E-Distribution and Tradingin the Simple Commercial Space

Nick GiddingsChief Executive Officer

PowerPlace

Simon HughesSales & Marketing DirectorOpen GI

Definition of Term (i.e. what is E-Trade ?)• A method of trading whereby technology is used to connect buyers

and sellers

Noting• The extent to which technology is utilised in this is variable• The more complex the “product”, the less end-to-end automation

E-Trade might include any of the following:• Systemic data capture• Auto-rating of a product• Data connectivity in the supply chain• B2B / B2C ecommerce

All of the above “bring together buyers and sellers”

• Personal lines insurance is almost fully e-traded, end-to-end• Web is the predominant channel• Price comparison web sites dominate private car

– Initiate close on 60% of all new business sales– 2013 estimated to generate c. £7bn of new business sales

Current Trends: The Move to Mobile

Current Trends: Manifestation of Mobile in Personal Lines

• Confused.com statistics:– Since Jan-12, 20% decline in desktop visitors– Since Jan-12, 10% increase in mobile & tablet visitors– Q1 2012 – Q2 2013, mobile visitors grown from 6% to 15%

Source: Datamonitor, UK SME Insurance 2012 Report, published November 2012

Segmentation of the SME Market

Source: Datamonitor “Targeting SMEs in UK General Insurance”(2007)Source: Datamonitor “Targeting SMEs in UK General Insurance” (2004) Source: Datamonitor “UK SME Insurance” (2011)

Are Brokers Losing Market Share of SME ?

SME Buying Behaviour

Source: Datamonitor, SME Insurance Survey 2012

• For Brokers– Access to a market of auto-rated SME products– Comparative rating / covers– Fully integrated (Open GI only)– Out-of-the-box ecommerce strategy– Mobile-ready

• For Providers– Instant distribution to an agency base of 1,200– Agency Management and cash collection– Real-time rating and document control– E-enablement of products– Multi-channel distribution

PowerPlace Live Policy Count by Channel

In Office Broking• Growth as Brokers look for

efficiencies

Internet• 100% growth in 2years• vSME biased

Channel Segmentation