富裕層向け家財保険の市場 2006

Abstract

Overview

Introduction

A report examining the competitive strategies at work in attracting the high and mid-net worth customer groups in the household insurance market

Table of Contents

• CHAPTER 1 MARKET CONTEXT
  • Introduction
    • High Net Worth insurance products distinguish themselves from standard policies by offering a higher level of cover
    • Who are HNW individuals?
      • HNW providers are also targeting the 'emerging affluent' and MNW groups
  • The number of HNW individuals rose to almost 1 million in 2004
    • Datamonitor's Global Wealth Model generates HNW and MNW populations
    • The total number of HNW individuals grew by 11.7 per cent in 2004
    • HNW insurance providers unanimously believe that product penetration needs to increase
      • Providers need to raise the profile of HNW insurance and improve product awareness
      • Penetration levels remain at around 25 per cent
      • Insurers are hoping to improve awareness using a variety of tactics
    • HNW individuals are frequently underinsured, and without a specialist policy, this problem is greatly exacerbated
      • Affluent homeowners often require specialist advice on their insurance requirements
    • Premium rates have been flat in 2004 and 2005, with declines on some business
    • Insurers recorded a less favorable claims experience in 2005
      • Despite a larger claims bill, the market remains profitable
      • In 2006, insurers will have to ensure that they have priced correctly
  • Mid Net Worth insurance caters for mass affluent consumers
    • What is Mid Net Worth insurance?
      • MNW policies also appeal to customers who want a better product, but would rather keep their policy simple
      • Reflecting the fact that MNW consumers expect a less bespoke service, MNW products are more commoditized than HNW products
    • The growth of MNW individuals outstripped HNW growth in 2004
• CHAPTER 2 DISTRIBUTION
  • Introduction
  • Brokers remain dominant in HNW distribution
    • Brokers control around 85 per cent of distribution
  • However, as insurers target the emerging mass affluent, fundamental changes to product distribution and marketing could result
    • Product development has occurred with HNWs in mind
      • Insurers disagree on the potential of the Internet in HNW distribution
      • As direct platforms look set to grow, direct insurers may have anticipated the market well
      • Hiscox leads the market for direct HNW business
    • Banks are targeting the HNW insurance market
    • FSA regulation has pushed up the cost of business for brokers in the HNW market
• CHAPTER 3 CUSTOMER FOCUS
  • Introduction
  • While the HNW market has a significant potential customer base, product penetration is low
  • Revealing the limitations of standard policies to affluent homeowners is usually a very powerful selling strategy
    • Stressing the comprehensive nature of cover reassures reluctant customers
  • Higher-end consumers are likely to be attracted by HNW services
    • Crime statistics suggest that incidents of cheque and credit card theft are declining, however many crimes go unreported and the severity of this problem should not be underestimated
      • Crime statistics reveal a decline in aggravated burglary and car-jacking
      • HNW product development does not reflect the fact that many offences are occurring less frequently
    • Ensuring a good claims experience is essential
    • Exploring new distribution methods may lead to an increase in penetration
      • Bancassurers are increasing their focus on HNW
    • Most HNW individuals are over 75, however younger demographic bands are growing proportionately
• CHAPTER 4 COMPETITIVE DYNAMICS
  • Introduction
  • Competition in the UK market was intense in 2004 and 2005
    • Insurers have doubts over whether such intense competition is sustainable
      • Some competitors will struggle to make a profit in 2006
    • Several competitors are looking to grow their HNW books, but given the current market conditions, this is unlikely to be successful
    • The British HNW insurance market is considerably more competitive than others in Europe
  • The market is split between composites and specialists
    • HNW players can be split into two key groups
    • Hiscox has expanded into direct distribution channels, while retaining a broad customer base
      • Hiscox continues to prioritize the provision good service
    • Norwich Union is hoping to increase sales of its Tapestry product through corporate partnership deals
    • Zurich aims to attract consumers by enabling clients to combine various policies into one package
    • Chubb's Masterpiece policy remains one of the most exclusive on the market, aimed at the top HNW individuals
      • Chubb's identity fraud and family protection options also cover policyholders for risks ranging from kidnapping to car-jacking
    • Oak Underwriting focuses on ultra high net worth households
    • Still relative newcomers, AIG has succeeded in growing its business, but has priced low
      • AIG offers a number of additional cover options for the more affluent HNW individuals
    • HSBC Insurance is looking to expand into the market
    • Sterling offers comprehensive HNW cover, or customers can choose a more basic policy and select extra cover options
    • AXA, Royal & SunAlliance and MMA supplement their household offerings with a HNW product
• CHAPTER 5 THE FUTURE DECODED
  • Introduction
  • The HNW insurance market is expected to remain highly competitive in 2006
    • Premium rates flattened in 2005, with some reductions
    • Rates are expected to remain flat in 2006
      • However, as the market has produced good returns for several consecutive years, rates may not rise in 2006
  • The number of affluent homeowners looks set to rise, offering significant growth opportunities for insurers
    • The number of HNW individuals is forecast to grow by an annual average of 8.1 per cent until 2009
    • The number of MNW individuals will continue to grow
• CHAPTER 6 APPENDIX
  • Research methodology
    • Global Wealth Model
      • The UK sub model
      • Global sub model
      • Forecasting methodology
      • Continuous refinement to the understanding of liquid wealth distribution
      • Datamonitor's wealth numbers compared with other wealth numbers
      • Further information
  • Definitions
    • CAGR
    • HNW
    • Liquid assets
    • Mass affluent
    • Mass market
  • Future readings
  • Relevant links
  • Datamonitor's custom research capabilities
  • SPP writing team
• List of Tables
  • Table 1: Number of UK HNW individuals by liquid asset band, 2000-4
  • Table 2: The number of MNW individuals in the UK by liquid asset band, 2000-4
  • Table 3: Selected number of offences from the British Crime Survey 2000-4
  • Table 4: UK HNW individuals by age band, 2000-4
  • Table 5: Forecast number of HNW individuals by liquid asset band, 2004-9f
  • Table 6: Forecast number of MNW individuals by liquid asset band, 2004-9f
  • Table 7: Countries that can be modeled using Datamonitor's Global Wealth Model
• List of Figures
  • Figure 1: Methods used to identify HNW and affluent consumers
  • Figure 2: The number of HNW individuals increased in 2004, driven by growth in the ｣200K-｣250K asset band
  • Figure 3: The number of MNW individuals has grown rapidly since 2002
  • Figure 4: Crimes such as aggravated vehicle taking and credit card fraud declined in 2005
  • Figure 5: The majority of HNW individuals are over 75, however in 2004 the 18-45 age band grew significantly
  • Figure 6: Composite and specialist insurers both compete in the HNW market, but often target different ends of the spectrum
  • Figure 7: Steady growth of HNW numbers is forecast to increase between 2006 and 2009
  • Figure 8: The number of MNW individuals is forecast to grow by an annual average of 7.0 per cent to 2009
  • Figure 9: Datamonitor's core consulting capabilities