5
How do organisations surveyed break down? Switzerland, 30 UK, 82 Austria, 48 Belgium, 62 Energy companies, 155 Spain, 88 France, 84 Poland, 47 Netherlands, 63 Germany, 137 Household insurance brands, 415 Water companies, 160 Italy, 89 The organisations covered by the survey extend to 730 actual or potential participants in the market for home emergency insurance or assistance in Europe. The full list of these organisations can be obtained from Finaccord if needed. Web: www.finaccord.com. E-mail: info@finaccord.com 6
What is the structure of the overview report? 0. Executive Summary: providing a concise evaluation of the principal findings of the report. 1. Introduction: offering rationale, description of methodology and some definitions. 2. European Overview: comprising an overview of the European market including the size of the market for home emergency insurance and assistance in 2013 split by policy type and by country, measured both by value and volume plus a definitive overview of the extent to which energy firms, water companies and household insurers actually offer home emergency insurance or assistance and, for those that do, the operating models and partners that they utilise for this purpose. Market value data is also provided for 2009 and forecast to 2017 in order to illustrate growth trends. 3. Austria: an in-depth analysis of the market for home emergency insurance and assistance in Austria including: housing stock data including the split between owner-occupied, privately-rented and social housing units; provision rates for home emergency cover, segmented by type of cover, via energy firms, water companies and household insurers; split of schemes between cover packaged automatically and cover cross-sold as an optional extra; assessment of distribution via alternative channels including gas boiler manufacturers, direct sales and automotive clubs. 4-12: Belgium, France, Germany, Italy, Netherlands, Poland, Spain, Switzerland and the UK (for all, contents as for Austria). Web: www.finaccord.com. E-mail: info@finaccord.com 7
What are the key features of the research? Key features of this series of reports include: quantification of the market size for home emergency insurance and assistance: how much is the market worth across the ten countries considered in Europe, how does it break down by policy type and by country, and how is it likely to have grown by 2017? identification of providers of home emergency insurance and assistance that have established relationships with energy firms, water companies and household insurers and calculation of their share of partnerships in both unweighted and weighted terms; analysis of the degree to which home emergency cover is provided automatically or cross-sold as an optional extra this has a very significant impact on household penetration rates and market values in each country; assessment of the potential for marketing home emergency insurance and assistance through alternative channels including online aggregators and brokers, other online brands and banking products as well as gas boiler manufacturers, direct sales and automotive clubs. Web: www.finaccord.com. E-mail: info@finaccord.com 8
How can the research be used? You may be able to use these reports plus the PartnerBASE datasets and market data files that accompany them in one or more of the following ways: appreciate the size of the opportunity in the market for home emergency insurance and assistance in Europe: in aggregate, this is a substantial market; understand how dynamic competitors are helping the sector to grow at a rate in excess of the underlying markets for utilities services and household insurance in a number of countries; assess the position of significant national and international competitors such as Allianz Global Assistance, Asitur Asistencia, AXA Assistance, British Gas Home Services, Deutsche Assistance, Eurocross Assistance, Europ Assistance, FIDELIA Assistance, HomeServe, Home Energy Services, Inter Mutuelles Assistance, MAPFRE Asistencia, Mutuaide Assistance, ROLAND Assistance and Servihogar24; evaluate the potential for marketing home emergency cover via means other than the core distribution channels in each country. Web: www.finaccord.com. E-mail: info@finaccord.com 9
How can the PartnerBASE be used? Filter by type of organisation Select country Search by type of policy Organisation Type Country ELECTRICAL EMERGENCY AND BREAKDOWN COVER Product Type of provision Operating model Partner(s) offered? GES Seguros Household insurers Spain Yes Automatically included Single external provider Asitur Asistencia Groupama Household insurers France Yes Optional extra Captive provider Mutuaide Assistance Grupo Caser Household insurers Spain Yes Automatically included Internal Helvetia Household insurers Spain Yes Automatically included Single external provider Asitur Asistencia Iberdrola Energy companies Spain Yes Optional extra Internal + external provider MAPFRE La Banque Postale Assurances Household insurers France Yes Optional extra Captive provider Mutuaide Assistance Look up specific organisations View type of provision Choose operating model Identify product partners Web: www.finaccord.com. E-mail: info@finaccord.com 10
Who can use the research? 1. Assistance companies: these studies constitute a unique guide to an under-researched yet significant and continually evolving market be fully appraised of what growth in these markets could mean for your organisation; 2. Insurance companies: as a concept that can be made distinct from regular household insurance, home emergency insurance and assistance can either be sold stand-alone or packaged within household insurance policies; 3. Electricity, gas and water companies: growth in the market for home emergency cover, allied to apparently high profit margins, presents a revenue enhancement opportunity for electricity, gas and water companies as well as insurance and assistance firms; 4. Management consultancies: are you helping an insurance or assistance provider to develop its business in Europe, or are you advising an energy or water firm with regards to how it can improve its profitability? If so, this research will provide you with important insights into the market for home emergency insurance and assistance. Web: www.finaccord.com. E-mail: info@finaccord.com 11
What are some of the key findings? 1. Electricity and gas companies in France are more likely to offer disaggregated policies than comprehensive cover % of energy companies offering cover by type 100% 80% 60% Comprehensive Gas / boiler 40% Plumbing / water Electrical 20% 0% Austria Belgium France Germany Italy N'lands Poland Spain Switzerland UK Source: Finaccord PartnerBASE Web: www.finaccord.com. E-mail: info@finaccord.com 12
What are some of the key findings? (cont.) 2. By cover type, the value of the market in Belgium is mostly due to comprehensive policies and by distribution channel, policies bundled with household insurance make up the majority % split of market value 100% 80% Electrical, 2.1% Gas / boiler, 9.2% All other policies, 43.0% 60% 40% 20% Comprehensive, 88.7% Policies bundled with household insurance, 57.0% 0% Cover type Distribution channel Source: Finaccord PartnerBASE Web: www.finaccord.com. E-mail: info@finaccord.com 13
What are some of the key findings? (cont.) 3. Energy companies, water companies and household insurance brands organise home emergency cover through a variety of means Austria Belgium France Germany Italy Netherlands Poland Spain Single external provider Multiple external providers Captive provider Joint venture provider Internal Other Undisclosed Switzerland UK Source: Source: Finaccord PartnerBASE 0% 20% 40% 60% 80% 100% % split of operating models Web: www.finaccord.com. E-mail: info@finaccord.com 14
What are some of the key findings? (cont.) 4. Key findings from the executive summary of the overview report include: the value of home emergency insurance and assistance across the ten countries in scope was EUR 3.65 billion in 2013 up from EUR 3.09 billion in 2009, meaning that it grew at a compound annual rate of 4.28% in nominal terms between 2009 and 2013; the overall uptake of home emergency insurance is highest in the Netherlands (where, in 2013, around 80.9% of occupied dwellings were covered by one or more policies), and the UK has the highest number of policies per insured dwelling (namely 2.27 in 2013); the provision of comprehensive home emergency cover by energy companies is highest in Italy, where such policies are offered by 76.9% of the energy companies surveyed, whereas dedicated gas or electrical cover is most readily available from energy companies in France (followed by Spain and then the UK); the availability of comprehensive cover via household insurance brands is highest in Italy, where 96.8% of the household insurance brands contacted offer this product, followed by Poland (96.3%), Belgium (95.8%) and the Netherlands (90.9%). Web: www.finaccord.com. E-mail: info@finaccord.com 15
What is the cost? Home Emergency Insurance and Assistance in Europe and the related country-specific reports are available as a standard PDF document. The PartnerBASE datasets and market data files that accompany them at no further charge are in Excel format. Costs for this research set are as follows: Home Emergency Insurance and Assistance in Europe GBP 2,995 Home Emergency Insurance and Assistance in Austria GBP 595 Home Emergency Insurance and Assistance in Belgium GBP 595 Home Emergency Insurance and Assistance in France GBP 795 Home Emergency Insurance and Assistance in Germany GBP 795 Home Emergency Insurance and Assistance in Italy GBP 795 Home Emergency Insurance and Assistance in the Netherlands GBP 595 Home Emergency Insurance and Assistance in Poland GBP 595 Home Emergency Insurance and Assistance in Spain GBP 795 Home Emergency Insurance and Assistance in Switzerland GBP 595 Home Emergency Insurance and Assistance in the UK GBP 795 VAT at the prevailing rate will be added to the basic price except for where the request is for hard copy only. Costs quoted are for a single site user license only. For a corporate user license, please see the next slide for further details. Printing and postage costs of GBP 30 will be added for delivery of hard copy if needed. Invoices can be paid in EUR, at the prevailing exchange rate, if preferred. Web: www.finaccord.com. E-mail: info@finaccord.com 16
Does Finaccord have any consumer research on this subject? Yes, we do. The reports listed below are based exclusively on consumer research commissioned by Finaccord and covering a representative sample of respondents (1,000) in each country covered. These will be helpful for understanding other metrics such as consumers' usage of distribution channels and claims frequency, as well as take-up rates. Again, a separate series prospectus and set of tables of contents are available for these which can be downloaded either from the relevant pages of the Finaccord website or by contacting Finaccord directly. Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in Europe GBP 2,495 Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in France GBP 595 Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in Germany GBP 595 Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in Italy GBP 595 Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in Poland GBP 595 Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in Spain GBP 595 Home Assistance Metrics: Consumer Approaches to Home Emergency Insurance in the UK GBP 595 Web: www.finaccord.com. E-mail: info@finaccord.com 17
How can the research be purchased? Simple. Just go to the relevant area of the Finaccord web site available at http://www.finaccord.com/order_home_emergency_insurance_assistance.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 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. Web: www.finaccord.com. E-mail: info@finaccord.com 18