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Global Mobile Operators: Strategies in Insurance and Assistance Product Image

Global Mobile Operators: Strategies in Insurance and Assistance

  • Published: July 2012
  • Region: Global
  • 79 Pages
  • Finaccord

Global Mobile Operators: Strategies in Insurance and Assistance is a report and interactive PartnerBASE dataset that provides a detailed worldwide overview of the fast-growing involvement of mobile operator brands and groups in the fields of insurance and assistance. For 255 brands spread across 70 countries, it outlines their activity and strategic partnerships for the following insurance and assistance product and service categories:

- insurance: mobile phone, mobile gadget, bill payment protection, identity protection, motor, household, travel, accident, health, life;

- assistance: home, legal, medical, road.

Across all 255 brands researched, Finaccord identified a total of over 300 distinct product initiatives and partnerships involving over 100 insurance providers and assistance firms including well-known organisations such as ACE, Allianz Global Assistance, American Assist, Assurant, Asurion, AXA, BNP Paribas Cardif, Chartis, Iké Asistencia, MAPFRE, Marsh and Zurich.

The often vast number of customers of mobile operator brands, typically running into millions or tens of millions, makes them potentially attractive as affinity partners to insurance READ MORE >

0.0 EXECUTIVE SUMMARY

Finaccord's research covers 65 major mobile telecoms groups and 255 country-specific operator brands

Telefónica is one of the few major telecoms groups to run its own captive insurance company

Some mobile operators distribute life insurance policies on behalf of multiple underwriters

The provision of various types of assistance service is particularly strong in Latin America

Mobile telecoms groups and brands are likely to up their game in financial services for several reasons

The current worldwide structure of mobile financial services is both complex and fragmented

In future, leading mobile telecoms groups are likely to work with a smaller number of large providers

1.0 INTRODUCTION

What is this report about?

This study is the first ever worldwide analysis of mobile operators' activity in insurance and assistance

... covering over 300 distinct product initiatives and deals with over 100 partner organisations

Rationale

Mobile operators can be key affinity distribution partners in insurance and assistance

Methodology

Primary research

The research covers 65 mobile operator groups and 255 brands across 70 territories

External sources

Definitions

Payment, banking, insurance and assistance products and services

Other terms

Operating models

Unweighted and weighted share of partnerships

Interactive PartnerBASE™

Finaccord

2.0 GROUP STRATEGY ANALYSIS

Introduction

Summary of groups researched

By total number of subscribers, China Mobile is by far the largest of the 65 groups investigated

The global market for mobile payments

The worldwide market for mobile payments increased by almost 600% between 2008 and 2012...

…with continued strong growth predicted through the first half of the current decade

Group strategic approaches to mobile financial services

The majority of leading telecoms groups have active or planned strategic initiatives for mobile payments...

... although some groups, such as Telenor, seem to devolve strategy to national mobile operator brands

In the developing world, mobile payments have become a feature of daily life for many consumers

The 'low-tech' model will continue to be relevant…

…while 'high-tech' options have yet to live up to perennial expectations …

…and security protocols remain crucial considerations

Many groups use multiple forms of mobile payment, from simple to cutting edge technology

Talktime or call credit transfer remains the simplest means of transferring funds worldwide

Telecoms groups are less likely to enter into tied agreements for mobile banking than for mobile payments

Many mobile telecoms groups offer no unique network-linked mobile banking

Provision of insurance and assistance policies has tended not to be organised on a centralised basis...

... although KDDI's au Insurance is an interesting (and unique) example of an insurance joint venture

Group ownership and partnership strategies in mobile financial services

The creation of captive and joint venture companies is an option for mobile telecoms groups...

... with outright or partial ownership almost inevitably the outcome of centralised decisions

Captives in payments, banking, insurance and assistance

Seven major telecoms groups own captive or joint venture payment or banking entities...

... with a further seven utilising captive (or sister) insurance or assistance providers

Joint ventures in payments, banking, insurance and assistance

At least two dozen formal joint ventures have been created, most focusing on mobile payments

Some, such as Isis, have been configured among two or more mobile telecoms groups...

... while others, like Wanda, involve a mobile telecoms group and a partner from a different sector

A three-way mobile payments joint venture in the UK has been blocked by the Competition Commission

In the shape of Jibun Bank, Japan's KDDI is co-owner of a joint venture retail bank

Strategic partnerships with payment and payment-related technology companies

Leading mobile telecoms groups are forging strategic partnerships with external payment companies

Among the most eye-catching of these are those of Google with Sprint Nextel in the US...

... and those of Western Union with various telecoms groups across a range of territories...

... although a number of other significant examples are also visible elsewhere

Payment companies may complement or substitute for traditional banks, depending on the region

It is intended that the partnership of Visa with Vodafone will cover payments in up to 30 countries

Gemalto is used as a strategic partner by several groups and on a local level by numerous brands…

…while several other technology companies provide support for mobile payments, especially via NFC

Leading groups in South Korea have by necessity forged multiple partnerships

A range of other international organisations offer serious payments competition to telecoms groups

Strategic partnerships with banks

Citibank works as a strategic partner with both Polkomtel and Sprint Nextel

Globacom collaborates for mobile payments with several banks in West Africa

As evidenced by Turkcell's partnerships, mobile payments are already well-established in Turkey

In Brazil, mobile telecoms group Oi has forged a wide-ranging alliance with Banco de Brasil and Cielo

Strategic partnerships with insurance and assistance companies

Telefónica and Vodafone have both established strategic partnerships in this arena...

... and specialist consultancy EIP works with both, most especially within Europe

In future, it is likely that major telecoms groups will seek to offer more products with fewer providers

3.0 BRAND ANALYSIS

Introduction

Summary of brands researched

Provision of insurance and assistance products

Provision rates

More than a third of brands offer mobile phone insurance to their customers…

…whereas more tangential types of policy (such as travel, accident and life) are less common

Various forms of assistance are also present, especially in the Latin American markets

Mobile phone insurance: available from more than two thirds of North American operators

Mobile gadget insurance: provision rates are highest in Europe and the Americas

Bill payment protection insurance: in Ecuador, Movistar bundles this with two other types of cover

Identity protection insurance / assistance: provision appears limited to just two Asian countries

Motor insurance: the Polish brand Claro is one of only two operators distributing motor policies

Household insurance: available from a small number of very large brands, including China Mobile

Travel insurance / assistance: 37% of operators in Latin America offer some form of travel cover

Accident insurance: this product is available in five of the seven geographical regions

Health insurance: in Africa, some combined policies exist that offer health, accident and life cover

Life insurance: basic accidental death cover is sometimes offered to customers without charge

Home assistance: available as an optional extra from around half of mobile brands in Latin America

Legal assistance: the vast majority of assistance packages involve specialist providers

Medical assistance: sometimes provided separately and without charge, especially in India

Road assistance: in the US, only AT&T Mobility appears to have a scheme for road assistance

Miscellaneous insurance / assistance: other propositions include golf insurance and concierge services

Operating models

Around 70% of schemes for mobile phone cover involve a single external partner…

…whilst several brands, including certain Telefónica subsidiaries, make use of captive insurers

Competitor share of partnerships for insurance and assistance products

Mobile phone insurance: Asurion is the policy administrator of choice across North America

Mobile gadget insurance: Liberty Mutual and Zurich are the leading underwriters in this field

Bill payment protection insurance: Assurant benefits greatly from its partnership with TIM in Brazil

Identity protection insurance / assistance: South Korea's Dongbu Insurance is active in this field

Motor insurance: one France Télécom subsidiary makes use of broker Gras Savoye

Household insurance: in weighted terms, this market is dominated by one Chinese underwriter

Travel insurance / assistance: China Mobile acts as a distributor for six underwriters

Accident insurance: ACE is involved with mobile brands in Brazil, Malaysia and the Philippines

Health insurance: the top three providers represent around three quarters of this market

Life insurance: in Brazil, Vivo offers life policies on behalf of two multinational insurers

Home assistance: specialist providers include American Assist and International SOS

Legal assistance: Patrimonial Inbursa leads the field, thanks to its deal with Telcel in Mexico

Medical assistance: top providers include the Apollo Hospitals Group and Religare Technologies

Road assistance: in France, the Orange brand collaborates with Mondial Assistance

Miscellaneous insurance / assistance: several providers offer more than one type of niche product

Future products and planned schemes

Assurant Solutions and Telefónica are expected to broaden their co-operation in Latin America

4.0 BRAND PROFILES

Using the interactive PartnerBASE file

Brands covered by the research

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

2.0 GROUP STRATEGY ANALYSIS

Total value and users of mobile payments worldwide, 2008 to 2012

Total value and users of mobile payments worldwide, 2012 to 2016 (forecast)

Summary of strategic initiatives in mobile payments of leading mobile telecoms groups, 2012

Summary of strategic initiatives in mobile payments of leading mobile telecoms groups, 2012 (cont.)

Summary of strategic initiatives in mobile banking of leading mobile telecoms groups, 2012

Summary of strategic initiatives in mobile banking of leading mobile telecoms groups, 2012 (cont.)

Summary of strategic initiatives in insurance and assistance of leading mobile telecoms groups, 2012

Captive payment, banking, insurance and assistance entities owned by leading mobile telecoms groups, 2012

Joint venture payment, banking, insurance and assistance entities co-owned by leading mobile telecoms groups, 2012

Strategic partnerships formed by leading mobile telecoms groups with external payment and payment-related technology companies, 2012

Strategic partnerships formed by leading mobile telecoms groups with external banks, 2012

Strategic partnerships formed by leading mobile telecoms groups with external insurance and assistance companies, 2012

3.0 BRAND ANALYSIS

Number of mobile operator brands covered by the research, segmented by geographical region, 2012

Multinational telecoms groups with five or more wholly- or partially-owned subsidiary brands covered by the research, 2012

Provision rates for each type of insurance and assistance product by mobile operator brands, 2012

Provision rates for mobile phone insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for mobile gadget insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for bill payment protection insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for identity protection insurance / assistance by mobile operator brands, segmented by geographical region, 2012

Provision rates for motor insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for household insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for travel insurance / assistance by mobile operator brands, segmented by geographical region, 2012

Provision rates for accident insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for health insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for life insurance by mobile operator brands, segmented by geographical region, 2012

Provision rates for home assistance by mobile operator brands, segmented by geographical region, 2012

Provision rates for legal assistance by mobile operator brands, segmented by geographical region, 2012

Provision rates for medical assistance by mobile operator brands, segmented by geographical region, 2012

Provision rates for road assistance by mobile operator brands, segmented by geographical region, 2012

Provision rates for miscellaneous insurance / assistance products by mobile operator brands, segmented by geographical region, 2012

Operating models used by mobile operator brands for each type of insurance and assistance product, 2012

Operating models used by mobile operator brands for each type of insurance and assistance product, 2012 (table)

Weighted competitor share of partnerships with mobile brands for mobile phone insurance, 2012

Weighted competitor share of partnerships with mobile brands for mobile gadget insurance, 2012

Weighted competitor share of partnerships with mobile brands for bill payment protection insurance, 2012

Weighted competitor share of partnerships with mobile brands for identity protection insurance / assistance insurance, 2012

Weighted competitor share of partnerships with mobile brands for motor insurance, 2012

Weighted competitor share of partnerships with mobile brands for household insurance, 2012

Weighted competitor share of partnerships with mobile brands for travel insurance / assistance, 2012

Weighted competitor share of partnerships with mobile brands for accident insurance, 2012

Weighted competitor share of partnerships with mobile brands for health insurance, 2012

Weighted competitor share of partnerships with mobile brands for life insurance, 2012

Weighted competitor share of partnerships with mobile brands for home assistance, 2012

Weighted competitor share of partnerships with mobile brands for legal assistance, 2012

Weighted competitor share of partnerships with mobile brands for medical assistance, 2012

Weighted competitor share of partnerships with mobile brands for road assistance, 2012

Weighted competitor share of partnerships with mobile brands for miscellaneous insurance / assistance products, 2012

4.0 BRAND PROFILES

Screenshot of the interactive brand profile viewer included with this report's PartnerBASE dataset

Note: Product cover images may vary from those shown

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