World Insurance Report 2009 reveals vital multi-distribution channels for capturing growth in a
challenging market: Transformation strategies can help insurers
Proprietary Multi-Distribution Maturity Assessment Model scores industry progress
The 2009 report reveals that a mature multi-distribution model develops through five distinct
stages. Using a proprietary Multi-Distribution Maturity Assessment Model, the report calculates
an overall maturity score, and a score for each stage, for a significant industry sample.
It finds many insurers have already developed significant capabilities in the first three stages of
multi-distribution: 1) developing multi-network, and 2) multiple-channel capabilities, and 3)
mutualizing functions (i.e., centralizing and sharing distribution-related operational functions
such as IT across networks).
Only a few insurers have advanced to the next stages of 4) centralizing intelligence, or 5) crossnetwork
cooperation (i.e., attained a “mature” multi-distribution model). Notably, though, most
mature multi-distributors overall have acquired a broad set of capabilities, suggesting insurers
need at least a minimal level of maturity in all stages to excel. To conclude, although many
insurers have developed significant capabilities in the initial states of multi-distribution, only a small
number have developed more advanced models, leaving significant potential to capture further
opportunities.
Moving to a multi-distribution model is a process of transformation for the insurer
The report identifies a series of immediate action steps that form the components of this
transformation. Those steps require the insurer to start with the customer; follow with the network;
rethink organizational design and leadership; embrace technology; test and learn with cooperation
pilots; monitor the value of the overall business; and manage the power of information.
David Giblas, Partner, Financial Services, Capgemini Consulting France says: “Admittedly, an
effective multi-distribution model is challenging to implement, especially because its various
facets, like cross-network cooperation, can be tough to initiate. But once the operating principles
of multi-distribution are established and functioning, a virtuous circle is likely to ensue. This
kind of growth opportunity is especially urgent in today’s tough operating environment, when
insurers need to focus more and more on generating revenue and growth from the core business
of product development, underwriting and distribution.”
NOTE: Now in its third year, the World Insurance Report 2009 from Capgemini and Efma focuses on
the theme of multi-distribution. Building on the findings from the 2008 report that insurers can
increase market access and share of wallet through multi-distribution, this year’s report will
investigate the capabilities being developed and strategies that leading insurers are adopting to
achieve success in multi-distribution. Based on research covering 59 interviews with senior
executives from leading global insures and over 2,250 distributors surveys, the World Insurance
Report 2009 draws data covering 17 countries: Austria, Australia, Belgium, Denmark, France,
Germany, India, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Spain, Switzerland,
the United Kingdom, and the United States. The report assesses insurance companies’ multidistribution
maturity, investigates key multi-distribution challenges, highlights leading practice,
and proposes approaches to overcome these challenges. The World Insurance Report 2009 will
bring further insight and thought leadership to one of the most important strategic issues facing
insurance sector today.
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