1、Hong Kong, May 2020 Insurance landscape evolution and emergence of MGA/MGU model Focus on Health insurance and Asia markets 220200525_MGA model evolution Asia_vf.pptx We will explore the dynamics of the health insurance market and deep dive into the MGA/MGU1)landscape in Greater China and SEA Table

2、of contents Key questions addressed Outline How has the insurance landscape evolved and what are the new players that emerged? 1 What strategies will incumbent and new insurance players pursue in future? 2 What is the MGA landscape in Asia and how will that change? 3 What are the implications?4 Sour

3、ce: Roland Berger RB perspectives and key questions D Insurance and MGA macro trends A MGA landscape in Asia C Value proposition of the various players in the value chainB 1) MGA: Managing General Agent / MGU: Managing General Underwriter A. Insurance and MGA/MGUmacro trends 420200525_MGA model evol

4、ution Asia_vf.pptx 2)2) 3)3) Insurance landscape is evolving All stakeholders are expanding across the value chain to transform their value proposition Core activity of playerSecondary activity, could be delivered in partnershipEntry into new segment by player (Access to) Treatment Claims management

5、 Policy admin e.g. use of telematics in fleet management and IoT in property insurance implementation of pay-as-you- use tariffs; satellites for home insurance Cyber risk coverage and prevention in the wake of increased use of data and home working Specific protection products such as death, loss of

6、 job etc. might offer an opportunity to boost penetration Wellness and wellbeing services to improve health conditions to employees in all dimensions (physical, mental, financial, community): Health prevention on site with check-ups and primary care Support to employees to manage their elderly when

7、dependent Reduction of absenteeism Services allowing facilitation of home working Scale-Up in a consolidating economy Pillar 4 Partnership with service providers close to insurance in order to increase customer base and develop customer loyalty Motor: with mobility players Home: with security servic

8、es or telecom providers Health: with healthcare providers Alliance with competitors (nationally or internationally) to increase buying power in Insurance Procurement, for car repair or home repair in particular To create barriers to entry, higher investment in services which can be bundled with insu

9、rance products or be sold stand-alone (e.g. tele- consultation services) Continued cooperation with InsurTechs to accelerate solution development, including cooperation for advanced data collection 1520200525_MGA model evolution Asia_vf.pptx MGA will change dramatically Players are originating from

10、and expanding to all across the value chain Where the firm startedSubsequent expansions to become MGA (Access to) Treatment Claims management Policy admin 3) Selected Case study as follows MGAs in SEA are mainly from other regions as local start ups are relatively few There are also notable healthca

11、re providers turned MGAs in SEA (Fullerton and Raffles Medical) MGA landscape in SEA 2420200525_MGA model evolution Asia_vf.pptx Datebao is the first in China to implement MGA model by connecting scenarios and insurance product to cover the protection demands Case study on Datebao Source: Desktop re

12、search, Roland Berger Overview China Founded in 2014 First to implement MGA model in China Internet health insurance platform, providing operational service to insurers by its InsurTech and provide health management service to customers by leveraging health insurance. 8M customers Key takeaway Devel

13、op creative product and cover the whole value chain Parnters with 10 re-/ insurers Connect and partnership with health management platforms and hospitals Its first medical insurance Family Big Box, provide healthcare protection to whole family (3 members at least) Datebao almost covers the whole val

14、ue chain, from product design, pricing ,re-insurance aggrangement, risk control and online promotion It has its own distribution to ensure zero-commission, so that premium is cheap enough to attract cusomters. Partnerships with leading insurers and health agencies to build an eco-system Health Hospi

15、tal 90% of claims approved will be paid in 2 working days. Its end-to-end digital platform is easily customizable and is designed to seamlessly integrate into any insurance companys existing system Obtains virtual insurance license to become the first TechInsurer Technology Capability to make it eas

16、y for both customers and insurers Partnerships with leading insurers and reinsurers Source: Desktop research, Roland Berger 2820200525_MGA model evolution Asia_vf.pptx Nanyan is another leading MGA player in China, it focuses more on systematic solutions and now it extends business model into TPA Ch

17、ina Founded in 2015 Acquired an insurance broker in 2018, and TPA Medilink-global in 2019 Received investment from Bluerun Venture, SIG, Starr and Boci Group from 2015 to 2020. First to implement SaaS+MGA model in China Provide comprehensive third-party insurance e- commerce services. Source: Deskto

18、p research, Roland Berger Overview Key takeawayKey takeaway Expanding value chain coverage to scale up Partnerships with leading insurers and health agencies to build an eco-system In its early stage, Nanyan focus more on broker enablement and systematic solutions, which is a relatively easy cut-in

19、for new entrants When Nanyan got more and more fundings, it started to make strategic moves by acquisition, obtaining broker and TPA who have already had strong precense in China With its SaaS, geogracphical coverage of broker, TPA capability, Nanyan have the full capability of MGA and relatively la

20、rge scale comparing to other players in China market. Partners with 55 re-/ insurers Connects and partners with different distributors Case study on Nanyan 2920200525_MGA model evolution Asia_vf.pptx It entered the market by providing tech solution to brokers, and expand business by acquisition afte

21、r getting more and more funding 200182019 Funding $1.76 million in Series A by Bluerun $10s of millions in Series B2 by Bocigroup $15 million in Series B1, by STARR, SIG, and Bluerun $10s of millions in Series B by SIG, Bluerun Business Highlight Monthly premium revenue reached CNY 1m in

22、Mar Monthly premium revenue reached CNY 10m in Jan Partnership Partnershiped with life insurance broker, health insurer, life insurer Partnershiped with P Headquarter in Beijing and branches in Shanghai, Guangdong, Shenzhen, Jiangsu. Its broker business includes traditional insurance ( life, P&C, he

23、alth insurance), internet insurance, and reinsurance Partnership with leading insurers: TPA and medical network for mid and high-end medical insurance Previously owned by MediLink Global before selling 51% of shares to Selfdoctor Technology Co., Ltd in 2014 (price: USD 300k) Large client base, handl

24、ing TPAfor 30+ life and health insurers including: Regional presence in China countrywide Access to its broad clients portfolio and product coverage Regional presence in China and South-East Asia Access to MediLinks broad clients portfolio Potential benefitsPotential benefits Case study on Nanyan 31

25、20200525_MGA model evolution Asia_vf.pptx MSH China is now the largest high-end health insurance provider, leveraging on its scale, network and TPAcapabilities. Entered China in 2001 Headquarter in Shanghai, branch offices in Beijing, Guangzhou, Shenzhen, Chengdu, Singapore, and service offices in S

26、uzhou, Wuhan, Dalian, Hefei, Harbin and Wenzhou Largest market share of high-end health insurance in China Case study on MSH China Overview MSHs first move when entering China market 20 years ago, was to build up its healthcare network, connecting to both public and private hospitals and clinics The

27、 healthcare network makes its unique advantage when dealing with both insurers and customers Most in-depth local healthcare network Its full range TPA services include Sales and Marketing Support, Enrollment, Claim, Customer Service, Claim Control and Risk Management, IT System Support, all of which

28、 benefit from economies of scale and help lower insurers combine ratio. Key success factors MSH takes partnership with local insurers as its second step in China. With its partnership with global insurers, MSH makes itself a best choise for foreigners in China. Partnerships with leading insurers Sou

29、rce: MSH China website, desktop research, Roland Berger some of its local partners:some of its global partners: high- quality TPA service 3220200525_MGA model evolution Asia_vf.pptx MSH China cut in the market by building up healthcare network and strengthened its unique competitive advantage in loc

30、al market 2001 2004 Established Building local healthcare networkExpanding AffiliationPartnership with local insurers 2005 20162017 Is expanding its eco-system and value chain TodayTodayToday Source: MSH China website, desktop research, Roland Berger Healthcare network includes 1040 hospitals intern

31、ational clinics, in 80+ cities. Partnership with about 5 global insurers and 20+ local insurers. 2001 1st international health insurance service center 20021st direct billing network with top- ranking local hospitals 20041st local medical case management practice 2005 1st International Health Insura

32、nce policy approved by the CBIRC 20061st Long Term Disability policy approved by CBIRC 20111st international health insurance service provider with ISO 9001 Certification in China 20131st international health insurance service provider with ISO27001Certification in China 2016Partnership with Boc Ins

33、urance and Yongan Insurance on various overseas insurance plans. 2017Launch new operation system 2.0 - iHealth 2019 Strategic partnership with 111 group (a leading integrated online and offline healthcare platform in China) on health insurance and PBM Case study on MSH China 3320200525_MGA model evo

34、lution Asia_vf.pptx April operates all over Asia, its strong partnership with distributors and medical service provider forms its competitive advantage Overview Its business model covers from product design, distribution and manage & assistance 24/7, so that it could get almost every data along insu

35、rance value chain, customers could have one-stop experience with April and insurers could leverage on April totally Comprehensive coverage of insurance value chain April make life easier for their internationally-mobile aware customers by insuring their health and travel wherever they are in the wor

36、ld and whatever the nature and duration of their trip Key success factors Operating in Asia for 25+ years, April has developed a strong network with insurers, network providers and medical service providers and managed to develop products adapted to their customers needs, wherever they are in the As

37、ia Pacific region With its integrated and regional footprint, April owns the advangtage of ecnomics of scale, which helps to lower insurers CoR in-depth network locally and globally High- quality service capability April reinforced its presence in Asia in 2012 through acquisition Operations in China

38、, Hong Kong, Singapore, Thailand, Vietnam, Indonesia Provides international personal medical insurance for individuals, families, SMEs and groups in Hong Kong, Philippines, Singapore, Thailand, Vietnam Source: desk research, interviews, Roland Berger Case study on April International Care Asia 34202

39、00525_MGA model evolution Asia_vf.pptx For MGAs in Asia should note that a sizable competitor with large ambitions is expanding in the region as well Source: Nexus Underwriters, Press News, Roland Berger Presence in Europe, USA, China (inc. Hong Kong Singapore, Malaysia Founded in 2008 Offers insura

40、nce on accident & health, surety, travel, latent defect, marine and aviation, financial lines and trade credit USD 400m gross written premium Aims to be the largest specialty MGA in Asia, achieving USD 50m in GWP Overview Nexus partners with more than 30 specialist underwriters to support product of

41、ferings Partnerships with underwriters Buy and build over organic growth maintaining profit margins Nexus has preferred acquisitions fuel growth, from 2014 to 2019, Nexuss EBITDA grew from USD 3m to USD 18m in 2019 Nexus completed 19 acquisitons Nexuss EBITDA to gross written premium margins maintai

42、ned at 4-5% consistently Funds mainly came from investment firms such as B.P. Marsh & Partners, an investor in early stage financial services businesses (19% shareholding stake in Nexus) As Nexus turn its growth ambitions to Asia, we expect Nexus to continue acquisition and drive growth aggressively

43、 Nexus acquired a Malaysia-Based Structured Solutions Specialist (Huntington Underwriting) in 2018 Key success factors Case study on Nexus Brokers are a key distribution channel for Nexus e.g. started Xenia Broking Group and acquired Credit & Business Finance (a specialist insurance broker) in 2019

44、Distribution via brokers 3520200525_MGA model evolution Asia_vf.pptx A smaller startup has also seen success in the MGA market with both internal and external factors contributing to its growth Source: Luma Health, The Nation, Roland Berger Thailand imposed a mandatory health insurance requirement1)

45、for expats with long stay visas1)with As a result, Luma has focused on expats by offering attractive insurance packages Expats can also choose to receive treatment in certain countries in Europe Offices are staffed with multi-lingual speakers e.g. German and French to support expats Focus on expats

46、Value-for- money offering(s) via digital channels In-house doctors who provide free consultation and recommend best medical facilities Consumers view Lumas plans to be value-for- money due to cheaper premiums and lifetime renewal guarantee unlike other insurance companies with age renewal limits Lev

47、eraging of mobile app and social media to engage consumers and provide lifestyle advice e.g. exercising There is an increasing expat population in Thailand, especially among the Chinese, which doubled in size from 2011 to 2016, with the average expats income increasing by 28k USD in 2018 The increas

48、ing attractiveness of Thailand for expats would lead to more demand for expat health insurance and boost Lumas performance Key success factors Case study on Luma Health Offices in Thailand, Vietnam, Myanmar and Cambodia Founded in 2012 Focuses on health insurance for individuals, corporates and for

49、travelling Focuses on Thailand, where it insurers 5,000 families and companies 1) Coverage requires a minimum of THB 40,000 for out-patient and THB 400,000 for in-patient medical bill coverage D. RB perspectives and key questions 3720200525_MGA model evolution Asia_vf.pptx MGA model is now getting traction in Asia while key developments drivers still remains in the making Source: Roland Berger What are the key insurance segments and products where MG