Mobile Metrics: Consumer Approaches to Mobile Telephone Insurance in Europe

Table of Contents

0.0 EXECUTIVE SUMMARY

• Penetration rates in Germany, Italy and Spain lag far behind France and the UK...
• ... although the results suggest that cross-selling could advance into the 15%-30% bracket
• Packaging of mobile cover with household insurance poses a significant threat to stand-alone policies
• Mobile telephone network operators and retailers are the major distributors of insurance...
• ... although other channels and remote interfaces have made progress in certain markets
• Most sales of insurance are realised when the underlying telephony contracts are finalised
• Comparatively high levels of customer dissatisfaction indicate problems with churn and retention...
• ... although the percentage of satisfied mobile owners is consistent across all five territories

1.0 INTRODUCTION

• Finaccord
• European consumer research
• Mobile telephone insurance
• Creditor insurance
• Travel insurance
• European market, partnership and bancassurance research
• Research rationale
• Can major continental European markets follow the development witnessed in the UK?
• Research methodology
• The research embraces a total of over 6,250 respondents across the five countries
• Research strengths and weaknesses
• A mixed Internet and telephone research methodology produces balanced results...
• ... assisting insurance companies and other interested parties to benchmark their performance

2.0 EUROPEAN OVERVIEW

• Introduction
• % of respondents owning a mobile telephone
• Ownership of mobile telephones is close to saturation in all five countries
• % of mobile owners in possession of mobile telephone insurance
• Penetration rates for mobile telephone insurance have advanced furthest in the UK and France
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Latent demand for mobile telephone insurance appears to be highest in Spain
• Implied maximum penetration for mobile telephone insurance
• Insufficient supply and weak marketing impede market evolution in Germany, Italy and Spain
• Risks covered by mobile telephone insurance
• Mobile telephone insurance policies in the UK tend to offer more comprehensive cover...
• ... while those in Italy are least likely to afford protection against theft and unauthorised use
• Almost a quarter of mobile owners in the UK are protected in the event of the loss of their handset
• Policies paid for separately and packaging with household insurance
• Over a third of German mobile owners with insurance obtain it through their household policy...
• ... and over five times as many customers in the UK buy unbundled cover as occurs in Germany
• Distribution channels used for mobile telephone insurance
• Distribution choices can be analysed separately for consumers buying stand-alone policies
• Mobile telephone network operators and retailers account for the highest share of sales in France
• ... with banking institutions achieving better results than might have been expected in this field
• Distribution interfaces used for mobile telephone insurance
• Face-to-face sales constitute the dominant interface in all markets other than the UK...
• ... where use of remote interfaces accounts for around 70% of the distribution pie
• Mobile telephone insurance - point in time obtained
• An ineffective point of sale boosts retrospective marketing of mobile telephone policies in Germany
• Mobile owners are most likely to buy insurance irrespective of the specific moment in time
• Attitudes towards mobile telephone insurance of respondents with cover
• The percentage of mobile owners who value their insurance is consistent across all countries

3.0 FRANCE

• Introduction
• Research sample
• The research embraces a total of 1,232 respondents in France
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

4.0 GERMANY

• Introduction
• Research sample
• The research embraces a total of 1,210 respondents in Germany
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

5.0 ITALY

• Introduction
• Research sample
• The research embraces a total of 1,222 respondents in Italy
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

6.0 SPAIN

• Introduction
• Research sample
• The research embraces a total of 1,250 respondents in Spain
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

7.0 UNITED KINGDOM

• Introduction
• Research sample
• The research embraces a total of 1,340 respondents in the UK
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

GRAPHICS / TABLES

• Sample breakdown across five European countries by age group
• Sample breakdown across five European countries by annual household income
• % of respondents in five European countries owning a mobile telephone, 2006
• % of mobile owners in five European countries in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in five Euro. countries without cover, 2006
• Implied max. penetration rate for mobile telephone insurance among mobile owners in five Euro. countries, 2006
• Risks covered by mobile tele. ins. in five Euro. countries, 2006 (penetration among those with mobile tele. ins.)
• Risks covered by mobile telephone insurance in five Euro. countries, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in five Euro. counts. bet. pols. paid for sep. and pols. pack' d with house.ins., 2006 (1)
• Segment. of mob. tele. ins. in five Euro. counts. bet. pols. paid for sep. and pols. pack' d with house.ins., 2006 (1)
• Distribution channels used for mobile telephone insurance in five European countries, 2006
• Distribution interfaces used for mobile telephone insurance in five European countries, 2004-6
• Point in time chosen by respondents in five European countries to obtain mobile telephone insurance, 2006 (1)
• Point in time chosen by respondents in five European countries to obtain mobile telephone insurance, 2006 (2)
• % split of attitudes towards mobile telephone insurance of mobile owners in five Euro. countries with cover, 2006
• Sample breakdown in France by age group, household income band and geographical location
• % of respondents in France owning a mobile telephone, 2006
• % of respondents mobile owners in France in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in France, 2006
• Risks covered by mobile telephone insurance in France, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in France, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in France between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in France, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in France, 2006
• Point in time chosen by respondents in France to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in France with cover, 2006
• Sample breakdown in Germany by age group, household income band and geographical location
• % of respondents in Germany owning a mobile telephone, 2006
• % of respondents mobile owners in Germany in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Germany, 2006
• Risks covered by mobile telephone insurance in Germany, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in Germany, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in Germany between pols. paid for separately and pols. pack' d with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in Germany, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in Germany, 2006
• Point in time chosen by respondents in Germany to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Germany with cover, 2006
• Sample breakdown in Italy by age group, household income band and geographical location
• % of respondents in Italy owning a mobile telephone, 2006
• % of respondents mobile owners in Italy in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Italy, 2006
• Risks covered by mobile telephone insurance in Italy, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in Italy, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in Italy between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in Italy, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in Italy, 2006
• Point in time chosen by respondents in Italy to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Italy with cover, 2006
• Sample breakdown in Spain by age group, household income band and geographical location
• % of respondents in Spain owning a mobile telephone, 2006
• % of respondents mobile owners in Spain in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Spain, 2006
• Risks covered by mobile telephone insurance in Spain, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in Spain, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in Spain between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in Spain, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in Spain, 2006
• Point in time chosen by respondents in Spain to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Spain with cover, 2006
• Sample breakdown in the UK by age group, household income band and geographical location
• % of respondents in the UK owning a mobile telephone, 2006
• % of respondents mobile owners in the UK in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in the UK, 2006
• Risks covered by mobile telephone insurance in the UK, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in the UK, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in the UK between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in the UK, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in the UK, 2006
• Point in time chosen by respondents in the UK to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in the UK with cover, 2006