The future of bancassurance:
Rebuilding confidence
David Angulo, Aviva Europe Bancassurance Director
Monday 7th June 2010
page 1
Bancassurance today
BANKS
MACROECONOMICS
REGULATION
CUSTOMER
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The environment
Macroeconomics:
Banking industry:
• Public accounts turmoil
• Capital / P&L constrains
• Unemployement
• Restructuring underway
•Volatility of financial markets
• Potential liquidity issues
BANCASSURANCE
Regulation:
Customer:
• Solvency II
• Demand for protection
• Basel II & III
• Savings propensity
• Capital requirements
• Looking for guarantees
Monday 7th June 2010
page 3
Aviva 2009 performance
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The European market
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Aviva clear strategic delivery
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Aviva Q1 2010 highlights
• Q1 2010 16% growth of life business compared to previous quarter
• Aviva Europe Bancassurance grew 48% from the previous quarter up to £2.611m with
different performance through out the European markets and 20% growth from Q1 2009
• Group margin in line with full year 2009
• IGD solvency surplus at £4.400m after deducting final dividend (FY:£4.500m)
Strong growth of volumes in
life business in Q1 2010 and
maintained focus on capital
resources
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Macroeconomics & political situation
MACROECONOMICS
UNCERTAINTY
Unpopular reforms and political actions
are being triggered by the current
economic situation and governments
should take the lead to promote private
savings
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The banking industry
UNCERTAINTY
BANKS
Banks need additional sources of
profit including general insurance
business while margins are under
pressure and lending activity is at very
low level.
The final outcome of consolidation
process is still unknown
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The customer
Given the current economic situation
customers with increased savings
propensity show a demand for
protection a savings business
providing guarantees
UNCERTAINTY
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CUSTOMER
Regulation
Uncertainty generated by regulation
evolution in banking and insurance
industries with potential increased
capital requirements foreseen in the
near future
REGULATION
UNCERTAINTY
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Foundations for bancassurance remain the same
BACK TO BASICS
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PROFITABILITY
INTEGRATION
EFICIENCY &
EXCELENCE
SIMPLICITY
BANCASSURANCE
The future of bancassurance
BANCASSURANCE
Protection
Joint venture vs.
Distribution
agreement
General insurance
Specific savings
Demand:
• Protection
• Guarantees
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Summary of bancassurance
• Bancassurance can cover some of the shortfall in banking P&L
• Back to basics and focus on capital and results remain in current situation
• Long term savings picking up compared to previous year
• Potential to develop General insurance
• Retention of current portfolios important in a difficult new business market
• Market consolidation will change banking landscape in Europe
• Regulatory changes may affect the participations of banks in insurance business
• Uncertainty is driving customer demands
• Governments should promote long term savings
and pensions in current environment
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Bancassurance landscape to change in
the medium term driven by consolidation
and regulation but will remain as a
relevant channel with additional potential
to develop GI
“Often the difference between a successful person
and a failure is not one has better abilities or ideas,
but the courage that one has to bet on one's ideas,
to take a calculated risk - and to act.”
Andre Malraux (French historian, novelist and
statesman 1901-1976)
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© Aviva plc