東歐・中歐地區債務償還保險

Abstract

Finaccord' s report titled Creditor Insurance in Eastern and South-Eastern Europe offers uniquely detailed insights into the market for creditor insurance, sometimes also referred to as payment protection insurance or loan-related insurance, in eight countries. While creditor insurance was worth slightly over €400 million in gross written premiums in the region in 2006, including coverage for life and permanent disability as well as the temporary disability and unemployment elements, rapid growth in retail lending and credit card markets should see it develop quickly in future years. Indeed, with sustainable growth likely in many markets and with profit margins relatively high, creditor insurance remains an attractive business for both lending institutions and underwriters to cultivate.

Drawing on the results of a survey of over 290 lending institutions in eight countries (Bulgaria, Croatia, Greece, Romania, Russia, Slovenia, Turkey and Ukraine), the report analyses the provision of creditor insurance by lending institutions, variances in provision by underlying lending product, operating models for provision of creditor insurance and partnership configurations. Moreover, the PartnerBASE™ database that accompanies the report details each of the c. 420 creditor insurance marketing initiatives traced by Finaccord. Together, the report and database will provide you with the definitive guide to current and future opportunities in creditor insurance in Eastern and South-Eastern Europe.

Table of Contents

0.0 EXECUTIVE SUMMARY

• Creditor insurance in Eastern and South-Eastern Europe is worth in excess of €400 million…
• … although Greece alone accounts for a significant proportion of this market total…
• … and the percentage attributable to policies covering temporary risks remains very low
• Most policies classifiable as creditor insurance possess relatively basic characteristics
• Even when adjusted for inflation, retail lending balances have been growing at a breakneck speed…
• … with the markets of Ukraine and Romania having made the most progress over the 2002-6 period
• Credit and other pay later cards, too, have accelerated to around 60 million in issue
• The supply structure for creditor insurance partnerships is generally fluid and fragmented…
• … although leading international specialists are beginning to establish a regional presence
• A number of factors will propel the region' s creditor insurance market forwards in the future…
• … with more advanced policies backed up by improved cross-selling likely to be important features
• Consumer metrics gathered in Europe' s five largest markets may prove instructive in this respect

1.0 INTRODUCTION

• Rationale
• Mainstream bancassurance markets in Europe are comparatively well documented…
• … whereas creditor insurance is not for a variety of reasons
• Creditor insurance: a poorly understood ‘third’ bancassurance market?
• Finaccord
• PartnerBASE™
• Methodology
• The vast majority of lending institutions in the region are classifiable as banks
• Definitions

2.0 REGIONAL OVERVIEW

• Introduction
• Inflation rates
• Relatively high rates of inflation must be accounted for when analysing local lending markets
• Market analysis - lending
• In deflated terms, the region' s combined market is growing at an average annual rate of 38.6%
• Romania and Ukraine achieve the highest deflated average annual growth in mortgage balances
• Russia overtakes Greece in 2005 to become the region' s largest non-mortgage retail credit market
• Growth rates for total retail lending balances differ substantially from country to country
• Average retail lending balances per capita for the region reach a modest €713.0 in 2006
• … with mortgage lending account for less than 50% of this figure
• Rapid growth in non-mortgage lending in Greece helps it to overtake Slovenia in per capita terms
• Non-mortgage credit declines as a proportion of total retail lending in all countries except Greece
• Turkey accounts for 54.1% of total credit and other pay later cards issued in the region in 2006…
• … with the rapidly growing Russian market likely to have overtaken the mature Greek market…
• … although cards issued in Turkey are at least double the number in Russia
• In terms of credit and other pay later cards per capita, Greece remains ahead of Turkey
• Market analysis - creditor insurance
• A lack of definitional clarity and a dearth of data make creditor insurance difficult to measure…
• … with other comparable forms of protection policy often marketed by lending institutions
• Broadly defined, the market is worth slightly in excess of €400 million in gross written premiums…
• … although only a small proportion is due to insurance for temporary incapacity and unemployment
• Mortgage-related policies represent the largest component of the market when defined broadly
• There is ample scope for creditor insurance to advance in Eastern and South-Eastern Europe…
• … especially given the known market size in more affluent European economies
• The use of multiple partners for creditor insurance is most widespread in Russia and Ukraine
• Consumer data - benchmarks from Europe' s five largest markets
• Mortgage borrowers are most likely to contract insurance to protect loan repayments
• Customers often protect their loan repayments indirectly through other types of protection policy
• Even in developed countries, only a minority of borrowers are insured against unemployment
• The original lending entities and card issuers are in pole position to cross-sell creditor insurance
• Most sales of creditor insurance are realised in a face-to-face environment…
• … and at the same time that the underlying lending facility is being arranged
• While some consumers find creditor insurance to be expensive, very few are totally dissatisfied

3.0 BULGARIA

• Introduction to the banking sector
• Overseas banking groups control around 70% of banking assets in Bulgaria
• Market analysis - lending
• Mortgage balances grow at almost twice the annual average rate of non-mortgage credit
• Penetration of credit cards remains extremely low although the market is growing rapidly
• Market analysis - creditor insurance
• Payment protection insurance is most likely to be offered in conjunction with mortgages
• UniCredit Clarima is the first lending institution in Bulgaria to introduce cover for unemployment
• Customer take-up rates
• A majority of lending institutions oblige borrowers to take out creditor insurance
• Competitor analysis - creditor insurance
• Three lending institutions utilise captive underwriters for provision of creditor insurance
• Vienna Insurance Group' s Bulstrad has built up the most bancassurance deals overall…
• … although it will face competition from creditor insurance specialists such as AIG and Cardif
• Future outlook
• Although not the region' s most attractive prospect, creditor insurance should enjoy rapid growth

4.0 CROATIA

• Introduction to the banking sector
• The banking sector remains relatively fragmented in spite of the influence of foreign groups
• Market analysis - lending
• Non-mortgage loans outstanding reach CrK 58.8 billion in 2006
• Credit cards per capita in Croatia are only slightly over a half of that for neighbouring Slovenia
• Market analysis - creditor insurance
• Many of Croatia' s independent local banks have yet to launch creditor insurance programs
• Over two thirds of creditor insurance policies identified provider basic cover for death only
• Customer take-up rates
• On average, cross-selling rates for creditor insurance fall below the 50% threshold in Croatia
• Competitor analysis - creditor insurance
• Several important banking institutions collaborate with more than one insurance provider
• Most insurance companies in Croatia lay claim to at least one bancassurance partnership
• Future outlook
• Prospects may be brightest in the market for mortgage-related creditor insurance policies

5.0 GREECE

• Introduction to the banking sector
• Foreign influence in the Greek banking market is increasing steadily
• Market analysis - lending
• Non-mortgage credit achieves a slightly higher average annual growth rate than mortgage lending
• Of the eight credit card markets considered, that of Greece is the most mature
• Market analysis - creditor insurance
• Few credit card issuers in Greece have yet introduced payment protection insurance
• HSBC is the pioneer of unemployment cover in the Greek market
• Customer take-up rates
• A majority of lending institutions oblige borrowers to take out creditor insurance
• Competitor analysis - creditor insurance
• Seven of the lending institutions surveyed source creditor insurance from captive underwriters
• Numerous providers of creditor insurance are competing for mandates with Greek banks
• The ownership of both Alpha Insurance and ING Piraeus Life has changed in recent times
• Future outlook
• There are firm grounds for supposing that creditor insurance should make strong progress

6.0 ROMANIA

• Introduction to the banking sector
• Numerous overseas competitors have entered the Romanian banking market in recent years
• Market analysis - lending
• The value of long-term loans outstanding in Romania more than doubles in 2006…
• … with the number of credit and other pay later cards surging ahead in 2005 and 2006
• Market analysis - creditor insurance
• Many institutions active in non-mortgage lending have yet to launch any form of creditor insurance
• There is still plenty of scope for coverage for temporary incapacity and unemployment to grow
• Customer take-up rates
• A significant proportion of lending institutions compel borrowers to take out creditor insurance
• Competitor analysis - creditor insurance
• Most lending institutions collaborate with a single partner for provision of creditor insurance…
• … although a handful of banks work with captive or sister insurance companies
• Most underwriters of loan-related insurance possess a single bancassurance relationship each
• Future outlook
• An encouraging outlook for creditor insurance attracts Cardif to enter the market in early 2007

7.0 RUSSIA

• Introduction to the banking sector
• The top 50 banks control in the region of 80% of Russia' s banking assets…
• … with the influence of foreign institutions steadily increasing over time
• Market analysis - lending
• Unadjusted for inflation, retail lending balances in 2006 are more than 15 times their level in 2002
• Russian Standard Bank and other credit card issuers generate dynamic growth in 2005 and 2006
• Market analysis - creditor insurance
• Excluding credit cards, a majority of banks offering retail loans offer creditor insurance…
• … although Russia' s largest bank, Sberbank, had not initiated any activity by June 2007
• Only a small minority of lenders include cover for temporary incapacity as a standard feature
• Customer take-up rates
• Acquisition of creditor insurance is almost always compulsory for mortgage borrowers…
• … although is usually a voluntary purchase in the case of non-mortgage retail credit
• Competitor analysis - creditor insurance
• Most banks source creditor insurance policies from a panel of approved underwriters…
• … although a small proportion operate through captive insurance entities
• AIG Life is the current partner of both Citibank and GE Money for creditor insurance…
• … while Aviva' s Russian subsidiary holds a bancassurance portfolio of over 200,000 customers
• Future outlook
• Russia remains a problematic market in spite of some promising underlying metrics

8.0 SLOVENIA

• Introduction to the banking sector
• The indigenous NLB grouping controls over 40% of Slovenia' s banking assets…
• … with a majority of foreign entrants hailing from neighbouring Austria
• Market analysis - lending
• Mortgage lending balances grow at over four times the average rate of non-mortgage credit
• The number of credit and other pay later cards per capita is moving up at a modest rate
• Market analysis - creditor insurance
• Smaller banks and motor finance specialists have yet to introduce creditor insurance schemes
• Two banks have introduced cover for unemployment, albeit in a limited format
• Customer take-up rates
• Acquisition of creditor insurance among borrowers in Slovenia appears always to be voluntary
• Competitor analysis - creditor insurance
• Apart from NLB' s joint venture with KBC, all relationships are with single, external partners
• Most insurance groups in Slovenia possess one major bancassurance relationship each
• Future outlook
• Further consolidation among Slovenia' s banks could create greater bancassurance opportunities

9.0 TURKEY

• Introduction to the banking sector
• Three state-owned banks continue to exert a considerable influence on the banking market…
• … although the country has seen an influx of acquisitive foreign entrants since early 2005
• Market analysis - lending
• Mortgage lending balances surge at an average rate of 144.9% between 2002 and 2006
• The number of credit and other pay later cards issued has broken through the 30 million mark
• Market analysis - creditor insurance
• A quarter of credit card issuers have introduced creditor insurance in one form or another
• Most creditor insurance products in Turkey amount to no more than basic life insurance policies
• Customer take-up rates
• For mortgage borrowers, buildings cover is more likely to be compulsory than creditor insurance
• Competitor analysis - creditor insurance
• Banks utilise a variety of operating models in the context of payment protection insurance…
• … with Turkey characterised by a highly fragmented supply structure for creditor insurance
• Future outlook
• There is significant potential for the introduction of more comprehensive policies in Turkey…
• … although there are several barriers to overcome, such as an under-developed insurance culture

10.0 UKRAINE

• Introduction to the banking sector
• Until recently, Ukraine' s banking system was beset by a plethora of restraints…
• … although the growing interest of foreign entrants is helping to remedy matters
• Market analysis - lending
• Both mortgage and non-mortgage balances advance at an average rate in excess of 100%
• … with the market for credit and other pay later cards also booming from a very low base
• Market analysis - creditor insurance
• Mortgage lending in Ukraine is characterised by the ubiquitous provision of creditor insurance
• Cover for temporary risks can sometimes be incorporated on a negotiated basis
• Customer take-up rates
• Acquisition of creditor insurance is made compulsory by a majority of banks offering mortgages
• Competitor analysis - creditor insurance
• Most banks collaborate with a variety of insurers when it comes to sourcing creditor insurance…
• … although captive insurance entities are utilised in a minority of cases
• Several Ukrainian banks are tied to a single bancassurance partner…
• … and Uniqa Life may well become the preferred partner of Raiffeisen Bank Aval
• Future outlook
• For some years, the image of Ukraine' s insurance sector has been marred by prior mis-selling…
• … although development potential is now emerging, especially for the key 20-40 age bracket

GRAPHICS / TABLES

• Entities contacted for the research in Eastern and South-Eastern Europe, segmented by type and by country
• Inflation rates in Eastern and South-Eastern Europe segmented by country, 2002-6
• Inflation rates in Eastern and South-Eastern Europe segmented by country, 2002-6 (data)
• Total retail lending balances outstanding in E / S-E Europe segmented by country, 2002-6 (adjusted)
• Total retail lending balances outstanding in E / S-E Europe segmented by country, 2002-6 (adjusted) (data)
• Retail mortgage balances outstanding in E / S-E Europe segmented by country, 2002-6 (adjusted)
• Retail mortgage balances outstanding in E / S-E Europe segmented by country, 2002-6 (adjusted) (data)
• Retail non-mortgage balances outstanding in E / S-E Europe segmented by country, 2002-6 (adjusted)
• Retail non-mortgage balances outstanding in E / S-E Europe segmented by country, 2002-6 (adjusted) (data)
• Size versus adjusted growth in total retail lending balances outstanding in E / S-E Europe, 2002-6
• Size versus adjusted growth in retail mortgage balances outstanding in E / S-E Europe, 2002-6
• Size versus adjusted growth in retail non-mortgage balances outstanding in E / S-E Europe, 2002-6
• Total retail lending balances outstanding per capita in E / S-E Europe segmented by country, 2002-6 (adjusted)
• Total retail lending bals. outstanding per capita in E / S-E Europe segmented by country, 2002-6 (adjusted) (data)
• Retail mortgage balances outstanding per capita in E / S-E Europe segmented by country, 2002-6 (adjusted)
• Retail mortgage balances outstanding per capita in E / S-E Europe segmented by country, 2002-6 (adjusted) (data)
• Retail non-mortgage balances outstanding per capita in E / S-E Europe segmented by country, 2002-6 (adjusted)
• Retail non-mortgage bals. outstanding per capita in E / S-E Europe segmented by country, 2002-6 (adjusted) (data)
• Retail non-mortgage bals. outstanding as % of total retail lending bals. outstanding in E / S-E Europe, 2002-6
• Retail non-mortgage bals. outstanding as % of total retail lending bals. outstanding in E / S-E Europe, 2002-6 (data)
• Total number of credit / pay later cards in issue in Eastern and South-Eastern Europe, 2002-6
• Total number of credit / pay later cards in issue in Eastern and South-Eastern Europe, 2002-6 (data)
• Size versus growth in credit / pay later cards in issue in Eastern and South-Eastern Europe, 2002-6
• Total number of credit / pay later cards in issue per capita in Eastern and South-Eastern Europe, 2002-6
• Total number of credit / pay later cards in issue per capita in Eastern and South-Eastern Europe, 2002-6 (data)
• Approx. value of the creditor ins. mkt. in E / S-E Europe, broadly and narrowly defined, seg. by country, 2006
• Approx. val. of the creditor ins. mkt. in E / S-E Europe, broadly and narrowly defined, seg. by und. product, 2006
• Approx. val. of the creditor ins. mkt. in E / S-E Europe, broadly defined, seg. by country and und. lend. prod., 2006
• Approx. val. of the creditor ins. mkt. in E / S-E Europe, broadly def., seg. by count. and und. lend. prod., 2006 (data)
• Approx. val. of the creditor ins. mkt. in E / S-E Europe, narrowly defined, seg. by country and und. lend. prod., 2006
• Approx. val. of the creditor ins. mkt. in E / S-E Europe, narrowly def., seg. by count. and und. lend. prod., 2006 (data)
• Segmentation of operating models used for creditor insurance in Eastern and South-Eastern Europe, 2007
• Segmentation of operating models used for creditor insurance in Eastern and South-Eastern Europe, 2007 (data)
• Overall take-up rates for ins. prot. loan repays. among bwrs. in Eu' s five largest mkts. split by lend. prod., 2006
• Ove. take-up rates for ins. prot. loan repays. among bwrs. in Eu' s five largest mkts. split by lend. prod., 2006 (data)
• Types of policy held among bwrs. with ins. to prot. loan repays. in Eu' s five largest mkts. split by lend. prod., 2006
• Types of pol. held among bwrs. with ins. to prot. loan repay. in Eu' s five largest mkts. split by lend. prod., 2006 (data)
• Risks covered among all borrowers in Europe' s five largest markets split by type of lending product, 2006
• Risks covered among all borrowers in Europe' s five largest markets split by type of lending product, 2006 (data)
• Dist. chns. used by bwrs. with ins. to prot. loan repays. in Eu' s five largest mkts. split by type of lend. prod., 2006
• Dist. chns. used by bwrs. with ins. to prot. loan repays. in Eu' s five larg. mkts. split by type of lend. prod., 2006 (data)
• Dist. ints. used by bwrs. with ins. to prot. loan repays. in Eu' s five largest mkts. split by type of lend. prod., 2006
• Dist. ints. used by bwrs. with ins. to prot. loan repays. in Eu' s five largest mkts. split by type of lend. prod., 2006 (data)
• Time chosen by bwrs. to obt. ins. to prot. loan repays. in Eu' s five largest mkts. split by type of lend. prod., 2006
• Time chosen by bwrs. to obt. ins. to prot. loan repays. in Eu' s five larg. mkts. split by type of lend. prod., 2006 (data)
• Satis. levels among bwrs. with ins. to prot. loan repays. in Eu' s five largest mkts. split by type of lend. prod., 2006
• Satis. levels among bwrs. with ins. to prot. loan repays. in Eu' s five larg.mkts. split by type of lend. prod., 2006 (data)
• Size and growth of the retail lending market in Bulgaria, 2002-6
• Number of credit and pay later cards in issue and per capita in Bulgaria, 2002-6
• Approximate gross written premiums for creditor insurance in Bulgaria segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Bulgaria, 2007
• Risks covered by creditor insurance policies in Bulgaria, 2007
• Average customer take-up rates for creditor insurance policies by product in Bulgaria, 2007
• Operating models for creditor insurance in Bulgaria, 2007
• Partner market shares for creditor insurance in Bulgaria, 2007
• Size and growth of the retail lending market in Croatia, 2002-6
• Number of credit and pay later cards in issue and per capita in Croatia, 2002-6
• Approximate gross written premiums for creditor insurance in Croatia segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Croatia, 2007
• Risks covered by creditor insurance policies in Croatia, 2007
• Average customer take-up rates for creditor insurance policies by product in Croatia, 2007
• Operating models for creditor insurance in Croatia, 2007
• Partner market shares for creditor insurance in Croatia, 2007
• Size and growth of the retail lending market in Greece, 2002-6
• Number of credit and pay later cards in issue and per capita in Greece, 2002-6
• Approximate gross written premiums for creditor insurance in Greece segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Greece, 2007
• Risks covered by creditor insurance policies in Greece, 2007
• Average customer take-up rates for creditor insurance policies by product in Greece, 2007
• Operating models for creditor insurance in Greece, 2007
• Partner market shares for creditor insurance in Greece, 2007
• Size and growth of the retail lending market in Romania, 2002-6
• Number of credit and pay later cards in issue and per capita in Romania, 2002-6
• Approximate gross written premiums for creditor insurance in Romania segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Romania, 2007
• Risks covered by creditor insurance policies in Romania, 2007
• Average customer take-up rates for creditor insurance policies by product in Romania, 2007
• Operating models for creditor insurance in Romania, 2007
• Partner market shares for creditor insurance in Romania, 2007
• Size and growth of the retail lending market in Russia, 2002-6
• Number of credit and pay later cards in issue and per capita in Russia, 2002-6
• Approximate gross written premiums for creditor insurance in Russia segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Russia, 2007
• Risks covered by creditor insurance policies in Russia, 2007
• Average customer take-up rates for creditor insurance policies by product in Russia, 2007
• Operating models for creditor insurance in Russia, 2007
• Partner market shares for creditor insurance in Russia, 2007
• Size and growth of the retail lending market in Slovenia, 2002-6
• Number of credit and pay later cards in issue and per capita in Slovenia, 2002-6
• Approximate gross written premiums for creditor insurance in Slovenia segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Slovenia, 2007
• Risks covered by creditor insurance policies in Slovenia, 2007
• Average customer take-up rates for creditor insurance policies by product in Slovenia, 2007
• Operating models for creditor insurance in Slovenia, 2007
• Partner market shares for creditor insurance in Slovenia, 2007
• Size and growth of the retail lending market in Turkey, 2002-6
• Number of credit and pay later cards in issue and per capita in Turkey, 2002-6
• Approximate gross written premiums for creditor insurance in Turkey segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Turkey, 2007
• Risks covered by creditor insurance policies in Turkey, 2007
• Average customer take-up rates for creditor insurance policies by product in Turkey, 2007
• Operating models for creditor insurance in Turkey, 2007
• Partner market shares for creditor insurance in Turkey, 2007
• Size and growth of the retail lending market in Ukraine, 2002-6
• Number of credit and pay later cards in issue and per capita in Ukraine, 2002-6
• Approximate gross written premiums for creditor insurance in Ukraine segmented by underlying product, 2006
• Lender penetration of creditor insurance policies by product in Ukraine, 2007
• Risks covered by creditor insurance policies in Ukraine, 2007
• Average customer take-up rates for creditor insurance policies by product in Ukraine, 2007
• Operating models for creditor insurance in Ukraine, 2007
• Partner market shares for creditor insurance in Ukraine, 2007