Question n°9
Olivier Pastré
Professor of Economics at the Paris VIII University,
member of the Cercle des économistes
Paris, France
Is the economic slowdown in Brazil having an impact on your strategy?
Answer
After years of growth described as a “miracle”, the slowdown of the Brazilian economy is having a big impact. In 2015, the recession amounted to –3.8% and the fall in the real has affected the accounts, but CNP Assurances has confirmed its very attractive growth dynamic.
Looking ahead, the Group still has reason to believe in this country’s future. With a population of
203 million and 25 urban areas with more than one million inhabitants, Brazil has the world’s 7th largest GDP.
Every year, new Brazilians join the ranks of the middle class and shop for consumer goods. Through its established partnership with Caixa Econômica Federal, the 2nd largest state bank in the country, CNP Assurances is launching a 100% digital insurance company that will change the face of insurance.
+32% growth at constant scope and exchange rates in 2015
100% online
Youse company, a first of its kind in insurance in Brazil
Gabriela Ortiz de Rozas
Director of marketing, strategy and communication, Caixa Seguradora
At Caixa Seguradora, we think that the largest Brazilian insurance company of the next fifteen years has not been created yet. Today, 50 million Brazilians buy products on the Internet. Insurance policies are of course sold online, but the processes which follow are traditional. Caixa Seguradora is the first to offer a 100% digital insurance experience. We recruited young people from start-up companies to get out of our usual thought processes and habits, and came up with “Youse”. The world is changing, it’s up to us to play our part!
Solid foundations
We have been in partnership with Caixa for fifteen years, fifteen years of trust between the staff of the two groups, and fifteen years of proven track record. The Brazilian dynamic is confirmed against all the odds. In 2014, revenue increased by 16.7% in a tense social climate crystallised by the football World Cup. In 2015, it leapt by 32% (at constant scope and exchange rates) and now amounts to €3.2 billion.
Personal protection (+17%) continues to be attractive to Brazilians, who dream first of protecting their health and then of buying their own home.
The commercial investments made to relaunch the savings business resulted in pensions outperforming (+46%). At the end of 2015, the mix of the subsidiary was 80% in personal risk and protection and 20% in savings, 97% of which being unit-linked. The Caixa brand, with its very high profile, is one that definitely has the confidence of Brazilians. Based on their acquired knowledge, the complementary nature of their know-how and their shared strategic vision, the two partners have embarked on the digital journey.
15 years of fruitful partnership, which will continue until 2021
18 months to create “YOUSE”, a 100% digital company, from scratch
The digital leap
Brazil is the ideal territory. The target of candidates for micro-insurance is huge, and practices are being digitised there much faster than in Europe. 74% of Brazilians say that they are prepared to subscribe for insurance remotely, while online insurance only represents 0.4% of the market. In its quest to diversify its distribution methods, the CNP Assurances Group has decided to create a 100% digital insurance company.
In Brazil, all the large insurance players are betting on mass distribution and are opening virtual shops on their websites. Caixa Seguradora is looking for a breakthrough innovation. How can you sell insurance on Twitter or WhatsApp, while offering the customer the best possible experience? This is the challenge that the subsidiary has set itself. And it is taking it on in start-up mode. The idea is to create a pure player company, born in the world of e-commerce, in line with the codes, the practices and the requirements of e-buyers. In order to do that, the model Caixa Seguradora has used is that one that made GAFA(1) such a success: the customer process.
From the tightly-knit and autonomous cross-functional team, to the market surveys to get to know this new target, to the agile “design thinking” development methods used to innovate fast, to test all at once and to constantly improve, Caixa Seguradora has introduced a 100% new way of doing insurance, and the results do not disappoint. The company Youse will allow people to subscribe for insurance simply, intuitively and 100% online. Customers will be able to design adaptable policies in a few clicks, to cover their lives and assets. Youse will be launched in summer 2016 with a basic offer of personal risk and protection products for housing and for life. This is an experience that CNP Assurances Group intends to export to Latin America, and even to Europe.
(1) Google, Apple, Facebook, Amazon.