Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets

Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets

© Finaccord Ltd., 2013

Expertise in financial services Web: www.finaccord.com. E-mail: [email protected] 1

Insurance and Assistance linked

to Payment Cards and Bank

Accounts in Major Global Markets

Report prospectus

October 2013

http://www.finaccord.com/

mailto:[email protected]




Prospectus contents

What is the research?

What methodology has been used?

Which types of cover does the report identify?

How are the payment card and bank account products segmented?

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?

What other reports are available on this subject

How can the research be purchased?

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What is the research?

Finaccord’s report titled Insurance and Assistance linked to Payment Cards and Bank Accounts in

Major Global Markets is a comprehensive study of the markets for insurance and assistance linked

to banking products in ten countries, namely Australia, Brazil, Canada, China, India, Japan, Mexico,

South Africa, South Korea and the US. This research indicates that the combined market, which is

composed of a series of niche covers designed to enhance the revenues derived by banks from

their payment card and current account operations, was worth some USD 14.8 billion in 2013.

Moreover, with strong underlying growth in payment card issuance in some countries and with

insurance and assistance providers showing creativity in structuring new types of policy to cater for

emerging customer segments, this sector appears to be destined for continuing growth.

The report, along with its accompanying PartnerBASE™ dataset, harnesses the results of

extensive primary research that covers over 5,000 payment card and bank account products issued

by over 300 banks and other organisations across the ten countries. Finaccord’s research focuses

on 30 specific types of insurance and assistance enhancement, grouped within seven broad

categories of cover, namely: accident / health cover; creditor cover; personal / identity protection

cover; shopping cover; travel cover; other cover; concierge services. In total, the research details

almost 15,000 individual covers, thereby documenting the active partnerships of close to 300

providers of packaged insurance and assistance, ranging from global insurance brands to local

insurance and assistance companies.






What methodology has been used?

The majority of Finaccord’s investigation into the provision of insurance and assistance linked to

payment cards and bank accounts in the ten major global markets was carried out between July and

September 2013, and focused on all major consumer financial services entities involved in either the

issuing of payment card products or the provision of transactional bank accounts. Among other data

points, the research details the following information for each of over 5,000 products analysed:

• whether the payment card product or bank account offers each particular type of cover;

• if offered, whether this occurs through a captive or joint venture partner, a partnership with a

single external partner, a partnership with multiple external partners, a partnership with a broker

or another more complex operating model;

• if offered, the name(s) of the partner(s);

• if offered, the name of the parent company or group to which each partner belongs.

In the light of the fact that the identities of the partners used to provide packaged enhancements to

payment cards and bank accounts are often not revealed in the public domain, with the policies

instead being offered on a ‘white-labelled’ basis in the name of the bank or other card issuer

concerned, Finaccord has undertaken comprehensive primary research to ensure that the partner(s)

used for each policy is disclosed for over 98% of all covers included in the research.






Which types of product does the report cover?

ACCIDENT / HEALTH COVER

Accidental death insurance

Health / hospital cash plans

Health assistance

Personal accident insurance

CREDITOR COVER

Creditor insurance – life / permanent disability

Creditor insurance – temporary incapacity / unemployment

PERSONAL / IDENTITY PROTECTION COVER

ATM cash theft insurance

Card protection insurance

Handbag / wallet insurance

Identity protection assistance

Identity protection insurance

SHOPPING COVER

Extended warranty

Price protection insurance

Purchase protection insurance

TRAVEL COVER

Travel accident insurance

Travel assistance

Travel health insurance

Travel inconvenience insurance

Comprehensive travel insurance

OTHER COVER

Car hire insurance

Home assistance

Legal assistance

Legal expenses insurance

Missed event insurance

Mobile gadget insurance

Mobile phone insurance

Personal liability insurance

Road assistance

Miscellaneous other insurance and assistance

CONCIERGE SERVICES





Expertise in financial services Web: www.finaccord.com. E-mail: [email protected]

100%

80%

60%

40%

20%

0%

% split of banking products analysed

Credit

cards

All other

products

Standard

Co-

branded

Retailer

Affinity

Standard

Premium

Product

function

Product

type

Product

level

6

How are the payment card and bank

account products segmented?

Australia, 171

Brazil, 576

Canada, 254

China, 1,022

India, 254 Japan, 1,133

Mexico, 204

South Africa, 66

South Korea, 1,043

US, 285

Note - ‘all other products’ in the ‘product function’ column include debit cards, multi-function cards, prepaid cards and packaged accounts.

Source: PartnerBASE






What is the report structure?

Executive Summary: provides a concise evaluation of the report’s principal findings.

Introduction: discusses rationale, research methodology, sample breakdown and definitions.

Overview: features a comparative overview of the ten markets for insurance and assistance linked to

payment cards and bank accounts, including a calculation of the approximate market values for

2013 segmented by country and by type of cover; in addition, this chapter also presents a

comparative analysis of the penetration rates for each specific type of insurance and assistance

cover in each country, and identifies which insurance and assistance providers are active in this

packaged arena on a multi-country basis.

Specific country chapters (10): for each of the ten countries covered, these chapters provide an in-

depth analysis of the market for insurance and assistance linked to payment cards and bank

accounts, including: introduction to the banking and payment card sectors; detailed overview of the

packaged insurance and assistance covers offered; detailed commentary concerning the operating

models and competitor share of partnerships for the provision of insurance and assistance linked to

payment cards and bank accounts; estimates for the 2013 market size in terms of gross written

premiums and other revenues, segmented by broad type of cover.






What are the key features of the research?

Key features of this report include:

- quantification of the market size and segmentation for insurance and assistance linked to payment

cards and bank accounts: how much is the market really worth across the countries considered?

- analysis of the many types of insurance and assistance policy marketed in each country and how

the risks covered vary from one country and distributor to another;

- consideration of the role of centralised payment card issuing entities in each country and the

degree to which individual banking institutions are concluding their own agreements for card-related

insurance and assistance over and above the basic levels of cover already provided;

- calculation of provider share of partnerships based on number of relationships: which providers of

insurance and assistance policies have been successful in establishing relationships with banking

institutions and other card issuers or distributors and how does this vary by country?

- availability of an accompanying PartnerBASE™ database that details each of close to 15,000

insurance or assistance enhancements to over 5,000 payment cards and bank accounts analysed.






How can the research be used?

You may be able to use this report and the accompanying PartnerBASE™ dataset in one or more of

the following ways:

• to evaluate the magnitude of the opportunity represented by insurance and assistance linked to

payment cards and bank accounts across these ten countries.

• to gain access to a single comprehensive source of information that provides both the detail and

contextual analysis for all insurance and assistance enhancements logged;

• to identify opportunities to develop new forms of insurance and assistance linked to payment

cards and bank accounts in line with the marketing strategies of banks and other payment card

issuers across these ten major global markets;

• to understand the supply structure for insurance and assistance enhancements and learn how the

market segments between international specialists, local providers and captive underwriters;

• to gain insight into the international presence of leading protagonists in this sector, including ACE,

AIG, Allianz, Assurant, AXA, BNP Paribas Cardif, Chubb, International SOS, MAPFRE, QBE, RSA

and Zurich.





Expertise in financial services Web: www.finaccord.com. E-mail: [email protected]

EXTENDED WARRANTY

Organisation Card name Country Product Operating model Partner(s) UHC(s)

offered?

ANZ ANZ Rewards Platinum Australia Yes External underwriter Zurich Zurich

BMO BMO CashBack Canada Yes External underwriter Allianz Allianz

Credomatic Tarjeta Plaza Mayor Mexico Yes External underwriter Iké Asistencia Iké Grupo Empresarial

Absa Platinum Credit Card South Africa Yes External underwriter Genric Genric

PNC Bank PNC CashBuilder Visa USA Yes External underwriter Indemnity Insurance ACE

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How can the PartnerBASE™ be used?

In total PartnerBASE™ covers 30 main forms of insurance and assistance and includes the facility

to filter products by country, network, function, type and level.

Source: Finaccord PartnerBASE

Filter by name

of card

Choose operating model Identify product

partners

Look up specific banks

and other card issuers

Search by

type of policy Select country

Identify ultimate

holding companies of

product partners






Who can use the research?

1. Insurance providers: this research is a unique guide to an important strategic issue in personal

lines insurance - be fully appraised of what growth in the market for insurance and assistance

linked to bank accounts and payment cards could mean for your organisation;

2. Assistance companies: as banks and other consumer finance organisations become more

adept at targeting their marketing towards specific consumer groups, opportunities will arise for

developing new assistance concepts to be promoted in conjunction with these products;

3. Banking institutions and other card issuers: the comprehensive insights contained within this

report will help you to evaluate the insurance and assistance benefits packaged automatically

with your own payment card and bank account products, and will better inform your strategy for

enhancing core revenues through the cross-selling of optional policies;

4. Management consultancies: are you helping an insurance or assistance company with its

bancassurance strategy? Understand the current status of insurance and assistance linked to

payment cards and bank accounts in these ten major global markets, saving time and effort on

researching the subject yourself.






What are some of the key findings?

1. The number of credit cards per capita reached more than 2.0 in

five countries in 2013 but remained below 1.0 in the other five

Source: Finaccord analysis of various sources

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Credit and other pay later cards issued per capita

2009 2010 2011 2012 2013

Australia

South Africa, China, Mexico India

US

Brazil, Japan, Canada, South Korea






What are some of the key findings? (cont.)

2. In Canada, several different types of cover are packaged or cross-sold with bank

accounts and payment cards with a relatively high degree of frequency.

Note – the Canadian research found no provision of ATM / cash theft insurance, card protection insurance, handbag / wallet insurance,

identity protection insurance, home assistance, missed event insurance, mobile gadget insurance or personal liability insurance

Source: Finaccord PartnerBASE

% of all payment cards and bank accounts analysed carrying or with option to carry each type of cover

0% 20% 40% 60% 80% 100%

Creditor insurance - Life / PD

Creditor insurance - TI / UN

Purchase protection insurance

Extended warranty

Car hire insurance

Identity protection assistance

Travel accident insurance

Travel insurance - comprehensive

Travel assistance

Travel health insurance

Travel inconvenience insurance

Price protection insurance

Concierge services

Road assistance

Health assistance

Miscellaneous other

Health / hospital cash plans

Personal accident insurance

Legal assistance

Legal expenses insurance

Accidental death insurance

Mobile phone insurance

0.8%0.8%2.0%

4.7%5.5%5.5%5.9%6.7%

8.7%11.8%

13.4%19.7%20.5%21.3%

35.4%35.8%35.8%

44.9%54.7%

61.4%89.2%89.2%






3. Most covers are provided through a single, external insurance or assistance

partner, and the use of captive partners varies significantly between markets

Source: PartnerBASE

External provider

Multiple external providers

Captive provider

Joint venture provider

External broker

Captive broker

Other

Undisclosed


0% 20% 40% 60% 80% 100%

Australia

Brazil

Canada

China

India

Japan

Mexico

South Africa

South Korea

US

Average

% split of operating models across all types of insurance and assistance







• at around USD 5.55 billion, Finaccord estimates that 37.6% of the total market value across the

ten countries is due to policies paid for separately by the customers themselves with the balance of

USD 9.23 billion (62.4%) funded by banks plus other card issuers and distributors as free cover

packaged automatically with banking products;

• card protection insurance is available in conjunction with over 80% of products analysed in Brazil

and Mexico, but was not detected at all in Canada, South Korea or the US;

• in contrast, comprehensive travel insurance enjoys a degree of penetration as a card benefit

across all countries with the highest rates of availability recorded in Japan and South Africa;

• innovative forms of packaged insurance or assistance classified as 'miscellaneous other' and that

are present in just one of the ten countries are bill protection insurance (Australia), crime victim

insurance (Japan), face insurance (South Korea), golf and tennis insurance (Japan), replacement

driver assistance (Brazil), seat belt insurance (Japan) and youth assistance (Brazil).

4. Key findings from the report’s executive summary include:






What is the cost?

Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets is

available as a standard PDF document and / or hard copy. The PartnerBASE™ that accompanies

it at no further charge is in Excel format. Costs for this study and other closely related international

reports are as follows:

VAT at the prevailing rate will be added to the basic price except for clients based in the UK - costs quoted are

for a single office / single country corporate license only - for other corporate license options, please see the

next slide for further details - invoices can be paid in EUR or USD at the prevailing exchange rate, if preferred

REPORT COST *

GBP 3,995

GBP 2,495

GBP 2,495

GBP 2,995

GBP 1,795

GBP 1,995

GBP 2,495

GBP 2,495

Insurance and Assistance linked to Bank Accounts and Payment Cards in Major Global Markets

Insurance and Assistance linked to Bank Accounts and Payment Cards in Northern, Central and Eastern Europe

Insurance and Assistance linked to Bank Accounts and Payment Cards in Southern and Western Europe

Travel Insurance and Assistance in the Asia-Pacific Region

Travel Insurance and Assistance in the Middle East

Travel Insurance and Assistance in North and Latin America

Travel Insurance and Assistance in Northern, Central and Eastern Europe

Travel Insurance and Assistance in Southern and Western Europe






Note that the following country-specific reports about insurance and assistance linked to payment

cards and bank accounts are also available:

Australia GBP 495 Germany GBP 495 Romania GBP 495

Austria GBP 495 India GBP 495 Russia GBP 495

Belgium GBP 495 Ireland GBP 495 South Africa GBP 295

Brazil GBP 595 Italy GBP 495 South Korea GBP 995

Canada GBP 595 Japan GBP 995 Spain GBP 495

China GBP 995 Mexico GBP 495 Sweden GBP 495

Czech Republic GBP 495 Netherlands GBP 495 Switzerland GBP 495

Denmark GBP 495 Norway GBP 495 Turkey GBP 495

Finland GBP 495 Poland GBP 495 UK GBP 495

France GBP 495 Portugal GBP 495 USA GBP 795

Insurance and Assistance linked to Payment Cards and Bank Accounts in...

What other reports are available on this subject?

VAT at the prevailing rate will be added to the basic price except for clients based in the UK - costs quoted are

for a single office / single country corporate license only - for other corporate license options, please see the

next slide for further details - invoices can be paid in EUR or USD at the prevailing exchange rate, if preferred






How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord web site available at

www.finaccord.com/order_eu_br.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.



http://www.finaccord.com/order_eu_br.htm







Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets

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Transcript of Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets