‘Buy it anyway you want, but buy it from our company!’
APPENDICES
Christa Langendonk
Tom Tenniglo
2 TABLE OF CONTENTS
APPENDIX 1. ORGANIZATIONAL STRUCTURE EUREKO 3 APPENDIX 2. ACCIDENTAL DEATH COVER CAMPAIGN 4 APPENDIX 3. COMPANIES PARTICIPATING IN COMPETITOR SURVEY 5 APPENDIX 4. COVER LETTER COMPETITOR QUESTIONNAIRE 6
APPENDIX 5. COMPETITOR QUESTIONNAIRE 7
APPENDIX 6. QUESTIONNAIRE DESIGN 16
APPENDIX 7. QUESTIONAIRE ANALYSIS 18
7.1 Number of employees and distribution channels 18 7.2 Number of distribution channels 18 7.3 Channel/product combination 19 7.4 Percentage of sales per channel 19 7.5 Income segmentation 20 7.6 Price differentiation 20 7.7 Brand differentiation 20 7.8 Geographical segmentation 21 7.9 Channel support 21 7.10 Channel profitability 22 7.11 Channel conflict 22 7.12 Future channel use 22
3 APPENDIX 1. ORGANIZATIONAL STRUCTURE EUREKO
Main Associates
EUREKO B.V.
Achmea Friends First Imperio France Interamerican Union
Romania
Cyprus Bulgaria
F&C PZU
The Netherlands 100%
Ireland 100%
Slovakia 100%
Greece 98.83%
France 100%
33% 20.95%
APPENDIX 2. ACCIDENTAL DEATH COVER CAMPAIGN
--- Client Segment: existing clients with Life & Health insurance policies
Campaign Duration: 8 months, from September 2003 to April 2004 Segment Size: 163.569 policyholders
The Offer: clients were offered and Accidental Death Rider for €30.000 sum insured with
€3.000 free cover for 12 months if they did not have life cover, and the same sums insured as additional cover if they were already insured. Two approaches were used depending on family status.
The Mail Out - Personalized letter
- Premium payment notification with options - Advertising brochure
- Envelope with messaging Campaing Results:
- Sales rate: 21.17%
- Premiums: €1.503.102
---
5 APPENDIX 3. COMPANIES PARTICIPATING IN COMPETITOR SURVEY
*Underlined competitors participated in the survey
*Underlined competitors participated in the survey COMPANIES
NON-LIFE
Non life premiums 2004
Market shares 2004
Market shares 2003
Ethniki 289.995.500 15,4% 17,8%
Phoenix metrolife emporiki
146.100.000 7,8% 9,1%
Interamerican 133,310,000 7,1% 5,7%
Agrotiki 114.699.934 6,1% 6,2%
Alpha 77.276.430 4,1% 4,1%
International union 69.401.725 3,7% 2,9%
Intersalonika 69.191.080 3,7% 2,9%
Egnantia 64.829.249 3,4% 2,9%
Allianz 61.151.735 3,3% 3,5%
Commercial value 53.944.699 2,9% 3,3%
TOTAL: 1.884.591.713 57,5% 58,4%
COMPANIES LIFE
Life premiums 2004 Market Share 2004
Market Share 2003
Interamerican 263.300.000 15,23% 16,98%
EFG 251.800.000 14,57% 4,10%
Ethniki 246.600.000 14,26% 15,89%
Alico 192.281.600 11,12% 13,75%
ING 169.036.000 9,78% 11,75%
Aspis 96.782.400 5,6% 6,11%
Allianz 93.809.349 5,43% 5,66%
Metrolife 76.500.000 4,43% 5,66%
Agrotiki 68.897.200 3,99% 6,80%
Alpha 68.522.000 3,96% 4,10%
TOTAL: 1.527.52 8.549 88,4% 90,80%
6 APPENDIX 4. COVER LETTER COMPETITOR QUESTIONNAIRE
Groningen, 29 June 2005
Dear Madam/Sir,
In order to finish our MBA from Groningen University in the Netherlands we are doing a research on the Greek insurance market for which we would very much appreciate your cooperation.
An important development in the European market is the trend towards the use of multi distribution channels. Multiple sales channels have provided insurance companies with new ways of reaching out to their customers. This trend, however, seems not to be as much developed yet in the insurance industry in Greece. Therefore, we would like to research the current use of distribution channels and possible future intentions by the main players in the Greek insurance market in order to identify the direction in which the market will possibly develop.
Unfortunately, it is very difficult to collect relevant and representative data on the Greek insurance companies because of a lack of information from public resources.
In order to successfully complete our final research thesis and graduate from Groningen University, we therefore kindly ask you to help us by filling in the simple questionnaire about your distribution channel use. The questionnaire is added to this e-mail as an attachment and contains eleven questions which will take approximately 10 minutes to fill in.
All the information will be treated confidentially and completely anonymous. This means that the information will only be used for university purpose and of course company names will not be mentioned.
We, again, ask for your cooperation by filling in this questionnaire within the coming two weeks (the latest until the 15th of July). As a token of our appreciation, the main results of this questionnaire can be send to you by e-mail in order to give you an overview of the channel use in the Greek insurance market.
The completed questionnaire can be returned to s1267922@student.rug.nl or
s1230387@student.rug.nl and any questions can be send to these e-mail addresses as well.
Thank you very much in advance!
Kind regards,
Tom Tenniglo & Christa Langendonk Faculty of Management & Organization Groningen University
The Netherlands
7 APPENDIX 5. COMPETITOR QUESTIONNAIRE
Questionnaire Multi Distribution Channels Definitions
Before we start with the questionnaire, in order to avoid any miscommunication, we will first give some definitions of key terms that we use in this research.
Direct sales: distribution channels through which insurance products are directly sold to customers (direct sales force employees/direct mail/
telemarketing)
NOTE: in this research the internet is defined as separate distribution channel
Tied agents: a person which sells insurance products from only one producer based on commissions
Broker: a person or firm which sells insurance products from its own account (based on specific agreements with multiple insurance producers)
Broker dealer: a person or firm which sells insurance products by matching a buyer with a seller (not based on specific agreements with insurance producers)
Bancassurance: a network of owned/non-owned bank branches that sell insurance products
8
Questionnaire Multi Distribution Channels
Question 1
Company size can be of influence on the number of distribution channels used by companies. In this research, the size of a company is indicated by the number of employees that the company employs.
How many employees does your company approximately employ?
Question 2
How many distribution channels are currently used by your company to sell its products to the final customer?
(Please tick the appropriate box)
1 4
2 5
3 6
9 Question 3
Which distribution channels are currently used by your company to sell its Life and Non-Life insurance products?
(Please tick the appropriate boxes. The definitions of key terms used in this questionnaire are covered on the second page of the document)
Banc- assurance
Brokers Tied agents
Direct sales
Internet Broker dealers Life
Disability Pension
Health Savings
P&C Road Assistance
Question 4
What is the approximate percentage of sales (regarding premiums) in Life and P&C insurance business through each channel your company makes use of?
(the total of Life as well as P&C should sum 100% horizontally)
Banc- Ass.
Brokers Tied agents
Direct sales
Internet Broker dealers
Total
Life 100%
P&C 100%
10 Question 5
What markets are being served by the different channels that your company makes us off?
(Please tick the appropriate boxes)
Low income market = Gross household income lower then EUR 10.000 Middle income market = Gross household income between EUR 10.000 and EUR 25.000
Upper income market = Gross household income greater then EUR 25.000
Low income market
Middle income market
Upper income market
All income markets Bancassurance
Brokers Tied agents Direct sales Internet Broker dealers
Question 6
Using a multi distribution channel strategy has consequences on the pricing policy;
every channel has its own cost structure. In the European insurance business you see companies using the same price policy through all channels and companies using price differentiation.
Suppose that the price of a life product is €100 if it is sold through the tied agent channel. What would approximately be the price if the same product is being sold through other channels that your company makes use of?
Banc- assurance
Brokers Tied agents
Direct sales
Internet Broker dealers
Price 100
11
Question 7
Does your company make use of different corporate and/or product brands when it sells its insurance products through different channels?
(Please tick the appropriate box)
Yes No
Corporate brands Product brands
Question 8
What cities/regions are covered with the distribution channels that your company makes use of?
(Please tick the appropriate boxes)
Banc assurance
Brokers Tied agents
Direct sales
Broker dealers All of Greece
Athens Thessaloniki Patra
Other big cities (> 30.000 inhabitants)
Rest of Greece
12 Question 9
In what way does the marketing and sales department of your company support the several channels?
(Please tick the appropriate boxes)
Banc assurance
Brokers Tied agents
Direct sales
Internet Broker dealers Sales managers
Specialized Call Center Marketing &
Sales materials Extranet
Advertisements Events
Question 10
Please rank the distribution channels currently used by your company from 1 - 6 on its profitability per unit sold
1 = very high profitability 6= very low profitability
Banc assurance
Brokers Tied agents
Direct sales
Internet Broker dealers Ranking
from 1-6
13 Question 11
When introducing new distribution channels, conflict issues can possibly occur.
Multiple channel conflict occurs when one channel coalition perceives that another is engaged in behavior that prevents or impedes the first from achieving its goals. As the number of distribution channels used by a company increases, so does the potential for channel conflict.
Channel conflicts can be divided into four types of channel conflict (explained below):
Conflict Type Description
1) Same producer different channels recruiting or contracting the
same producer
2) Compensation and perceived inequity in compensation and
incentives incentives among channels
3) Home office procedures perceived inequity in home office procedures and services and services, having confusing and complicated procedures
4) Same customer different channels selling to the same customer
What types of conflicts did your company experience handling multiple channels?
(Please tick the appropriate boxes)
Same producers
Compensation and incentives
Home office procedures and services Same customers
No conflicts occurred
14 Question 12
What are your plans for the future use of multi distribution channels?
(Please tick the appropriate boxes)
Increase Stay the same Decrease No use Bancassurance
Brokers Tied agents Direct sales Internet Broker dealers
Any comment on this questionnaire can be placed in the box below
15 Thank you very much for taking the time to complete this questionnaire. If you
have any queries please do not hesitate to contact Tom Tenniglo or Christa Langendonk by sending an e-mail to s1230387@student.rug.nl or
s1267922@student.rug.nl.
Please return the completed questionnaire by the end of July to one of the e-mail addresses above.
Kind regards,
Tom Tenniglo & Christa Langendonk
16 APPENDIX 6 QUESTIONNAIRE DESIGN
QUESTIONNAIRE DESIGN (a)
QUESTION QUESTION TYPE PURPOSE How many distribution channels
are currently used by your
company to sell its products to the final customer?
Category question To get an overview of the type and number of channels used
Which distribution channels are currently used by your company to sell its Life and
Non-Life insurance products?
List question in a grid
To see if there is a relation between the type of channel and type of product
What is the approximate percentage of sales (regarding premiums) in Life and P&C insurance business through each channel your company makes use of?
Quantity questions To see what channels sell best in the Life and P&C insurance business. By phrasing the question this way, a direct question about sales, and thus the risk of a non-response on this question, is avoided.
What markets are being served by the different channels that your company makes use off?
List question in a grid
To uncover if companies use specific channels for different markets.
Suppose that the price of a life product is €100 if it is sold through the tied agent channel.
What would approximately be the price if the same product is being sold through other channels that your company makes use of?
Quantity question To see if companies apply price differentiation when a product is sold through a different channel.
Does your company make use of different corporate and/or product brands when it sells its insurance products through different channels?
Category question in a grid
To uncover if companies use a different corporate of product brand when sold through another channel.
What cities/regions are covered with the distribution channels that your company makes use of?
List question in a grid
To see if channel use is tied to a specific region or city (for example the internet channel only used in big cities).
17 QUESTIONNAIRE DESIGN (b)
QUESTION QUESTION TYPE PURPOSE In what way does the marketing
and sales department of your company support the several channels?
List question in a grid
To see in what way companies support their channels in order to optimize its operation and if they support some channels more heavily than others.
Please rank the distribution channels currently used by your company from 1 - 6 on its profitability per unit sold
Ranking question To see if the channels with the highest sales are the most profitable as well: it puts the channels in a cost perspective What types of conflicts did your
company experience handling multiple channels?
List question To uncover if conflicts occur often when companies make use of multiple channels.
What are your plans for the future use of multi distribution channels?
Category question in a grid
To see if there is a trend towards a certain channel in the future.
Do you have any comments? Open-ended question
To give the respondents the possibility to ask questions or place a comment.
18 APPENDIX 7. QUESTIONAIRE ANALYSIS
7.1 NUMER OF EMPLOYEES AND DISTRIBUTION CHANNELS
COMPANY EMPLOYEES CHANNELS AVERAGE
X 300 4 75
X 400 5 80
X 1165 3 383.3
X 450 4 112.50
X 600 6 100
X 1200 4 300
X 250 4 62.50
X 700 1 700
X 580 5 116
AVERAGE TOTAL: 672 4 168
7.2 NUMBER OF DISTRIBUTION CHANNELS
Number of Distribution Channels
0 1 2 3 4
1 2 3 4 5 6
Number of Channels Number of Companies
19
7.3 CHANNEL PRODUCT COMBINATION
7.4 PERCENTAGE OF SALES PER CHANNEL
Percentage of Sales through each Channel
0 10 20 30 40 50 60 70 80
Bankassurance
Brokers Tied Ag
ents Direct Sa
les
Internet Broker De
alers
LIFE NON-LIFE Channel - Product Combination
0 20 40 60 80 100
Life
Disability
Pension
Health Savings
P&C Road Assistance
Bankassurance Brokers Tied Agents Direct Sales Internet Broker Dealers
20
7.5 INCOME SEGMENTATION
LOW MIDDLE UPPER ALL
Bank Assurance 2.64 2.64 2.64 11.88
Brokers - 1.32 2.64 19.8
Tied Agents - 2.64 2.64 19.8
Direct Sales 1.32 2.64 1.32 11.88
Internet 1.32 - - -
Broker Dealers - - 1.32 11.88
TOTAL 5.28 9.24 10.56 75.24
7.6 PRICE DIFFERENTIATION
7.7 BRAND DIFFERENTIATION
YES NO
CORPORATE BRANDS 2 6
PRODUCT BRANDS 1 7
TOTAL 3 13
Price of a Life Product Compared to Tied Agent Channel
0 20 40 60 80 100 120
Bank assurance
Brokers Direct Sales Internet Broker Dealers
Lower Same Higher
21
7.8 GEOGRAPHICAL SEGMENTATION
Covered Regions
0%
20%
40%
60%
80%
100%
Bank As surance
Brokers
Tied Agent s
Direct Sa les
Broker Deal ers
Rest of Greece Other big cities (>
30.000 inhabitants) Patra
Thessaloniki Athens All of Greece
7.9 CHANNEL SUPPORT
Channel Support
0 50 100
Sales Managers
Specialized Call Centres
Marketing & Sales Materials
Extranet Advertisements
Events Bankassurance
Brokers Tied Agents Direct Sales Internet Broker Dealers
22
7.10 CHANNEL PROFITABILITY
7.11 CHANNEL CONFLICT
TYPE OF CONFLICT NUMBER OF COMPANIES
Same Producers 2
Compensation and incentives 2
Home office procedures and services 0
Same customers 4
No conflicts 2
7.12 FUTURE CHANNEL USE
Profitability per unit sold (low - high)
0 1 2 3 4 5 6
Bank assurance Brokers Tied Agents Direct Sales Broker Dealers
Future Distribution Channel Use
0%
20%
40%
60%
80%
100%
Bank Assurance Brokers Tied AgentsDirect Sales Internet
Broker Dealers
No use Decrease Stay the same Increase
