E-Distribution and Trading in the Simple Commercial Space Nick Giddings Chief Executive Officer PowerPlace Simon Hughes Sales & Marketing Director Open GI Definition of Term (i.e. what is E-Trade ?) • A method of trading whereby technology is used to connect buyers and sellers Noting • The extent to which technology is utilised in this is variable • The more complex the “product”, the less end-to-end automation E-Trade might include any of the following: • Systemic data capture • Auto-rating of a product • Data connectivity in the supply chain • B2B / B2C ecommerce All of the above “bring together buyers and sellers” • Personal lines insurance is almost fully e-traded, end-to-end • Web is the predominant channel • Price comparison web sites dominate private car – Initiate close on 60% of all new business sales – 2013 estimated to generate c. £7bn of new business sales Current Trends: The Move to Mobile Current Trends: Manifestation of Mobile in Personal Lines • Confused.com statistics: – Since Jan-12, 20% decline in desktop visitors – Since Jan-12, 10% increase in mobile & tablet visitors – Q1 2012 – Q2 2013, mobile visitors grown from 6% to 15% Segmentation of the SME Market Source: Datamonitor, UK SME Insurance 2012 Report, published November 2012 Are Brokers Losing Market Share of SME ? Source: Datamonitor “Targeting SMEs in UK General Insurance” (2004) Source: Datamonitor “Targeting SMEs in UK General Insurance”(2007) Source: Datamonitor “UK SME Insurance” (2011) SME Buying Behaviour Source: Datamonitor, SME Insurance Survey 2012 • For Brokers – – – – – Access to a market of auto-rated SME products Comparative rating / covers Fully integrated (Open GI only) Out-of-the-box ecommerce strategy Mobile-ready • For Providers – – – – – Instant distribution to an agency base of 1,200 Agency Management and cash collection Real-time rating and document control E-enablement of products Multi-channel distribution Channel Segmentation PowerPlace Live Policy Count by Channel In Office Broking • Growth as Brokers look for efficiencies Internet • 100% growth in 2years • vSME biased