Preparing for the era of the mega-fund May 2012 D Glenn Sedgwick.
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Transcript of Preparing for the era of the mega-fund May 2012 D Glenn Sedgwick.
2Copyright © 2012 Accenture All rights reserved.
Accenture's latest report…
3Copyright © 2012 Accenture All rights reserved.
Today's Agenda
• Forces of Structural Change
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Today's Agenda
• Forces of Structural Change
• Business Model Innovation
5Copyright © 2012 Accenture All rights reserved.
Today's Agenda
• Forces of Structural Change
• Business Model Innovation
• Getting Started
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Forces of Structural Change
• Growth and Consolidation
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Our Industry will be a very different place…
Source: APRA Annual Superannuation Bulletin June 2011
8Copyright © 2012 Accenture All rights reserved.
Our Industry will be a very different place…
Source: APRA Annual Superannuation Bulletin June 2011
2017
over $2 Trillion
9Copyright © 2012 Accenture All rights reserved.
Our Industry will be a very different place…
Source: APRA Annual Superannuation Bulletin June 2011 Source: Rice Warner Media Release December 2011
2017
over $2 Trillion
Source: APRA Annual Superannuation Bulletin June 2011
10Copyright © 2012 Accenture All rights reserved.
Our Industry will be a very different place…
≈74 FundsBiggest @ ≈$350
BillionAverage fund ≈$80-
$90 Billion
2017
over $2 Trillion
Source: Rice Warner Media Release December 2011
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Forces of Structural Change
• Growth and Consolidation
• Government Reform
12Copyright © 2012 Accenture All rights reserved.
Forces of Structural Change
• Growth and Consolidation
• Government Reform
• Aging and Competition
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• Growth and Consolidation
• Government Reform
• Aging and Competition
• Consumers are Changing
Forces of Structural Change
The industry today
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Source: Rice Warner Media Release December 2011
2011FUA $ Billion
SMSF
Retail Super
Industry Funds
Public SectorCorporateSmall
A new industry structure
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Source: Rice Warner Media Release December 2011
2011FUA $ Billion 2016
“A 3 cornered contest”
HIGH RETURN?
FULL SERVICE?
HIGH COST?
HIGH RETURN?
FULL SERVICE?
HIGH COST?
LOW COST?
HIGH RETURN?
LOW SERVICE?
Retail
SMSF
Industry ?
SMSF
Retail Super
Industry Funds
Public SectorCorporateSmall
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Shift to Online
Copyright © 2012 Accenture All rights reserved.
Please indicate the percentage of your business generated by each of the following channels. Changes
between2007 - 201329% drop
12.5% drop
6% drop
250% gain
400% gain
4%11%
14%
15%15%
14%
8%3%
2%
32%29%
28%
44%37%
31%Non tied advisory channels
Tied or captive agents
Bancassurance
Phone (branch, call centres)
Internet (PC and mobile devices)
2010* 2013*2007**
Source: Accenture Global Multichannel Distribution Survey, 2010. Accenture Global Insurance Global Survey, 2007
1. Retailers, travel firms, etc.
17
Potential Solutions
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New operating models
Cometa is using Accenture’s business process outsourcing services
Case Study:
Potential Solutions
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New operating models
Cometa is using Accenture’s business process outsourcing services
Benefits•Cut acquisition time for new enrolments by 20%•Reduced hard-copy inputs from employers by 75%•Reduced the time it takes to invest in Super by 80%•Cut pension payment times by 30%
Case Study:
Potential Solutions
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Case Study:
• Face to face transactions costing US$15 each
Potential Solutions
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Case Study:
• Face to face transactions costing US$15 each
Benefits• By 2009 – 39 millions out of 41 million (95%) of
member transactions completed through an online channel – costing 10 cents each.
Potential Solutions
22Copyright © 2012 Accenture All rights reserved.
Case Study: WIP
Members: ≈ 900K
FUM: ≈ 35 Billion
Workplaces: ≈ 60K
Potential Solutions
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Approach:
1.Move from “registry processing” to “member-centric”
2.Replace former legacy apps (Pensions/Insurance)
3.Embrace online and mobile
Case Study: WIP
Members: ≈ 900K
FUM: ≈ 35 Billion
Workplaces: ≈ 60K
So What? … 3 things
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• Get a Plan
So What? … 3 things
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• Get a Plan
• Get Ready
So What? … 3 things
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• Get a Plan
• Get Ready
• Get Going
Soon to be released Accenture global pensions survey
• 8,100 consumer interviews in 15 countries
• 15 country reports: market trends and opportunities for insurers
• Pensions landscape: pension landscape overview, insurers imperatives and key pension market trends
• The pension potential index: assessment of 21 countries according to a combination of variables in order to identify the level of opportunities and challenges for insurers
• Survey report - global results as well as key results by country and consumer profile (e.g. age, gender)
Copyright © 2012 Accenture All rights reserved. 27