ICMIF-AOA Development Network SeminarManila, September 19, 2013

Can mutual insurance evolve into the mainstream?

Marc Beaujean

Agenda

• Mutual / Cooperative market

• The P&V journey• Our strategy: how we

strike a balance between social and financial goals

• Conclusions

2007 2008 2009 2010 20110

50,000

100,000

150,000

200,000

250,000

300,000

350,000

20%

25%

30%

22.6%

25.2%

26.0%

27.4%28.1%

Premiums and market share

Premiums Market share

EUR

(mill

ions

)Europe

Source: ICMIF

Europe

Mutual Market Share 2011

Mutual market share increased by

a quarter during the period 2007-

2011, growing from 22,6% to 28,1%

Source: ICMIF

Source: ICMIF

The 17 Largest Mutual Non-

Life Insurers in Europe in 2011

Most of them in TOP 10

oflocal market

Top 10

(*)

(*)

(*)

(*) : in selected segments

Agenda

• Mutual / Cooperative market

• The P&V journey • Our strategy: how we

strike a balance between social and financial goals

• Conclusions

More than 100 years P&V

1907Prévoyance Sociale (PS) created by

various organizations

from the labor movement

1910Investigation by an independent

actuary with pricing

adjustments

1913New Head OfficeSq. de l’Aviation

in Brussels

1922Co-founder of

ICMIFfor exchange of

ideas

As from 1930

Socialization of profits

More than 100 years P&V

1950Professiona-

lization (professional network with own training

center)

1953Three provincial

offices in Belgium, state of-the-art data

processing center

1957New Head Office with avant-garde

profile (first tower building in Brussels)

1989Creation of

Euresa : european

structure for cooperation and

exchange of expertise

1993PS P&V

New name in line with

linguistic reality in the country

More than 100 years P&V

2000Creation of Actel (direct writing)

2001Creation of

IMA Benelux

2003Acquisition of

Piette & Partners

2004Acquisition of a

large part of Zurich Belgium

Creation of VIVIUM

2007Acquisition of ING Insurance

Belgium

Agenda

• Mutual / Cooperative market

• The P&V journey• Our strategy: how we

strike a balance between social and financial goals

• Conclusions

• Regulatory pressure (Solvency II,…)– Exponential cost of doing business– Absolute necessity to ensure access to long-term funding– State-of-the-art risk management systems a must

• Competition into “x-washing”: green-washing, solidarity-washing, ..– Necessity for us to be true to our values and to demonstrate them consistently: products,

services, interactions with third-parties• Tight talent market

– Offer a distinctive package on the labor market: attract people on values, development opportunities, not just money

• ….while being on part with all other players on the industry fundamentals…

Challenges and pitfalls

Expertise

Solidarity

Performance

Responsa-bility

Respect forthe individual

Customer orientation

Integrity, honesty and

respect commitments

Values

Dual mission: social and

sustainable • FOCUS: be in the top three of the insurance sector in Belgium in

selected segments

• SUSTAINABLE: be a company with a solid financial structure, based on state-of-the-art risk management processes

• COOPERATIVE “OUTSIDE”: • Quality of services, products and advices• Loyal and reliable partner close to its intermediaries and its

customers

• COOPERATIVE “INSIDE” :• Every employee is encouraged and supported in their

personal development • teamwork and collaboration between departments contribute

to the objectives of the Group

Top 3

Qualityof

service

-

-

-

Loyal partner

-

-

Personal development

Solid financial structure

The cooperative model in insurance is promising• In the aftermath of the financial crisis, more citizens are looking for meaningful

relationships with providers they can trust • Solidarity and autonomy are core constituent of any typical insurance offering• Value-based organizations are consistently over-performing other ones over time

Conclusions