2. 2012 Fundamental questions bnp paribas CardiF 02 a 03
40YEARS
OFEXISTEnCE
ASTRONg
ASSET
FORTHEGROUP
OPEn
HUMAnCEnTRIC
SUSTAInABlE
WhoareBnPParibasCardif?
BnP Paribas Cardif insures 90 million people around the world. a subsidiary
of bnp paribas, the company aims to be the global benchmark for insurance
partnerships and the leader in personal insurance solutions. bnp paribas Cardif
operates in 36 countries, with strong positions in europe, latin america and asia.
the company provides savings and protection products and services and dis-
tributes them through a network of partners, including banks, credit companies,
the insurance units of automotive manufacturers, retail chains, insurance brokers,
telecoms operators, etc.
direct relationships guarantee an in-depth knowledge of partners’ methods, as
well as their clients. they enable bnp paribas Cardif to focus on the different
stages in the client journey and determine the right moment to propose him
a value-added offer.
To efficiently design and distribute these products, BNP Paribas Cardif deploys an
organization across three networks: bnp paribas retail banking, partnerships,
digital & brokers.
Published by BNP Paribas Cardif Communication • Photos credits: Jean Chiscano, Group Media Library
• Conception, execution: • 12042 – 01 55 76 11 11 – contact@publicorp.fr • Fabrication,
printing: Cimaya Group – 01 40 07 31 90 – contact@cimaya.fr • This document is printed following PEFC
Certification (Pan-European Forest Certification).
Contents
P. 11 QUESTION 01
Howdoyoumanagetheassetsofthecompany
inanunstableeconomy?
P. 12 QUESTION 02
Regulationsgoverningyourbusinesseshavebecometighter.
Whatimpactdoesthishaveforyourcustomers?
P. 14 QUESTION 03
Whatsolutionsdoyouoffertoaddress
newtrendsinconsumption?
P. 16 QUESTION 04
Whyarepartnershipsthepillar
ofyourbusinessdevelopmentmodel?
P. 18 QUESTION 05
Howdoyouworkwithyourpartners?
P. 20 QUESTION 06
Concretely,howdoyouprotectus?
P. 21 QUESTION 07
Whatdoyoudowithoursavings?
P. 22 QUESTION 08
Areyourclientssatisfiedwiththeproductsyouoffer?
P. 24 QUESTION 09
Whichcountrieshavedeliveredthemost
robustgrowthandhavethebestoutlook?
P. 26 QUESTION 10
Whatdoyoumeanwhenyousayyouaimtobea“digital”insurer?
P. 28 QUESTION 11
Whatkindofinnovationdoyoubringtoinsurance?
P. 29 QUESTION 12
Youmarketinsurancecover,butwhatabouttherelatedservices?
Businessreportisbydefinitiondesignedtoprovide
acompany’sstakeholderswithinformationonits
activitiesduringthepreviousyear.Thecontentofthisreport
conformstothispractice.Theformat,however,takesa
differentapproach,asking12fundamentalquestions
toBnPParibasCardifteamsaroundtheworld.Theiranswers
totheseverydirectquestionswillhelpyoubetter
understandwhoweareandhowwecanbringyouconcrete
solutions.Wehopeyou’llfindthis“straighttalk”refreshing.
Fundamentalquestions,
straightanswers
3. 44%OF
BUSInESSInFRAnCE
56%OFBUSInESSOUTOF
FRAnCE
EUROPE*
€19.3billion
GWPinsavings
andprotection
OF WHICH
€10.8 BILLION
IN FRANCE
LATINAMERICA
ARGENTINA – BRASIL – CHILE –
COLOMBIA – MEXICO – PERU
€1.2billion
GWPinprotection
ASIA
CHINA – INDIA – JAPAN –
SOUTH KOREA – TAIWAN –
THAILAND – VIETNAM
€3.8billion
GWPinsavings
andprotection
2012 Fundamental questions bnp paribas CardiF 04 a 05
TWOCORE
ACTIVITIESIn
36COUnTRIES
RETAIL BANKING BNP PARIBAS This channel
oversees the distribution of insurance products by
the BNP Paribas Retail Banking network. Its main
partners are BNP Paribas in France, BNL in Italy,
BNP Paribas Fortis (Belgium, Luxembourg and
Poland) and TEB in Turkey.
PARTNERSHIPS BNP Paribas Cardif aims
to become the global benchmark in insurance
partnerships. This channel works with a portfolio
of top-tier distribution partners, including banks,
consumer credit companies, credit subsidiaries of
automakers, retail chains, phone companies, etc.
DIGITAL & BROKERS This channel concentrates
the digital expertise of BNP Paribas Cardif, which
plays an increasingly important role in partner
distribution strategies. It also serves brokers,
a strategic segment in many European countries,
notably Belgium, the Netherlands and the United
Kingdom.
SAVINGS
BNP Paribas Cardif proposes a range of
savings solutions (unit-linked life insurance
contracts, diversified asset contracts, capital
protected products, etc.) designed to help
people build up and grow their savings, plan
for retirement, and achieve their life plans.
3DISTRIBUTIOnCHANNELSSTRONgPOSITIONSIn3REGIOnSOFTHEWORlD
PROTECTION
Building on a position as a recognized
specialist in creditor insurance (CI),
BNP Paribas Cardif has progressively
expanded its protection portfolio in
personal risk (health insurance, property
& casualty insurance, involuntary
unemployment, etc.) as well as products
for budget and income protection, credit
card protection and extended warranty.
gROSSWRITTENPREMIuMS
10,000EMPlOYEES*
2BIllIOn
EUROS
NET BANKING
INCOME
1BIllIOn
EUROS
10%OF BNP PARIBAS
PRE-TAX NET
PROFIT IN
2012
ASSETS
UNDER
MANAGEMENT
170BIllIOnEUROS
PRE-TAX
NET PROFIT
1EnTITY
4LEGALSTRUCTURES
BNPPARIBAS
CARDIF
CARDIF-ASSURANCES
RISQUESDIVERS
CARDIFASSURANCEVIE
INTERNATIONALSUBSIDIARIES
NATIOASSURANCE
(50%*)WITHAXA
24.3
BIllIOnEUROS
2012
X3In10YEARS
* ALGERIA – AUSTRIA – BELGIUM – BULGARIA – CROATIA –
CZECH REPUBLIC –DENMARK – GERMANY – HUNGARY – ITALY –
LUXEMBOURG – NORWAY – POLAND – PORTUGAL – ROMANIA –
RUSSIA – SLOVAKIA – SPAIN – SWEDEN – THE NETHERLANDS –
TURKEY – UKRAINE – UNITED-KINGDOM
* Headcount for legal entities controlled
by BNP Paribas Cardif: over 8,000 employees.
* Percentage of direct and indirect shareholding.
4. ÉriC LoMBArD
CHairman and CHieF eXeCutiVe oFFiCer
DOESTHEYEAR
2012VAlID
YOURBUSInESS
DEVElOPMEnT
MODEl?
BnP PAriBAs CArDiF ProVeD resiLient
DesPite A VerY turBuLent eConoMiC
AnD FinAnCiAL enVironMent in 2012.
tHanKs to tHe remarKable eFForts
oF our teams, tHe CompanY aCHieVed
its obJeCtiVes in terms oF GroWtH,
strateGiC positioninG and business
FloWs, GiVinG us a sound FootinG
as We moVe ForWard.
WHAT IS YOUR GENERAL ASSESSMENT OF LAST YEAR?
Éric Lombard: BNP Paribas Cardif had a very good year in
2012, marked by very dynamic and robust growth for our
business. Our gross written premiums exceeded 24 billion
euros, thanks to contributions from all our markets.
This flowed through to 1 billion euros in pre-tax net profit,
an historic record for the company.
These very good results reflect the excellent work done by our
people in the 36 countries where we operate, as well as the
solidity and diversity of our business model. BNP Paribas
Cardif has an impressive track record of growth: in ten years
we’ve tripled our gross written premiums, net banking income
and gross operating income.
DOES THIS MEAN BNP PARIBAS CARDIF’S BUSINESS MODEL
IS STILL VALID MOVING FORWARD?
E. L. More than ever. It is efficient, as our results have proved.
Our model is based on the distribution of insurance products
2012 Fundamental questions bnp paribas CardiF 06 a 07
5. via partners with a range of profiles – retail banks, retail
chains, the credit subsidiaries of automakers, brokers, etc.
Through them, we have access to a vast franchise of end
customers.
Our savings and protection products are equally diversified,
as is our geographic coverage, which is both multi-local and
global. This organization allows us to cascade best practices
and, above all, effectively manage our risk exposure.
Our performance demonstrates that this business model
works: in 2012 we counted nearly 90 million policyholders
around the world. This enables us to look to the future with
confidence and target sustained double-digit growth in profit.
We aim to do this by adjusting our model so that BNP Paribas
Cardif no longer serves partners with just a single product, but
rather proposes a segmented offering that is closely tailored
to the needs of their customers.
HOW DID YOUR PERFORMANCE BREAK OUT INTERNATIO-
NALLY, AND WHAT ABOUT YOUR DOMESTIC MARKETS,
WHERE THE OUTLOOK IS MORE UNCERTAIN?
E. L. In 2012, 56% of our gross written premiums were
generated outside France. The increasingly international
profile of BNP Paribas Cardif clearly spurred our
excellent year-on-year growth. Asia and Latin America
posted growth rates of 25% and 16%, respectively.
At mid-term these two regions are expected to account
for a third of the company’s gross written premiums.
The remaining two thirds will come respectively from
France and the rest of Europe, which includes Central
Europe and Turkey.
For example, our international operations generated net
inflows from savings of 3 billion euros. By the end of the
decade we expect over half of our gross written premiums
to come from emerging markets.
Our domestic markets made a pivotal contribution in 2012.
France enjoyed excellent results in a challenging market.
Our teams succeeded in gaining market share and introduc-
ing new products, allowing us to post better growth than our
competitors. In Italy, where we’re No. 5 in bancassurance,
Cardif Vita’s business has now been fully integrated and
our partnership with Age as has enabled us to expand
in casualy insurance. Belgium also delivered very good
results in creditor insurance, while Luxembourg recorded
exceptional savings inflows.
GIVEN THIS FAVOURABLE CONTEXT, WHAT IS YOUR
OUTLOOK?
E. L. We’re celebrating our 40th year of business this year,
and BNP Paribas Cardif makes a very significant 10%
contribution to BNP Paribas pre-tax net income. Thanks
to sustained business in France and strong growth in Asia
and Latin America, our gross written premiums rose 5%
in 2012.
To continue the growth path we have been on for many
years, in 2013 we will further expand our portfolio of
savings and protection products with three priorities.
First, we want to forge increasingly close relations with
the end customer, second, we want to embed digital
solutions across the company, and third we will continue
to adapt to the business model of our partners.
BNP Paribas Cardif will continue to deploy its expertise
and energies to achieve our ultimate goal of being the
global benchmark in insurance partnerships and a leader
in personal protection insurance.
“In ten years we’ve tripled
our gross written premiums,
netbankingincomeandgross
operatingincome.”
Éric Lombard CHAIRMAN AND CHIEF EXECUTIVE OFFICER
2012 Fundamental questions bnp paribas CARDIF 08 a 09
EXECUTIVECOMMITEE
90millionCLIENTS
INSURED
12.5%COMPOUND ANNUAL
GROWTH RATE
BETWEEN 2002 2012
24.3BILLIONEUROS GWP
OF WHICH 23% IN PROTECTION
1 ÉRIC LOMBARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER 2 PIERRE DE VILLENEUVE
MANAGING DIRECTOR 3 STANISLAS CHEVALET CHIEF OPERATING OFFICER, DIGITAL BROKERS
CHANNEL, TECHNOLOGY AND OPERATIONS EFFICIENCY 4 RENAUD DUMORA CHIEF OPERATING
OFFICER, FINANCE RISKS 5 VIRGINIE KORNILOFF CHIEF OPERATING OFFICER, FRANCE AND
BNP PARIBAS RETAIL BANKING CHANNEL 6 JEAN-BERTRAND LAROCHE CHIEF OPERATING OFFICER,
PARTNERSHIPS CHANNEL 7 GÉRARD BINET MANAGING DIRECTOR 8 OLIVIER CORTES CHIEF
FINANCIAL OFFICER 9 JACQUES FAVEYROL CHIEF ACTUARY 10 ISABELLA FUMAGALLI HEAD
OF ITALY 11 MICHEL GUIGAL ADVISER TO EXECUTIVE MANAGEMENT 12 XAVIER GUILMINEAU
HEAD OF ASIA 13 OLIVIER HÉREIL CHIEF INVESTMENT ans assets management OFFICER 14
LAURENCE HONTARRÈDE HEAD OF CLIENT AND MARKETING STRATEGY 15 SOPHIE JOYAT HEAD
OF HUMAN RESOURCES 16 FRANCISCO VALENZUELA HEAD OF LATIN AMERICA
1 2
16
7 108 9
1311 1412
15
Find out the video interview of Éric Lombard
on 2012 annual results on our website :
www.bnpparibascardif.com
3
5
4
6
6. questions de Fond 2012 Business enVironMent bnp paribas CardiF 10 a 11
HOWDOYOUMANAGE
THEASSETSOFTHECOMPANY
INANUNSTABLEECONOMY?
Question 01
WHiLe eConoMiC GroWtH HAs sLoWeD in MAture MArKets, asia and latin ameriCa
Continue to be important driVers For bnp paribas CardiF. deVelopment
in europe neVertHeless remain deCisiVe For tHe CompanY’s Future.
WHAT ARE SOME
OF THE CHALLENGES
YOU FACE?
Olivier Héreil: To start
with, we face significant
macroeconomic challenges.
The economic crisis in the
euro zone, the historic core
of our activities, has
proved persistent and even
worsened, and has not been
entirely offset by our
international growth. This
situation has given rise
to another important issue,
the low interest rates in
markets, sustained by
downward trends in
inflation in all countries.
Lastly, we face a major
upheaval in rules governing
the insurance industry,
embodied by the Solvency II
reform. Ultimately, this new
norm is designed to create
a stricter framework for
our activities. At present,
this framework has yet
to be finalized and instability
continues to reign.
HOW HAVE YOU ADAPTED
YOUR BUSINESS MODEL
AND PRODUCTS TO THIS
WEAKENED CLIMATE?
O. H. The key to our
necessary adaptation
is diversification of our
geographic footprint and
our assets. A geographic
diversification of our
activities and our assets,
first in the emerging markets,
reinforcing our investments
including in the countries
of the “new economy”:
Mexico, Colombia, Thailand.
A diversification of our assets
in the developed countries,
placing priority on corporate
bonds, large corporates
but also lending to larger
French midcaps and
real estate investments:
port infrastructure
concessions or wind
power.
HAS THIS ALSO CHANGED THE
WAY YOU WORK?
O. H. We’ve increased
our presence in certain
financial centers such
as Italy or Luxembourg,
where we set up asset
management platforms
for our savings assets.
We reinforce our
expertises while
selecting corporate
bonds and non rated
credits, evaluating
real estate and
industrial infrastructure
projects.
OLIVIER HÉREIL,
DIRECTOR OF ASSETS
MANAGEMENT,
BNP PARIBAS CARDIF
OF BNP PARIBAS CARDIF’S
SAVINGS ASSETS UNDER
MANAGEMENT WILL COME
FROM OUTSIDE FRANCE*
WITHIN FIVE YEARS,
50% OF OUR BUSINESS
COMES FROM
EMERGING
MARKETS*
* Source: BNP Paribas Cardif
14%
Questions? We DeFiniteLY HAVe AnsWers.
We Create linKs betWeen our partners and our Clients. our mission
is VerY simple: proVide eaCH person WitH tHe insuranCe solutions
tHeY Want and need.
12 QUESTIONS
TO
UNDERSTAND
THE YEAR 2012
7. REGULATIONSGOVERNING
YOURBUSINESSES
HAVEBECOMETIGHTER.
WHATIMPACTDOESTHISHAVE
FORYOURCUSTOMERS?
Question 02
WHAT ARE THE REGULATIONS
WITH WHICH YOU MUST
COMPLY?
Renaud Dumora: In terms of
prudential rule, BNP Paribas
Cardif is subject to European
Solvency I regulations, and
soon Solvency II. The princi-
ples involve establishing a
prudential framework that
mirrors as closely as possible
the actual profile of risks
incurred by an insurance com-
pany. In other words, the risks
that the company takes must
be consistent with its solvency
and capital.
From an accounting stand-
point we must meet specific
IFRS standards for the insur-
ance business. As a bancassur-
ance unit that is part of the
BNP Paribas group, we are also
impacted by the global Basel
III rules, including the specific
European provisions known as
CRD IV. Lastly, our company is
of course subject to the Euro-
pean IMD2 directive, which
governs insurance intermedia-
tion.
THESE RULES ARE DESIGNED
ABOVE ALL TO PROTECT
CONSUMERS, AREN’T THEY?
R. D. They are, since their
objective is to guarantee the
solvency of insurance compa-
nies and thus the quality of the
promise made to their custom-
ers. This is all the more impor-
tant since the insurance pro-
duction cycle is inverted. By
that I mean that, in exchange
for payment of a premium,
paid in anticipation, the insurer
makes a commitment to the
customer. But this protection
is specifically covered by the
directive on insurance inter-
mediation, which in particular
aims to clarify the terms of the
contract, provide better advice,
and ensure that the cover pro-
posed is aligned with the
needs of the customer. The
IFRS accounting standard, on
the other hand, is designed to
provide more detailed and
transparent information for
investors. More broadly, the
interests of the end customer
are addressed by specific reg-
ulations across Europe. This
trend was initiated about a
decade ago by the Financial
Services Authority, the UK
regulator.
DO THESE REGULATIONS
CHANGE YOUR ORGANIZATION
AND YOUR PRODUCT OFFER?
R. D. These rules, all of which
continue to change, have
indeed led to fundamental
changes in our organization,
impacting management of risk
and capital, reporting, com-
munication, regulatory rela-
tions, as well as commercial
operations. This has been
beneficial since these changes
bring us a clearly vision of our
ability to underwrite a given
risk in a given country thanks
to a more exacting and, we
hope, stable framework for the
company.
As for our products, throughout
Europe this can also impact
the pricing of products-savings
products, for example, carry
greater risk and consume
more capital for insurers. The
new regulations have also
incited BNP Paribas Cardif to
offer more protection cover,
a segment that is very benefi-
cial in terms of risk diversifica-
tion, and thus solvency ratios.
Lastly, new regulations impact
our asset allocation strategy.
The Solvency II directive,
excessively penalizes equity
holdings.
rEGULATION 2012 Fundamental questions bnp paribas CARDIF 12 a 13
BANCASSURANCE IS INCREASINGLY REGULATED EVERYWHERE
IN THE WORLD WITH MORE AND MORE RULES,
INCLUDING SOLVENCY II, BASEL III, IMD 2, ETC. BUT ALTHOUGH
THESE REGULATIONS INTRODUCE CONSTRAINTS, ARE COSTLY
AND SOMETIMES POORLY CONCEIVED, REGULATION IS HEALTHY
AND REFLECTS DIVERSIFICATION. THIS OPENS UP
NEW COMMERCIAL OPPORTUNITIES.
IDENTIFYING RISKS
BNP Paribas Cardif’s risk policy is above all anchored
in diversification, in savings, from general fund products
(diversified and united-link products) with a lower risk
profile, and in protection, from creditor insurance to
personal and property and casualty insurance. This also
means geographic diversification into emerging countries,
particularly in Asia and Latin America.
With regards to measurement tools, this risk policy
leads to definition of risk appetite and risk profiles
that are progressively implemented for each individual
country and for each business segment. Lastly, this policy
emphasizes growth, driving new policy subscriptions
and providing the company’s managers with a better
vision of their risk exposure and their capacity
to underwrite additional risks.
“Solvency II makes qualitative
and quantitative risk assessment
a major priority, with a dual
objective of maintaining both
our solvency ratio and
our growth.”
“Underwriting risks means accepting a
certain volatility in the company’s net
profit compared with forecasts.
In 90% of the cases, our risk policy establishes
an acceptable maximum variation of 50%.”
listen
OUR PARTNERS
TESTIMONIES
ON REGULATION
RENAUD DUMORA,
CHIEF OPERATING OFFICER,
RISKS AND FINANCE,
BNP PARIBAS CARDIF
8. WHAT SOLUTIONS
DO YOU OFFER
TOADDRESSNEWTRENDS
INCONSUMPTION?
CustoMers Are LiVinG Better
AnD LiVinG LonGer. tHeY are more
mobile and alWaYs ConneCted.
tHeY HaVe neVer Had suCH a Wide
ranGe oF CHoiCes and Can aCCess
bnp paribas CardiF oFFers Via anY
CHannel. tHe CompanY is adaptinG
to tHis neW ConneCted
World…
HOW HAS THE PROFILE
OF CUSTOMERS CHANGED?
Laurence Hontarrède: New
expectations are appearing
around the world because
customers have a different
perspective of the future.
Insurance by nature supports
people throughout their lives.
The possibilities they enjoy
all represent opportunities
to be explored in terms of
insurance. One of the most
significant factors amidst
these changes is the aging
of the world’s population.
This has spawned recent
demand for health cover
and income protection for
people in different stages
of their lives.
Pierluigi Verderosa: We’re
seeing the same trends
in Italy linked to an aging
population, changes in
purchasing behaviours
and ubiquitous multimedia
communication. In the last
area, younger “digital
natives” are instinctively
ready to try out new digital
solutions, while older
categories welcome new
technologies because they
make their lives simpler.
ARE YOU SEEING DIFFERENCES
ACCORDING TO THE
GEOGRAPHIES WHERE YOU DO
BUSINESS? WHAT IMPACT DOES
THIS HAVE ON EXPECTATIONS
TOWARDS INSURANCE
PRODUCTS?
P. V. In Italy there’s clearly
a distinction between large
cities and provincial towns.
In major urban areas we see
more clients with an early
adopter profile when it comes
Question 03
100,00033% 46%HEALTH-RELATED
MOBILE APPS
IN NORTH AMERICA
ALONE
IS THE RATE
OF INTERNET
CONNECTION OF
PEOPLE IN THE WORLD
OF THE WORLD‘S
POPULATION WILL BE UNDER
25 YEARS OLD IN 2012
(VS 17% OVER 55)
ITALY: “BNL CASA E FAMILIA” ALL-RISK HOME COVER
qDeveloped with its
longstanding banking
partner, one of the top-
performing products for
BNP Paribas Cardif Italy in
2012 was an all-risk home
cover product that includes
a range of assistance
services. In the event
of flooding or electrical
problems, a 24-hour hotline
is available to request
a service call. The “Casa
e Familia” product is
marketed via BNL’s digital
channel. Customers can
subscribe and purchase
the cover online.
ConsuMPtion 2012 Fundamental questions bnp paribas CardiF 14 a 15
to new technologies and
multichannel use. Outside
these urban hubs, the human
component in the customer
relationship remains very
important, a phenomenon
strengthened by a sharper
economic slowdown.
As for customer expectations,
there’s greater demand
throughout the country
for health cover and pension
solutions, particularly
with guarantees available
throughout the contract.
L. H. We know that we’re all
going to live longer. However,
the impact will not be the
same depending on the
degree of solidarity and
structures available to
support policyholders in the
senior part of their lives.
In Europe we’re already
seeing a reduction in state
support, and the level of
payments and services is
increasingly becoming a
question of individual
responsibility. In Asian
nations, customers expect
a lot from insurance, which
has become a form of
support throughout their
lives, whereas in Europe
people above all want
products that are efficient.
HOW DO YOU ADAPT YOUR
OFFERS AND DISTRIBUTION
CHANNELS TO THESE
DIFFERENCES?
L. H. Internet use is
becoming more frequent
everywhere, especially
in Western Europe and
Northern Europe, as well
as Asia. BNP Paribas Cardif
is developing solutions for
secure e-transactions
and is able to take action to
address e-reputation issues
too. In terms of our
distribution channels, we are
becoming more deeply
integrated in the client
relationships of our partners,
embedding their CRM as far
upstream as possible to be
able to propose custom-
tailored solutions.
P. V. In Italy, even though
the penetration of insurance
products hasn’t attained the
same levels as in other major
European markets, we’re
seeing changes in customer
attitudes. People pay closer
attention to the value of the
product in terms of the
service delivered, alongside
the cover guaranteed.
This trend lets us forge
much closer relations with
the customer. And this means
our role as insurer has to
stretch from prevention of
a claim to reimbursement,
which can involve recourse
to new technologies like
GPS for auto insurance or
telemedicine for health
protection.
WHAT OBJECTIVES HAVE YOU
SET IN THIS CONTEXT?
P. V. We aim to develop
health protection and
pension products to meet the
new needs of our customers,
available via any channel
they choose to contact us
or our partners.
L. H. We’ve set objectives
to diversify our portfolio of
products with a customer-
centric approach that allows
us to forge close relations
and anchor loyalty. This will
enable to increase its market
share wherever they are
present.
CUSTOMER
EXPERIENCE
The goal:
to optimize the customer
experience with a relevant
insurance offer, spanning everystep in the process: request forinformation, advice, subscription,payment, claim, tracking of claimspayment, changes to a clause,
request for information on
a current policy, etc.
LAURENCE
HONTARRÈDEDIRECTOR OFCLIENTS MARKETINGSTRATEGY,
BNP PARIBAS CARDIF
PIERLUIGI
VERDEROSAMARKETING DIRECTOR,BNP PARIBAS CARDIFIN ITALY
Source: Internet world stats, dec. 2011 Source: BNP Paribas Cardif
Source: United Nations,
world population prospect
9. business model 2012 Fundamental questions bnp paribas CARDIF 16 a 17
WHAT IS THE LOGIC BEHIND YOUR PARTNERSHIP-BASED
DEVELOPMENT MODEL?
François Tritz: A business model based on partnerships reflects
a commercial strategy. By building strong ties with the financing
arms of automakers like Renault and Volkswagen, we
committoprovidingthemwithproducts
adapted to the needs and expectations
of their customers and optimize the way
they distribute our products. And we
thus benefit from their distribution
power.
Florence Bourgois: In the retail sec-
tor, our model consists in helping our
partners market products that com-
plement their core offer, such as extended warranties, or income
protection. Here, we need expertise in all the issues our partners
face in terms of distribution, customer loyalty and capturing
traffic. Plus, we have to listen closely to their customers.
Pascal Perrier: In bancassurance, the strength of our business
model is that we can assist our partners in expanding their
banking offer with our insurance solutions. We bring them a
quality offering in terms of products, optimized distribution and
customer knowledge, contributing tangible value-added for
them. This model is valid everywhere,
whether it’s a very mature branch banking
network in Italy with our historic partner
BNL, or in Poland and Ukraine, where our
banking partners are still developing.
DOES THIS LET YOU DIVERSIFY YOUR SALES
OPPORTUNITIES?
F. B. Retail consumption trends are
evolving at a fast pace, and these
changes all create diversification opportunities. In Europe
and Latin America alike, our major retail partners have seen
a drop in traffic in very large stores as people turn to local
stores. This leads us to examine new opportunities to market
our products in smaller outlets
where staff might not have as
much time.
F. T. All our auto manufacturer
partners by nature have very
diverse needs. Creditor insur-
ance is a standard and neces-
sary product, but it’s not enough
for the end customers, who
have expectations in terms of
extended warranty, property
insurance, individual protection
or roadside assistance. Our task
is to find ways to use our insur-
ance cover to create loyal links
between policyholders, the
brand and the distribution net-
work.
P. P. The bancassurance model
built by BNP Paribas Cardif over
the years with the retail and pri-
vate banking networks of the
BNP Paribas group and repli-
cated with other partners has let
us multiply sales opportunities.
As we know more about custom-
ers and their expectations we
make it easy for them to interact
with us at any time.
WHAT TYPE OF EXPERTISE DO YOU
PROVIDE FOR YOUR PARTNERS?
P. P. Our long standing bancas-
surance experience with legacy
partners lets us deploy the com-
plete bancassurance value chain
and best practices wherever
the bank is present. In Turkey
we were able to rapidly serve
the TEB retail network and its
550 branches in the country.
F. T. With Volkswagen Financial
Services, our largest global part-
ner after Cetelem, we did a
detailed analysis of the perfor-
mance and best practices for
distribution of insurance prod-
ucts on the market. This has let
us enhance our commercial per-
formance and add value for the
end customer.
F. B. With BNP Paribas Cardif
marketing teams we track
changes in consumer purchasing
behaviours. In 2012 we thus
revamped our range of insurance
for electronic goods, proposing
new products for our partners
aligned with different customer
profiles.
BNP PARIBAS CARDIF HAS DEVELOPED THANKS TO AN INNOVATIVE BUSINESS MODEL,
WORKING WITH A NETWORK OF PARTNERS – BANKS, RETAILERS, AUTOMAKER CREDIT
UNITS, ETC.– WHO DISTRIBUTE ITS INSURANCE PRODUCTS AROUND THE WORLD,
REACHING CUSTOMERS WHEREVER THEY NEED INSURANCE.
Towergate(UnitedKingdom):major
brokersjoinBNPParibasCardif
BNPParibasCardifhaswelcomedanewcategoryof
partners,largebrokerswhobenefitfromprivilegedaccess
tocertaindistributionnetworksandourpotentialcustomer
franchise.Afirstemblematicpartnershiphasbeenforged
intheUnitedKingdomwithTowergate,forwhich
weaimtobeaprimesourceofhomeinsurance.
In2012Towergatesoldovertwobillioneuros
inpremiumsforinsurers,makingitthe
leadingindependentinsurance
intermediaryinEurope.
VolkswagenFinancialServices(Brazil):
leveragingbestpractices
AftertenyearsofpartnershipwithVolkswagenFinancial
Services,in2012,VWFSBrazilbecameoneoftheTop3
contributorstoBNPParibasCardifgrosswrittenpremiums.
Thisperformancereflectsabuoyantlocalautomobile
market,whichgrew5%involumein2012.
Italsoreflectsthesuccessofeffectivecompetitive
benchmarkingofbestpracticesinmarketing,
customervalue,productoffers
andsalessimulations.
“We share with
our partners the
vast expertise
we’ve acquired
in the retail sector
in 20 countries
and over
40 partnerships.”
FLORENCE BOURGOIS,
retail MARKET DIRECTOR,
BNP PARIBAS CARDIF
“Our business model takes
a ‘white label’ approach
to serving our partners.”
FRANÇOIS TRITZ,
AUTOMOtive MARKET DIRECTOR,
BNP PARIBAS CARDIF
“Our complemen-
tary fit with BNP
Paribas guarantees
massive distribu-
tion reach, covering
millions of potential
customers.”
PASCAL PERRIER,
BANCASSURANCE
MARKET DIRECTOR,
BNP PARIBAS CARDIF
TürkEkonomiBank(TEB):BNPParibas
Cardif’sexclusivepartnerinTurkey
BNPParibasCardifhasbeenactiveinTurkey
since2007,becomingamajorplayerinlife
andnon-lifeinsuranceandpensionproducts
marketedthroughitslegacybankingpartnerTEB.
Thebankbecametheexclusivepartner
ofBNPParibasCardifin2012following
themergerofTEBandFortis,
asubsidiaryofBNPParibas.
WHY
AREPARTNERSHIPS
THEPILLAR
OFYOURBUSINESS
DEVELOPMENT
MODEL?
Question 04
listen
PASCAL PERRIER interview on
french BANCASSURANCE
10. business model 2012 Fundamental questions bnp paribas CARDIF 18 a 19
HOWDOYOUWORK
WITHYOUR
PARTNERS?
Question 05
what has maDE evolve your
partners expectations?
Pierre-Olivier Brassart: In most mature markets, business
in our partners’ different sectors generally declined in
volume and margins were flat. As a result, something that
might have been secondary to them in the past, developing
additional insurance offers, has
now become essential. Given their
close relations with customers,
they expect more from our insur-
ance products, more advice on
how to propose them to potential
customers at the optimal sales
opportunity.
For BNP Paribas Cardif, this
demand for innovation in the
insurance market is synony-
mous with opportunities to be
seized.
HOW DO YOUR PARTNERS PERCEIVE
THESE CUSTOMER EXPECTATIONS?
P.-O. B. They’ve all understood
that their customers are
increasingly well-informed, and
also less royal. They are free to
decide how and when they want
to engage with a brand. Customers everywhere are using
multiple channels, and our partners need to adapt.
Consequently, distributors want to know more about their
customers’ experience and their profile. This knowledge
WHAT DO YOU DO FOR YOUR
CUSTOMERS?
Wulf Hartrampf : The
satisfaction of our customers
and dealerships is very
important to us. In reality,
our dealerships are our main
distribution channel. Only
the delivery of good
performances will allow us
to achieve the very ambitious
sales targets we have set
ourselves at global level.
HOW DOES BNP PARIBAS
CARDIF HELP YOU IN ACHIEVING
YOUR TARGETS?
W. H It provides us with
a great deal of support by
responding directly to what
dealerships want by offering
innovative products that are
tailormade for our needs.
This approach to sales is
really effective, because the
dealership satisfaction rubs
off directly on customers, and
therefore generates customer
satisfaction.
In recent years, we have built
close links with BNP Paribas
Cardif in 16 countries.
Together, we have achieved
results that continue to
improve significantly. This
positive outcome is due to the
commitment not only of its
management, but also of
everyone in the company.
HOW DOES BNP PARIBAS
CARDIF DIFFER FROM YOUR
OTHER PARTNERS?
W. H The BNP Paribas
Cardif philosophy comes
through in its determination
to build a special partner-
ship-based relationship
where the focus is always
on quality. It’s also about
the company’s commitment
to continual innovation
in our market, which
helps us to stand out
from our competitors as
a distinctive player.
This approach dovetails
perfectly with the way we
operate at Volkswagen
Financial Services. That’s
why we are so happy to have
found in BNP Paribas Cardif
a partner that thinks and acts
just like we do.
lets them propose solutions matched to their appetite for
insurance. We are fully conversant with these trends and
in France, for example, we worked with one of our biggest
partners starting in 2012 to segment and target our
clientele databases in order to propose precisely targeted
insurance products.
DOES THIS HELP YOU WORK
MORE EFFICIENTLY TOGETHER?
P.-O. B. Our partners rely on
our support to expand their
expertise in marketing new
insurance products. By sharing
a precise analysis of distribution
with them, we can better iden-
tify ways we can together more
effectively engage with poten-
tial customers.
For BNP Paribas Cardif, improv-
ing the insurance service experi-
ence for the customer means
selling effective cover to people
who need it and who understand
what our partner is offering
them. This also means correct-
ing aspects that might not be
clear. For example, our reporting
data shows that customers think they are covered for risks
when they actually are not. So we need to clarify information
at every stage to improve understanding of the policy. We’re
working to do this everywhere where we operate.
WORKING CLOSELY WITH PARTNERS
ENSURES THAT BNP PARIBAS CARDIF APPLIES INTIMATE
KNOWLEDGE OF THEIR METHODS AND THEIR CUSTOMERS.
THIS IS THE BEST WAY TO BRING THEM SOLUTIONS
THAT ARE FULLY EMBEDDED IN THEIR SALES PROCESSES.
WULF HARTRAMPF,
MANAGING DIRECTOR, VOLKSWAGEN VERSICHERUNG
WHATOUR
PARTNERS
ARESAYING…
“Studies in markets
around the world
show growing
demand for protection
insurance. Customers
want solutions adapted
to their needs.
This means we need
to make them available
through the appropriate
distribution channels.”
PIERRE-OLIVIER
BRASSART,
SENIOR INSURER
GLOBAL PARTNERS,
BNP PARIBAS CARDIF
listen
our testimonies “let‘s talk
about insurance DISTRIBUTION“
“BNP Paribas Cardif
is the only insurer
to discuss innovation
with its customers…
And that’s exactly
what we expect from
a partner.”
11. businesses 2012 Fundamental questions businesses bnp paribas CARDIF 20 a 21
WHAT DOES “INSURING
PEOPLE AND WHAT IS DEAR
TO THEM” MEAN?
Jean-Pierre Diaz : The
concept of ‘insurance
protection’ is admittedly a bit
vague for customers.
Protecting people and what is
dear to them means insuring
policyholders and their
families against adverse
events. This ranges from our
historic business of creditor
insurance, where for example
in the event of the death of
the policyholder, we reimburse
part or all of the credit.
Likewise, if people are unable
to work for health reasons,
we cover their monthly
credit payments.
HOW HAVE YOU ANTICIPATED
CHANGING NEEDS TO EXPAND
YOUR RANGE?
J.-P. D. Recent regulatory
changes in France and other
countries applicable to
creditor insurance introduce
greater rights and freedom
with regards to cover for
credits. Our offer must
adapt to this increasingly
competitive environment and
we need to anticipate future
trends. At the same time,
we’ve identified new growth
outlets to offset the drop
TO HELP THEM ACHIEVE
THEIR GOALS OR SECURE
THEIR LIVES AGAINST
EVERYDAY RISKS, WHAT
DO YOUR CUSTOMERS
EXPECT IN TERMS OF
SAVINGS SOLUTIONS?
Hervé Cazade : Customers
want security, performance
and personalized
solutions. Diversified
products are the only
life insurance con-
tracts that meet all
three of these expec-
tations. When the
contract reaches its
term, customers
know that they will
at minimum recover
the initial amounts
invested. They can
decide on the term
and the distribution of
assets. Lastly, they
know they have expo-
sure to a potential
yield that’s greater than a
conventional general fund
instrument thanks to more
dynamic allocation of long-
term assets.
With this type of contract,
clients also have access to
innovative services and
options: greater guarantees,
enabling them to lock in
gains realized, a loyalty
bonus awarded from the
fourth year, plus supple-
mentary death cover, which
protects the client’s savings
up to a million euros in unre-
alized losses.
DO YOU REALLY USE THE
FUNDS YOU COLLECT FROM
CUSTOMERS TO FINANCE
THE ECONOMY?
H. C. Absolutely. Life insur-
ance companies play an
important role as long-term
investors. This means that
the savings our clients
entrust us with contribute to
financing both governments
and businesses. BNP Paribas
Cardif is also providing more
financing for French compa-
nies via the FSP (Fonds Stra-
tégique de Participation)
investment fund and the
creation of BNP Paribas
France Credit, a fund
that invests mainly in
mid-cap companies.
THE FINANCIAL
CRISIS HAS SLOWED
ECONOMIC GROWTH.
HAS THIS IMPACTED
YOUR BUSINESS?
H. C. BNP Paribas
Cardif has always
been prudent. This
approach enabled us
to retain our clients
during the turbu-
lence of the 2007-
2008 crisis. We have
nevertheless seen
a slowdown in the life
insurance market. Despite
this, BNP Paribas Cardif
proved resilient, since our
gross written premiums in
France declined just 2%,
compared with a general
market decline of 8% in
2012.
in credit volumes in mature
markets. That’s why
BNP Paribas Cardif recently
entered the individual
protection segment,
particularly health insurance
and income protection.
WHAT EXACTLY DO
YOUR NEW PRODUCTS
COVER?
J.-P. D. We propose health
cover to guarantee
reimbursement of medical
expenses, supplementing
reimbursements by public
health insurance schemes,
as in France. But we also
go further, taking into
account new customer
behaviours, reimbursing
alternative medicine
treatments, for example.
In property insurance, we
also offer products aligned
to today’s lifestyles.
Our policies cover nomadic
multimedia devices against
the risk of theft or damage –
mobile phones, tablets, music
players, cameras, etc.
This new family of so-called
“affinity” insurance also
includes extended warranties
for household appliances,
as well as computers and
electronics, or automobiles,
for example.
CONCRETELY,
HOW
DOYOU
PROTECTUS?
WHATDOYOUDO
WITHOURSAVINGS?
Question 06
Question 07
BNP PARIBAS CARDIF HAS LONG BEEN
A LEADER IN CREDITOR INSURANCE.
TODAY THE COMPANY IS EXPANDING
INTO NEW MARKETS BY OFFERING
PRODUCTS TO INSURE PERSONAL
PROPERTY AND HEALTH.
INDIVIDUAL SAVINGS, LIFE INSURANCE, COLLECTIVE
SAVINGS AND RETIREMENT SAVINGS ARE ALL SOLUTIONS
THAT HELP INDIVIDUALS ACHIEVE THEIR GOALS OR
PROVIDE FINANCING FOR THE REAL ECONOMY.
NEW OFFERS
IN 2012
q Sahti: Marketed in
Algeria by Cardif El Djazaïr,
this health cover pays a set
amount if the policyholder
is diagnosed with a serious
illness, and provides
per diem allowances
for hospital stays.
q Medex: Introduced
in Sweden in partnership
with Swedbank, this
health insurance
now covers 30,000 policy-
holders thanks to
competitive premiums
in this market.
q Cardif Liberté
Emprunteur: In France,
this new individual
mortgage insurance policy
features more guarantees
and innovative options,
with revised exclusions
and lower rates.
“Thanks to its
range of diversified
products, especially
life insurance,
BNP Paribas Cardif
is No. 2 in the
bancassurance market
in Taiwan.”
POLLY WANG,
CEO OF CARDIF TAIWAN
see
how BNP PARIBAS CARDIF
FINANCES THE REAL ECONOMY
HERVÉ CAZADE,
head of distribution and
cOmmercial development
BNP PARIBAS CARDIF FRANCE
JEAN-PIERRE DIAZ,
DIRECTOR OF SAVINGS
AND PROTECTION PRODUCTS,
BNP PARIBAS CARDIF FRANCE
12. CLient MArKetinG bnp paribas CardiF 22 a 23
AREYOUR
CLIENTSSATISFIED
WITHTHE
PRODUCTS
YOUOFFER?
Question 08
CHAnGinG tHe PerCePtion PeoPLe
HAVe oF insurAnCe is CritiCALLY
iMPortAnt For BnP PAriBAs CArDiF.
and tHe best WaY to reConFirm tHe
utilitY and leGitimaCY oF insuranCe
is to preCiselY determine tHe needs
oF diFFerent Clientele proFiles. tHis
is Fundamental to CollaboratinG
WitH partners to desiGn oFFers
tHat inCite Customers to subsCribe
insuranCe CoVeraGe.
customers will retain and
renew. This is why the first
stage in our product develop-
ment process involves in-
depth analysis to identify
exactly what our customers
want and how we can meet
these needs. This approach is
equally important for our part-
ners, who also put their cus-
tomers at the center of their
priorities. To do this you first
need a sound upstream under-
standing of how people envi-
sion the future, depending on
their personal situation and
the socioeconomic situation in
their country, before they buy
insurance. Our marketing
teams at the head office and at
the country level have devel-
oped a structured methodol-
ogy based on different tools to
effectively identify the actual
needs of customers and then
apply this knowledge to design
the appropriate insurance
products.
HOW DO YOU IDENTIFY NEW
CUSTOMER NEEDS?
T. T. In Germany, for example,
we work with specialists who
WHAT DOES “PUTTING
CUSTOMERS AT THE HEART
OF OUR PRIORITIES” MEAN
FOR YOU?
Tatjana Tschacher: For a long
time we focused primarily on
the insurance products we
provided for our partners. Now
we have a much stronger focus
on the end consumer. Also, we
recognize that these custom-
ers resort to an increasingly
diverse range of channels to
find information and compare
products before making their
purchase decision. It’s pre-
cisely at this decisive moment
that we need to be seen as the
best choice. The key to doing
this is to create products that
precisely meet their needs and
expectations.
HOW DO YOUR PARTNERS
POSITION THIS RELATIONSHIP
WITH CUSTOMERS?
T. T. Only good insurance
products, meaning products
that customers perceive as
truly useful, will be success-
fully marketed by our part-
ners. These are products that
analyze international trends in
consumer behavior, as well as
product innovations and the
specific needs of the local mar-
ket. Since we’re present in
numerous countries, we’re
able to consistently identify
trends in the insurance mar-
ket, then analyze them and
share information with our dif-
ferent teams around the world.
So we benefit from a vast net-
work able to gather informa-
tion concerning these issues in
our different countries. In
South Korea, for instance,
studies show that for the
majority of the population, the
decision to purchase an insur-
ance product is at least half
the time motivated by the
need to prepare for retirement.
(see box).
HOW DO THESE NEW FACTORS
CHANGE YOUR PRODUCT
PORTFOLIO AND THE WAY YOUR
TEAMS ARE ORGANIZED?
T. T. The information we gain
from market and consumer
analyses mainly impacts the
way we develop new products.
Right from the start of the
design phase it’s important to
really know the market and
identify the expectations of
individuals. If we have accu-
rately determined the needs of
potential customers we can
create the products that inter-
est them. That’s why it’s in our
interest, through our partners,
to promote products that
deliver more added value for
end customers than those
available from competing
insurers.
HOW EXACTLY DO YOU
TARGET YOUR OFFERS?
T. T. BNP Paribas Cardif has a
powerful client segmentation
tool that lets us optimize the
design of new products, as well
as the way the products are
marketed. This lets us obtain
very detailed information on
the needs and expectations of
specific customer categories.
For example, these analyses
show that customers generally
want more benefits, contracts
withfewerexclusionsandterms
that are clearer and easier to
understand.
Other applications let us select
a specific client segmentation
andanalyzeattitudesandappe-
tite for life insurance, health
protection or any other area of
property of personal insurance.
These findings go into a data-
base that serves directly for
designing future offers. In Tur-
key, we were able to get our
longstanding distribution
partner bank, TEB, on board
right from the start to promote
an education savings product.
The same is true in Japan, where
our Juvenile Education offer is
perceivedassimpleandinnova-
tive. In Italy, our partner BNL
veryrapidlygavethegreenlight
to our new income protection
product, reflecting the difficul-
ties Italian households face in
managing their budgets.
64%OF KOREANS
PREFER NAME BRAND
INSURANCE PRODUCTS
“The insurance offers we design
make a concrete contribution
to helping people improve
the quality of life for themselves
and their family.“
TATJANA TSCHACHER,
DIRECTOR MARKETING AND COMMUNICATION,
BNP PARIBAS CARDIF IN GERMANY
SOUTH KOREA: PRIORITY ON HEALTH AND RETIREMENT
South Korea has experienced
30 years of bright economic
development and the
population will begin to age,
starting in the next decade.
This demographic trend
is expected to encourage
Koreans to look more closely
on insuring their health and
preparing for retirement. At
the same time, use of digital
media has exploded, and this
has a major impact on the
channel as younger
generations prefer to find
information and purchase
insurance on line. In 2012,
these findings led us to join
our long term partner in South
Korea, Shinhan Bank, to
introduce long-term health
cover for the risk of cancer,
a sensitive issue among
Koreans. Available via Internet,
this offer targets all the
30-40 age bracket, a genera-
tion that intends to anticipate
health and retirement issues.
2012 Fundamental questions
Source: BNP Paribas Cardif
13. MArKets 2012 Fundamental questions bnp paribas CardiF 24 a 25
WHATARETHECOUNTRIES
THATHAVEDELIVERED
THEMOSTROBUSTGROWTH
ANDHAVETHEBESTOUTLOOK?
Question 09
BnP PAriBAs CArDiF ContinueD its GroWtH itinerArY in 2012 despite tHe Crisis
Climate and Flat results in its leGaCY domestiC marKets. tHis perFormanCe is
tHanKs to a strateGY tHat Has proVen suCCessFul For a deCade, anCHored in
robust international deVelopment, WitH an empHasis on emerGinG marKets.
16 In202040% OF THE WORLD’S MIDDLE
CLASS WILL LIVE IN ASIA
IN LATIN AMERICA,
BNP PARIBAS CARDIF HAS
214DISTRIBUTION PARTNERS*
MULTI-COUNTRY PARTNERS
REPRESENT MORE THAN HALF
OF OUR BUSINESS*
IN EUROPE,
WHAT IS YOUR ASSESSMENT
OF YOUR 2012 PERFORMANCE
IN YOUR RESPECTIVE
GEOGRAPHIES?
Pier-Paolo Dipaola: In conti-
nental Europe, certain coun-
tries like Poland and Germany
escaped the crisis and contin-
ued to drive growth, unlike the
Iberian peninsula. At the same
time, the Czech Republic and
Slovakia, both bordering Ger-
many, benefited from their
neighbour’s robust economy,
whereas the economies of
Romania and Croatia were
both depressed.
Xavier Guilmineau: Despite
the current economic context,
Asia continues to see high
growth. Through strategic alli-
ances with major banks in the
main markets – India, Japan,
South Korea, Taiwan, Thailand
and Vietnam – we’re able to
take advantage of this dynamic
development. Our partnerships
give us access to a potential
customer franchise of 200 mil-
lion people of whom we cur-
rently serve around 8%. So our
growth outlook is excellent.
Francisco Valenzuela: Like
Asia, most of the countries in
Latin America seem to have
escaped the economic crisis.
BNP Paribas Cardif covers six
countries in South and Central
America – Mexico, Peru, Colom-
bia, Brazil, Argentina and Chile.
We’re present in a variety of
distribution channels with a
mix of telemarketing, points of
sale, ATM machines and digital,
working with partner banks
and retailers and even several
state agencies.
ASIA AND LATIN AMERICA
ARE BOTH STRONG GROWTH
MARKETS FOR THE COMPANY.
WHY?
X. G. In the next ten years,
35% of global development in
life insurance will come from
Asia in particular. Given this
explosion of middle class
demographics, BNP Paribas
Cardif is a power lever for the
BNP Paribas Group to capture
this growth. To build out our
current organization we are
expanding in distribution as
we adapt to changing cus-
tomer practices in terms of
multichannel access and
extending our presence in
non-banking sectors.
F. V. Latin America counts
several countries where insur-
ance continues to enjoy steady
growth, starting with Brazil
and its seemingly irrepressible
expansion. Each time BNP Par-
ibas Cardif is ready to tap this
growth and expand our market
share. We’re already the leader
in bancassurance in Argentina,
Brazil, Colombia and Chile.
P.-P. D. In a challenging mar-
ket in Europe, we aim to main-
tain a positive trend by evolv-
ing our business model in
terms of products and distribu-
tion. In 2012 we systematically
reviewed our products to pro-
vide greater cover, fewer exclu-
sions, and make the policies
simpler. We also significantly
expanded our offers beyond
conventional creditor insur-
ance with extended warranties
and health care. In distribution,
we’re increasingly supporting
our partners in all their distri-
bution channels, from face-to-
face to phone to the Web.
GIVE US SOME EXAMPLES
OF HOW BNP PARIBAS CARDIF
CHANGING.
P.-P. D. In Europe and increas-
ingly on other continents,
we’re supporting many part-
ners who see our multi-coun-
try reach as an advantage,
coupled with our capacity for
diversification and innovation.
With Volkswagen Financial
Services, for example, we
recently introduced a war-
ranty extension product in
Poland and a Continue Driving
offer in Spain. This is a good
start towards our objective of
being the benchmark in insur-
ance partnerships.
X. G. Three years ago we
formed TCB Life, a life insur-
ance joint venture with Taiwan
Cooperative Bank (TCB), the
second-largest bank in Tai-
wan. Supported by BNP Pari-
bas Cardif, TCB has transi-
tioned from a conventional
single product bancassurance
model to a diversified range of
products sold in bank branches
and via telemarketing. In just
a few years TCB Life has
become a heavyweight in the
sector with leadership posi-
tions in unit-linked and credi-
tor insurance.
F. V. We fine-tuned several
of our best practices in 2012,
a multichannel partnership
with French retail group Car-
refour in Brazil and Argentina.
We replicated this model in
Colombia with Grupo Aval.
PIER-PAOLO DIPAOLA
DIRECTOR,
BNP PARIBAS CARDIF WESTERN,
EUROPE
XAVIER GUILMINEAU
DIRECTOR,
BNP PARIBAS CARDIF,
ASIA
FRANCISCO VALENZUELA
DIRECTOR,
BNP PARIBAS CARDIF,
LATIN AMERICA
Russia:
Sberbank, a promising
partnership
Russia has not been impacted
by the crisis. Thanks to a steady
revenue stream from oil and gas,
the country’s GDP has risen and
the partnership formed in 2009
between BNP Paribas Cardif
and Sberbank, Russia’s largest
lender, has continued. In a
regulatory framework inspired
by the European model, 2012
saw the creation of the Sberbank
insurance subsidiary, which
has drawn on expertise from
BNP Paribas Cardif in savings
and protection.
Turkey:
telemarketing channel
drives 100% growth
A partnership formed in 2012
between Yapi Kredi Life Pension
(a subsidiary of UniCredit)
and BNP Paribas Cardif Turkey
posted 30% growth in its
individual protection and savings
businesses. BNP Paribas Cardif’s
multichannel expertise enabled
the venture to significantly boost
the efficiency of its fast-growing
telemarketing platform.
Germany:
diversified partnership
portfolio
In a country that has been
largely unaffected by
unemployment, BNP Paribas
Cardif Germany works with a
broad range of partners: banks,
consumer credit firms, including
a close partnership with BNP
Paribas Personal Finance,
as well as the financing units
of automakers. The unit’s
contribution will help double
BNP Paribas revenues in
Germany by 2016.
* Source: BNP Paribas Cardif
14. DIGITAL 2012 Fundamental questions bnp paribas CARDIF 26 a 27
WHATDOYOUMEANWHENYOUSAY
YOUAIMTOBE
A“DIGITAL”INSURER?
Question 10
DIGITAL CHANNELS HAVE TOTALLY REDEFINED RELATIONSHIPS
BETWEEN CONSUMERS AND BRANDs,
BRINGING NEW TECHNOLOGIES, NEW USES AND NEW EXPECTATIONS.
BNP PARIBAS CARDIF IS EMBRACING THESE CHANGES, ADAPTING TO MAKE
DIGITAL A STRATEGIC GROWTH PRIORITY IN THE YEARS AHEAD.
2013 will consolidate
your digitalization,
WHAT about 2012?
Gregory Desfosses: We saw
very positive progress in 2012,
completing the first stage in the
digital strategy we initiated
in2009.Thisstrategycoversthree
areas:providingdigitalservicesfor
our partners, launching white
brand initiatives, and driving
innovations in products and
distribution. We’ve
introduced digital
business processes in
sevencountriesduring
the past three years,
most recently South
Korea. Our three main
regions – Europe, Asia
and Latin America –
are all now on the
same digital page.
In France, a very
mature market, BNP Paribas
Cardifdevelopedadigitalchannel
alongside existing channels. In
Brazil we see very promising
opportunities to accelerate
ourgrowthusingdigitalsolutions.
And in South Korea, the most
digital country in the world, this
channelisamustforanybusiness
that aiming for continued
growth.
is able to support its partners
as they roll out their own mul-
tichannel solutions. We’re
moving forward in interna-
tional markets with a host of
initiatives that leverage these
new resources, including
social media.
Tablets have also emerged as
a powerful tool, embedding
digital right at the point of
sale. In India we’ve run a suc-
cessful trial with our partner
SBI Life to equip 70,000 agents
to market our products in the
country. Similarly, in Belgium
our brokers can show rate sim-
ulations to potential customers
on smartphones or tables.
We’re present on social net-
works too, where we answer
customer questions and
dialogue with our partners.
WHAT TYPES OF NEW USES
HAVE YOU IDENTIFIED FOR
the CUSTOMERS?
G. D. Digital lets us create a
direct, real-time relationship
with the customers. There’s
more and more data circulat-
ing faster and faster, allowing
us to better identify expecta-
tions and propose truly tai-
lored responses. Digital thus
brings us closer to the custom-
ers in order to better serve
them. And these closer links
are amplified by the rising use
of mobile phones.
WHAT ABOUT YOUR OFFERS
ON MOBILES AND TABLETS,
AND WHAT ARE YOU DOING
ON SOCIAL NETWORKS?
G. D. Thanks to our digital
expertise, BNP Paribas Cardif
Turkey is very advanced in this
area. The potential of social
networks to deepen dialogue
with customers is huge.
WHAT ABOUT YOUR PLANS TO
CREATE THE CARDIF.FR ONLINE
INSURANCE STORE?
G. D. TheCardif.frstorereflects
anaturalevolutionofadistribu-
tion model that’s aligned with
new policyholder behaviour.
The Web is above all a
platform for informa-
tion. When people
want information on
an insurance solution
they naturally contact
an insurance com-
pany. This showcase
lets people discover
BNP Paribas Cardif,
our expertise, our
products and our ser-
vices. They will also be able to
purchase insurance online with
electronic signature, although
the majority ultimately prefer
to finalize the purchase by
phone or in a branch office.
In this case they can easily
contact our partners. Out of
France, similar approaches are
deployed in the United King-
dom and the Netherlands.
“The Internet in Asia
is strongly centred on the
‘social’ dimension. Usage has been
energized by social networks,
whereas in the West it ramped
up with search engines.”
60%OF THE BANKING RELATIONSHIP IN ASIA IS VIA
A MOBILE PHONE, COMPARED WITH 50% IN EUROPE
AND ALREADY 40% IN LATIN AMERICA. SMARTPHONES
ARE THUS A KEY PLATFORM
infrastructuresleadTHEEMERGENCE
OFTHEDIGITALENTERPRISE
Digital is transforming BNP Paribas Cardif at every
level of the organization. The Efficiency, Technology
and Operations (ETO) unit has launched a vast overhaul
of technical infrastructures and applications across
the company. It has also deployed teams to trial new
concepts within the framework of a full-fledged
“concept lab”. The objective is to lay the foundations
for a digital enterprise.
ELECTRONICSIGNATURE:
CUSTOMER-DRIVENCOLLABORATION
Digital development encompasses the entire company,
illustrated by our multi-disciplinary project to provide
a secure electronic signature solution*. Putting this
technological innovation online, with its health offer
notably, lets BNP Paribas Cardif gain in performance in
serving Web customers. This development is perfectly
aligned with their expectations for immediacy and
paperless relations. Online policy subscription with secure
payment using electronic signatures was introduced in 2012
in the Netherlands.
* A collaborative project spanning Legal, Marketing and IT teams.
A business that ignores the power of social networks
would be turning its back on a billion people*, all
contactable in a single click… BNP Paribas Cardif is
currently present on the majority of the planet’s major
social networks: Facebook, Google+, Twitter, Pinterest,
Linkedin, etc. The company is very active on these
platforms while paying close attention to its e-reputation.
* Facebook audience in 2012.
SOCIALNETWORKS:ABILLIONPOTENTIAL
CUSTOMERS,JUSTACLICKAWAY!
Join us
on BNP PARIBAS CARDIF
FACEBOOK
GRÉGORY DESFOSSES,
DIRECTOR DIGITAL CHANNEL,
BNP PARIBAS CARDIF
Source: BNP Paribas Cardif
15. INNOVATION 2012 Fundamental questions INDUSTRIAL PROCESSES bnp paribas CARDIF 28 a 29
WHATKIND
OFINNOVATION
DOYOUBRING
TOINSURANCE?
YOUMARKET
INSURANCECOVER,
BUTWHATABOUT
THERELATED
SERVICES?
Question 11 Question 12
WITH THE CHANGES THAT HAVE ALREADY REDEFINED
THE WAY WE DESIGN AND SELL OUR PRODUCTS,
CULTIVATING INNOVATION IS CRITICAL TO MAINTAIN
OUR COMPETITIVE ADVANTAGE. PUTTING THE CUSTOMER AT THE HEART
OF OUR PRIORITIES ALSO MEANS PROVIDING
IMPECCABLE SERVICE QUALITY TO
GUARANTEE HIGH LEVELS OF SATISFACTION.
“Each quarter, we invite a
panel our clients to contribute
input for the creation of new
offerts through the Board
Of Cardif Customers (BOC).”
MARIEKE VAN ZUIEN,
DIRECTOR CLIENTS CORPORATE,
BNP PARIBAS CARDIF in the NETHERLANDS
WHAT ARE THE PRIORITIES
FOR INNOVATION IN THE
INSURANCE INDUSTRY?
Cristina Cislaghi: If you
asked the people of
BNP Paribas Cardif what
“innovation” means you’d
be surprised at their
answers – a management
principle, a structured
community and more.
Because innovation is
about all this at an insur-
ance company. Being
the “insurer for a changing
world” means that we
must address the increas-
ingly demanding expecta-
tions of our customers
with our partners, taking
into account new consump-
tion trends. We also need
to integrate new regula-
tions and work more
simply and efficiently
while further optimizing
our risk management.
It would be impossible
to meet challenges
like these without a robust,
enterprise-wide culture of
innovation and creativity.
Concretely, the best way
to do this is to encourage
everyone across the
organization to express
their talent for innovation,
to reward risk taking and to
train people in using new
tools, among other things.
DOES THAT MEAN YOU’RE
ALREADY INVENTING THE
PRODUCTS AND SERVICES
OF TOMORROW?
C. C. We’ve really
embraced the challenge
of innovation by working
every day to rethink the
processes behind the
marketing and develop-
ment of our products and
services. We began with
very simple questions:
What will the profile of
tomorrow’s customers be?
What solutions will we
market them? Through
what channels? These are
the basic starting points.
Digital will be central to
the future of our insurance
products, but it isn’t the
only factor. We also need to
adapt our offer to the future
consumption environment
that is already emerging,
identifying the new risks
of contemporary life and
design new products and
services to cover them.
And the only way to meet
the challenge of innovation
is to draw on the creative
potential of all the stake-
holders – insurers, distri-
bution partners, the
consumers who purchase
insurance products, and
of course the company’s
people.
TECHNOLOGIES SHARPEN THE RELEVANCE OF INSURANCE SOLUTIONS
Innovation irrigates all BNP Paribas Cardif distribution channels, starting
with the digital domain. In 2012, BNP Paribas Cardif in Brazil ran a trial using
speedometer apps on new-generation smartphones to analyze the driving style
of a panel of drivers. The goal is to propose car cover adapted to the way they
use their vehicles. Another example is analysis of cybercrime and identity
theft to develop specific insurance cover.
HOW DO INDUSTRIAL PROCESSES
ADD VALUE FOR YOUR PARTNERS
AND THEIR CUSTOMERS,
HELPING YOU INCREASE END
CUSTOMER SATISFACTION?
Marieke Van Zuien: Customer
satisfaction is a key lever in
operational efficiency devel-
oped through our Efficiency,
Technology and Operations
(ETO) organization. The goal
is to make BNP Paribas Cardif
a customer-centric insurance
partner able to deliver proven
industrial processes. Currently
we’re accelerating the
optimization of the policy-
holder experience. People
need to be able to choose
when, where and how they
do business with us thanks to
a clear and easy to use process.
HOW DO YOU MANAGE THE
AFTER-SALES COMPONENT
OF AN INSURANCE POLICY?
M. Van Z. We believe the
customer experience needs to
increasingly become a series
of “moments of truth”. Today
people do not just want good
quality products at fair prices,
they also want their policy to
change as their needs change.
The best way to make this
happen is to solicit customer
feedback throughout the
duration of the contract, right
from the subscription and then
in the event of a claim or a
change to the policy. We have
to continually take customer
feedback into account to
measure their satisfaction.
HOW DOES THIS MAKE LIFE
SIMPLER FOR YOUR CUSTOMERS?
M. Van Z. We’ve taken
considerable steps to design
our products so they are as
clear as possible. For example,
we completely rewrote the
sales terms and conditions for
our insurance policies. The
goal is to make the coverage
easier to understand and make
sure the customer knows
exactly what to expect.
Digitizing our processes
supports this approach by
providing broader access to
our services, whether it’s for
submitting a claim, requesting
a copy of the insurance policy
or clicking on a call-me-back
button on a website.
“BNP Paribas
Cardif Italy
capitalizes on the
diversity of our
talents and skills.”
CRISTINA CISLAGHI,
DIRECTOR OF COMMUNICATION,
BNP PARIBAS CARDIF in ITALY
17. Head Office
1 Boulevard Haussmann
75009 Paris
France
Offices
8 rue du Port
92728 Nanterre Cedex
France
www.bnpparibascardif.com
382 983 922 RCS Paris
Limited company with capital of 149,959,922.20 €