How does the insurance business adjust to the platformization? And what is at stake?

Find out what Wendy Wattebled, BNP Paribas Cardif start-up investment manager and Gil Cohen Managing Director EMEA at Open Legacy think about it

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The 11th edition of the BNP Paribas Cardif Symposium took place in Amsterdam, Netherlands, on 5 and 6 December 2019. This event brought together BNP Paribas Cardif’s main international distribution partners around the theme of: Tackling hyper-digitalised environments...

 

More than 200 participants, from 28 countries, attended keynote talks delivered by renowned speakers. It was an opportunity to share the risks and opportunities - for the planet, the business, the city and even individuals - posed by digitalisation pushed to its limits, and also to take a lead faced with the challenges of hyper-digitalisation for the insurance industry.  “Digitalisation is contributing significantly to polluting our planet, but also our minds” said Renaud Dumora, CEO of BNP Paribas Cardif, in the introduction. “The key is to find the right balance between digitalisation, which is a source of opportunities and new services, and human interactions which remain crucial.”

 

1.      Hyper-digitalisation and business

Catherine Wood, founder and CEO of ARK Investment Management LLC (USA), emphasised the five major sources of innovation: blockchain, robotics, energy storage, artificial intelligence and genome sequencing. She said that “with hyper-digitalisation we are now observing transformations similar to those experienced with the discovery of electricity or the telephone.”.

“We’re not worried about job losses”, she noted. “Technology has a history of creating jobs.” Her conclusion is clear: “Any leader that does not take hold of Data and Artificial Intelligence to manage their business will responsible for its failure. If businesses do not adapt, they will lose their market. Be ready!”

 

 

2.      Hyper-digitalisation and the economy

For Christopher Pissarides, a Professor at the London School of Economics and recipient of the Nobel Memorial Prize in Economic Sciences in 2010, “hyper-digitalisation will disrupt our way of living and working”. The challenge? Making this revolution as inclusive as possible to improve the quality of life of all and to benefit as many people as possible. In the same way that some jobs benefit from new technologies, while others become obsolete, certain skills are becoming more valuable while others can be replaced. Thus two movements are developing in parallel. On the one hand, we have the agglomeration of activities, like in Silicon Valley, where tasks must be carried out by qualified employees. Businesses prefer positioning themselves where they have varied resources and skills at their disposal in order to perform better. On the other hand, we have e-commerce which allows platforms to sell from anywhere in the world. 

 

3.      Hyper-digitalisation and urbanisation 

Arjan Van Timmeren, Professor of Environmental Technology & Design at Delft University of Technology in the Netherlands, highlighted the acceleration of change in highly varied domains: energy, water, behaviour, sustainable development, etc. Digitalisation provides solutions - often more sustainable and efficient - to ensure that these changes succeed, even the most rapid ones. His advice? “To adopt new technologies with caution, taking into account people’s privacy, in particular.”

 

4.      Hyper-digitalisation and individuals

Ayesha Khanna, co-founder and CEO of ADDO AI (Singapore), used examples to demonstrate how hyper-digitalisation is already changing our lives, notably in cities like Singapore. “The question is not about knowing if new technologies work or not, but what their consequences are and how to use them well. To make good decisions, you need to remain human-centric. We should all be aware of the basics of artificial intelligence in order to grasp the issues at stake. The main threat is not the technology itself, but how to use it. It is all therefore a question of governance.”

 

All the speakers agree that we are now at a crossroads. Our collective decisions and actions point us to a future that we have the ability to shape. This hyper-digitalisation implies new challenges but also great opportunities for society, businesses and people. Indeed, it lets us respond more quickly and more accurately to the expectations of citizens, employees and consumers, provided that the inherent risks are handled carefully and that the dignity of people and the future of the planet are maintained under all circumstances.

 

The Internet of Things is giving insurers an opportunity to become the go-to partners when it comes to dealing with everyday risks. Paying out on insurance claims will become the exception rather than the rule. The new norm will be about providing prevention and protection solutions.

According to audit, tax and consulting firm PwC, close to seven connected objects per person will be in use worldwide in 2020. Market insights provider IoT Analytics estimates the number (NB: excluding smartphones, computers and tablets) at seven billion this year, ten billion by 2020 and twenty-two billion by 2025. In parallel with this surge in interconnectivity, a second trend is taking hold – cybercrime, which is now costing $600 billion per year worldwide (McAfee Labs), i.e. some 0.8% of global GDP.

 

Prevention is better than cureRanging from watches to tensiometers, pacemakers, scales, fridges, smoke detectors, locks, drones and cars, objects connected via the Internet which communicate with each other in real time in order to trigger action (Cigref’s definition), now promise to provide smarter, more personalised risk assessment. Here insurers see an opportunity to take a different approach to the way they assess, price, forecast and limit their policyholders’ risks. Meanwhile the insured have the prospect of obtaining tailor-made solutions on demand, at attractive rates.

Starting with the home, connected sensors enable smoke to be detected, and will ensure that an alarm goes off if a break-in occurs or a water-pipe bursts. US insurance company StateFarm offers its policyholders reductions on a range of Canary connected security equipment and residential security systems from US security services company ADT. Then when it comes to cars, the development of telematics solutions has enabled real-time assessment of driving behaviour so as to help avoid risks on the road. Thirdly, in the health field, hi-tech watches and other types of activity sensors now enable people to track their physical exertions, their heartbeat and the quality of their food intake. However, according to the latest report from audit specialists Deloitte, concern over the security and protection of personal data remains a considerable obstacle to the widespread adoption of these new insurance products, quite apart from any considerations of abuse and potential misuses of, for example, predictive health.

 

Cybersecurity as a business 

Meanwhile the trend towards connected objects is bringing with it an increase in the overall scope for and risk of cyber-attacks. Not only is this threat potentially very serious but such attacks often occur in total silence. Consequently, there is a market here in which insurers, as trusted third parties, should definitely be positioning themselves.

Deloitte experts calculate that, following the advent of self-driving cars within the next couple of years, the frequency of road accidents will plummet by around 80% by 2040, but what will happen if cyber-criminals manage to seize control of this type of vehicle? Although to date there have been no reports of cyber-piracy against autonomous vehicles, US researchers demonstrated in 2015 what might happen and a year later someone hacked into a Tesla. Meanwhile ‘white hat’ hackers have also shown the feasibility of remotely hacking a pacemaker.

Yoni Abittan, a strategic analyst at L’Atelier BNP Paribas who is an expert in applied research into cybersecurity, foresees that the insurer of tomorrow could well become a cyber tech company. He underlines “Connected objects are not ‘secure by design’ , i.e. designed from the very outset with security as a major consideration. Going forward, insurers will no longer be able to simply provide insurance services; they’ll need to position themselves upstream of the value chain, co-designing solutions in conjunction with the makers of connected objects so as to develop the layers of security needed to ensure a secure IoT before these objects start being produced on a massive scale.”

US insurer Allstate has already grasped this new challenge, and has acquired a startup called InfoArmor that specialises in employee identity protection. The figures indicate just how much is at stake here. In 2017, 600 million out of a total of 2.7 billion data sets that were compromised were instances of identity theft (Gemalto, 2016), incurring costs estimated at $16 billion in the United States alone (Javelin Strategy & Research, 2017). Moreover, studies show that the more trust customers place in a given company’s data security, the more likely they are to share their personal data with that organisation.

Yoni Abittan reckons that “the challenge of ensuring connected object cybersecurity is first and foremost an Open Innovation challenge for insurers because this is not their core business. They’ll need to work with the various players in the IoT ecosystem –makers of connected objects, suppliers of cloud computing services, software publishers and suppliers of technical platforms, telecoms operators and so on.” Yoni Abittan feels that tomorrow’s insurers will also have a duty to raise awareness of the underlying cyber-risks, by using, for example, the nudge technique. He argues: “An insurer could send alerts via the IoT giving information about the incidence of cyberattacks and directing customers to a data safe where they could keep their data secure.” Yoni Abittan points out that “some banks, such as HSBC, have already trialled behavioural motivation in order to prevent customers from going into the red. Using this method, the UK Treasury department succeeded in recovering the equivalent of an additional €289 million for the fiscal year 2012-2013.”

Meanwhile regulation regarding IoT security – notwithstanding the recent advances made in California – is still in its infancy. We can only hope that progress will be made in this field in accordance with what is at stake, i.e. the lives of 7.5 billion people.

 

 

Social media, connected devices, online purchases, visits to websites, email address, we all leave our trace on the Internet. What is the best way to protect our digital identity ?

 

 

 

2019 HandiTech Awards will be presented on 18 November to kick off European Disability Employment Week. The awards recognize entrepreneurs who develop technologies to improve the lives of people with disabilities. BNP Paribas Cardif, a global specialist in personal insurance committed to making insurance accessible to the largest possible number of people, will present the award for the best initiative in the healthcare category. BNP Paribas Cardif is sponsoring the HandiTech Awards for the second consecutive year, underscoring the insurer’s longstanding support for innovation that drives a more inclusive world. 

 

Make insurance accessible to the largest possible number of people: a future-facing mission 

The values and strategy of BNP Paribas Cardif are inspired by the insurer’s commitments. BNP Paribas Cardif strives to facilitate access to its products to enable everyone to make their projects become reality. Ten percent of the world’s population is affected by disabilities, representing 650 million people[i]. BNP Paribas Cardif continually enhances its insurance cover and services, reduces the number of exclusions and simplifies the insurance subscription process in order to expand access to insurance for vulnerable members of society who have a disability or suffer from a disease. Thanks to this approach the insurer contributes to greater solidarity in society.

 

Innovation drives inclusion

Technological advances in areas such as artificial intelligence, robotics or digital technologies allow BNP Paribas Cardif to increase the granularity of insurance policies and create new offers that are continually better matched to the needs of its clients, including the most vulnerable among them.

In France, clients enjoy terms that facilitate access to creditor insurance. BNP Paribas Cardif introduced further innovations this year with its Cardif Libertés Emprunteur offer, which now proposes insurance cover and rates adapted to four additional pathologies: Parkinson’s disease, obesity, gestational diabetes and mental health issues related to a life event. Furthermore, in line with its diversity and inclusion policy, BNP Paribas Cardif supports the “Tangata.net” intrapreneurial project. This digital platform lists a broad selection of verified partners, providing access to a large number of leisure activities accessible to people with disabilities and adapted services to facilitate the daily lives of people with disabilities and their caregivers. Tangata.net also aims to accelerate the development of entrepreneurs and partner associations with the Act for Impact social entrepreneurship brand of BNP Paribas.

With a presence in 35 countries and a unique business model based on partnerships, BNP Paribas Cardif carries out numerous initiatives related to disabilities. In Taiwan, the insurer has set up a home visit service to make it easier for policyholders with disabilities to file claims. In Germany, a temporary disability assistance service helps clients in their day-to-day activities (advice, contacts for medical service providers, educational campaigns for drugs and treatments). And in Turkey, the Engelsiz Hayat Değer life insurance policy has been designed for families that have children with disabilities. It includes assistance services (reduced costs for medication, hospitalisation, physical therapy, etc.) in order to ease their lives.

 

All professions today are undergoing change, and insurance is no exception to the trend. The transformation is intense, fast and inexorable, and it calls on employees in the sector to take a breath… and to acquire new skills. To enable this to happen, BNP Paribas Cardif has already begun its own transformation process and it is now offering a number of key training modules to its teams. Renaud Dumora, Chief Executive Officer, explains how the company is preparing for the future of work.

 

How and why were training modules such as Programming, Data Science and UX Design chosen and tested by the BNP Paribas Cardif Executive Committee?

In my view, the most important movement underway in our industry is the one that is bringing us closer to digital technologies. It was very important for me that, given the development of digital-related professions, the Executive Committee know exactly what it is talking about. The UX designer, data scientist and developer will all take on more and more importance. It’s essential to understand these roles, to have discussions with people in these professions, in much the same way that we talk with actuaries or communications professionals.

And as we are launching on a large scale, it was essential to have a good knowledge of the central elements of the training programmes provided for our employees by General Assembly, one of the main training providers we work with.

 

What have you taken from these trainings? 

I attended and fully participated in these trainings. These areas fascinate me, and I followed their developments since the start of my career, which began in statistics. So I may have had more of an appetite for them than other people!

The first thing that surprised me was the format. The Executive Committee was given an accelerated module as a virtual class, because we were dispersed geographically. I was a little reluctant about MOOCs^* and distance learning tools, but it gives a group the opportunity of interacting online with a trainer while working over videos and slides. It’s easy to communicate through messaging and your concentrated is maintained. Being part of a virtual class with a real capacity for interaction is something that works. I finished the module with the desire to immerse myself in programming methods!

 

Will all professions be influenced in one way or another by know-how linked to programming, design and the use of data? 

Very clearly, yes. Wherever you are positioned in the value chain of insurance, you are going to be interacting with digital technology. It may be with end customers, or experts, or suppliers. More than that, digital technologies are going to directly disrupt many jobs internally. Take the Legal department, for instance. It’s a department that you’d imagine depends on the culture of books, on printed documents, on accumulated book knowledge… But that’s just a stereotype: in reality, zero paper already exists and there are already robots on the scene.

 

What criteria do managers apply to encourage their teams to take part in these training programmes?

Well, if employees ask their manager if they can take part in one of these trainings, it’s already great news! It means that we’ll have succeeded in creating a desire, of convincing that this necessary change is an opportunity. And let me stress that, because we are a methodical company, with a specific vision on this subject, training will not be offered blindly. It is to make the most of ourselves that we have introduced Strategic Workforce Planning, which is a strategic process that aims to identify the careers of tomorrow and support employees in upskilling. This provides us with a systemic vision that will find the best way of leading our 10,000 colleagues to other careers, to find the best way of pressing ahead with our transformation at a rate that will allow their aspirations to meet the company’s needs.

 

What are the benefits of these training programmes for managers?

Undeniably, the global preparation for the company’s transformation has to find its place at local level. At this level, of course, a manager’s obvious goal is to accomplish his immediate mission but he must also prepare his teams for the future. The training programmes we are putting in place will now enable him to fulfil this aspect of his role. We are going to help managers to move along this path. And we will do this in a sequenced, progressive manner.

 

What would you say is most at stake in these trainings? Having tools that facilitate customer relations? Improving employees’ employability? Business performance?

I think these training programmes address all these issues. Digital technologies help us improve our overall efficiency. Perfect service, customer experience and real time are less a challenge than something obvious. They’re not a luxury, but an absolute necessity. They’re already part of our environment, an intrinsic part of our business model.

 

Do you think that certain areas of our business are more likely to engage in these programmes than others? 

We tend to think that actuaries and information systems and IT professionals would have a more naturally immediate inclination to sign up for these training modules. But, if the enthusiasm of the Executive Committee members during the training sessions they were offered is anything to go by, everybody is onboard!

 

What will make it possible to say that the transformation will be a success?

Of course, we will rely on a range of metrics directly linked to training programmes offered by General Assembly, ranging from a week for upskilling^* to three months for reskilling^*. These indicators measure the educational added value of the trainings, i.e. a list of skills acquired, degrees of expertise, etc.

But what is most important for the company as a whole is to increase its capacity for development, its capacity to seize new opportunities to train existing teams.

 

*MOOC: Massive Open Online Course.

*Upskilling: development of skills.

*Reskilling: acquisition of new skills.

 

Discover our articles about the future of work :

BNP Paribas Cardif : a learning company that shapes the future of work

Preparing for the jobs of tomorrow with General Assembly

Agile and customer-focused, Product Managers are reinventing their profession

 

Sainsbury’s Bank and Cardif Pinnacle, BNP Paribas‘  insurance arm in the UK, announce today that they have joined forces to relaunch Sainsbury’s Bank’s Pet insurance. The new collaboration is building a comprehensive and digital pet insurance offering to support the needs of Sainsbury's Bank’s pet insurance customers in the UK.

Sainsbury’s Bank will introduce a core suite of products and services designed for Sainsbury’s customers. This offer will cater for the wide-ranging needs of cats and dogs. Supported by BNP Paribas Cardif’s analytics expertise, the shared vision is to create a range of products and services including a fully digitalised customer portal with online claims processing, agile and competitive pricing, 24/7 access to veterinary live chat, video chat, as well as behavioural and nutritional consultations offering dietary and lifestyle advice.

Sainsbury's Bank Pet Insurance customers who are Nectar members will have a guaranteed discount[1] and double Nectar points[2] when they swipe their Nectar card in Sainsbury’s stores, at Sainsbury’s petrol stations and online.

Under the terms of the  agreement, Sainsbury’s Bank and Cardif Pinnacle are committing to a long term mutual relationship.    

Andrew Wigg, CEO of Cardif Pinnacle said: "Today’s announcement reflects BNP Paribas’strategy to build its UK insurance platform, currently focused on Pet and Motor.  We are delighted to be partnering with Sainsbury’s Bank to provide a digitalised offering to support increasing and diverse customer needs."  

Karen Hogg, Head of Insurance, Sainsbury’s Bank said: “We’re very pleased to partner with Cardif Pinnacle. Our survey of Sainsbury’s shoppers[3] said that 75% would be interested in Sainsbury’s Bank Pet Insurance with lifetime cover added as a new product.  We’ll also offer a guaranteed discount to new Sainsbury’s Bank pet insurance customers who are Nectar members.”

 

BNP Paribas Cardif presents results of a survey of 26,000 people in 26 countries on 3 continents conducted with Ipsos

 

 

·         Concerns are primarily financial and social.

·         A predominant feeling of confidence looking ahead to 2025.

·         People play an active role in their future, with ambitious and multiple aspirations and concrete projects.

·         People also concerned about unforeseen life events, both financial and physical.

·         Insurance figures at the heart of expectations regarding protection and looking ahead to the future.

·         Creditor insurance and loans secure and facilitate projects.   

·         4 fundamental challenges for the insurer: maintain human contact, strengthen recognition of distribution partners as insurance providers, reconcile individual and collective benefits, support policyholders beyond compensation.

 

BNP Paribas Cardif has released the results of a survey of 26,000 people in 26 countries on 3 continents (Europe, Latin America and Asia) designed to assess the need for personal insurance coverage, and analyze changes in behaviours as well as peoples’ expectations towards insurance[1]. The online survey, which includes questions from a 2008 survey, was conducted with experts from the Ipsos opinion research company.

 

In 2019, people are mainly concerned with financial and social issues 

The concerns expressed by people surveyed in different countries are mainly linked to financial and social issues: pension financing (only 39% of respondents feel their situation is comfortable), social protection (43%), care for the elderly (46%), and purchasing power (47%), are the main individual and collective concerns.

The French are especially pessimistic compared with the European average in their assessment of the general economic situation (34% positive assessment compared with 53% in Europe), growth in purchasing power (23% vs. 46% in Europe), and pension financing (31% vs. 37% in Europe).

On the other hand, positive individual and collective perceptions dominate regarding housing (71 %), personal protection (nearly 65%), health and quality of health care (nearly 64%).

 

Multiple aspirations and plans for 2025 

Nearly 75% of respondents globally say they are confident in their personal future. However, there are significant differences between certain regions. Confidence in Asia was both highest (96% in China and India), and lowest, since only 48% of Japanese respondents expressed confidence in the future.

The French are less optimistic than the European and global average: 66% say they are confident, compared with 71% and 74%, respectively.

Asked to share photos or open ended answers, respondents expressed a multitude of ambitious aspirations for 2025. These plans ranged from dream jobs/financial stability, travel, a pleasant home, and an ideal family life, to happiness or purchasing a car. There were also very concrete responses regarding plans. Topping the list were holidays and material needs (purchase of household equipment, home renovation, purchasing a car or purchasing property), followed by education plans (for self or children, cited by nearly 53%) and entrepreneurial projects (nearly 50% globally and 75% among Latin Americans). People are thus more confident when they are actively involved in shaping their future.

Respondents are nevertheless concerned regarding life events: financial risks (financial loss or loss of income were cited by 72%), take precedence over physical risks (serious illness: 70%). This is a new development compared with the 2008 results, in which financial risk did not figure among the top three concerns.

 

Insurance for protection and to look to the future with confidence 

In this context, insurance is completely aligned with respondents’ expectations. To start with, insurance lets people protect themselves against unforeseen life events. Even though more than 60% of respondents (especially in Asia: 72%) feel well protected, nearly 67% (also especially in Asia: 83%) plan to subscribe insurance to protect against life events (financial loss, death, accidents, disability, illness, family event, theft, assault, etc.). 69% of the French feel better protected than the global average (61%) and the European average (64%). The French are also among those with the most insurance cover, although levels of cover are unequal: car theft and damage (61% vs. 36% globally), accidents (56% vs. 41% globally) and hospitalization (53% vs. 35% globally).

Insurance lets people look ahead to the future. Beyond savings and disposable income (58%), people want to know that their families and property will be protected thanks to insurance (28%), and 23% envisage taking out a loan to realize their projects.

Insurance will therefore play a pivotal role in the years ahead since it figures at the heart of major plans made by individuals and the means they intend to use to realize their projects. The feeling of security provided by insurance is therefore an important lever that allows people to take action and look to the future with confidence.

 

Creditor insurance and loans to secure and facilitate personal plans 

Credit is used to fund major projects: 51% of respondents have taken out a loan for a property acquisition and 72% expect to either take out a loan (or second loan) to purchase property, a car (56%) or to create a business (55%).

However, a loan can be a source of concerns: 69% of respondents believe that a serious illness could lead to an inability to repay a mortgage. 67% cite inability to work, disability and accidents, while job loss and death are cited by 66% and 64% of respondents, respectively. These concerns seem well-founded since 36% of respondents say they have previously encountered difficulties in repaying a loan (all categories of events included). This proportion shows significant growth: in 2008 only 22% of respondents said they had had problems repaying a loan.

In 2019, loan repayment protection is thus a more important issue than it was a decade ago.

In France, 62% of respondents (vs. 51% in Europe and globally) have previously taken out a mortgage. While purchasing property (76%) or a car (62%) are the two main projects for which people in France plan to use a loan, renovation work ranks third (53%).

Starting a business is fourth, with 42% of respondents (vs. 45% in Europe and 55% globally). Since they are well-assured, thanks in particular to loan repayment insurance, only 19% of the French have had problems meeting their monthly repayments (compared with 26% of Europeans surveyed).

What’s more, nearly two-thirds of respondents (65%) worldwide are aware of the availability of creditor insurance. They subscribe this insurance especially when they purchase property (42%) and cars (36%). The global respondents cite numerous advantages of creditor insurance: it protects their property (80%), their family (79%), it reassures them and provides peace of mind (77%), and facilitates the achievement of projects (74%). Creditor insurance also makes people want to achieve their projects (71%). In Latin America and Asia, percentages are significantly higher than the global average (+5 points for property protection and +6 points for family protection). Creditor insurance is above all perceived as a means to achieve plans by nearly 60% of respondents (compared with 41% in 2008). The trend is even stronger in Latin America (56% in 2019 vs. 36% in 2008). In France, creditor insurance is perceived as a means to achieve plans by 55% of respondents (compared with 64% at the European level).

 

Insurers are recognized as legitimate partners to support projects, but face numerous challenges 

• Maintain human contact: With the digital transformation, the primary challenge for insurers is to forge closer personal contact. The study shows that the insurance advisor is the contact of choice for 58% of respondents seeking information. What’s more, 72% of those surveyed say they would prefer a physical sales location to subscribe insurance. These channels must be supported by digital resources (websites, comparison tools, mobile apps, etc.) that facilitate the client journey.
• Strengthen recognition of distribution partners as insurance providers: 30% of respondents cite banks as the primary source for subscribing insurance products (ranked second, behind insurance companies), while 26% go to their bank when they want information (ranked 5th). The other insurance subscription channels (distribution partners from the automobile, telecoms, retail and other sectors) are currently not as well-known (cited by just 6 to 7% of respondents). BNP Paribas Cardif thus has a role to play to support the development of partners’ insurance expertise, as well as their recognition among the general public.
• Reconcile individual and collective benefits: insurers must find the right balance between:
  • the individual benefits of insurance with a refund of insurance premiums if no claims have been filed at maturity is ranked no. 1 among the criteria of an ideal insurance policy (39% of respondents), followed by personalization (36%), simplification (34%) and clarification (31%) of offers.
  • the collective benefits of insurance, about which respondents are more divided. The principle of solidarity is an essential criteria for just 13% of respondents. On the other hand, nearly a third agree that insurance should be accessible to the largest possible number of people “even the most vulnerable”.
• Support policyholders: Beyond claims processing (disability, immobilization, death, etc.), insurers must be able to offer additional services to policyholders to support them at all important stages of their lives. For example, if they had to stop working to care for a family member in the event of disability, 54% of respondents believe that it is indispensable to benefit from insurance cover that provides monthly payments, as well as aid to return to employment (advice, training, etc.: 40%) or psychological support (38%). In the event of immobilization, they feel it is essential to benefit from mobility support (47%), care for elderly relatives (43%), family assistance (38%) and medical tele-assistance services (35%). Lastly, in the event of death, they expect assistance with funeral arrangements (43%), repatriation of the body (47%) and transportation of a family member to the place of death (37%).

 

“Alongside our 500 partners in 35 countries, we are continually striving to improve our insurance offers around the world. To better meet the expectations of our clients we want to better understand and analyze their behaviour, as well as the ways they purchase insurance. By enriching our protection insurance and savings offers as well as our services and by making insurance accessible to the largest possible number of people, BNP Paribas Cardif is meeting the challenges identified by this study. We have pursued this approach for many years and we will continue to drive progress in the future,” stated Renaud Dumora, Chief Executive Officer of BNP Paribas Cardif.

Brice Teinturier, Deputy Managing Director of Ipsos France, added: “A billion people around the world today use their mobile phone as the sole means of accessing the Web and have a tablet. In 2020, 80% of adults will have a smartphone. This is why we used a 100% online methodology for this survey, which covers nearly 60% of the global population in this representative segment. Respondents were able to complete the survey from a computer, tablet or smartphone. They could also dictate answers and upload photos they felt were meaningful.”

 

Socially responsible investments in France has soared with an 11%* increase from 2017 to 2018! At a time when the future of our society is faced with major challenges, this new approach of finance raises a key question: can investments combine performance objectives with sustainable development principles? Here is a look at some answers.

Socially responsible investment (SRI) consists of taking non-financial evaluation criteria into account when deciding on investments. “We also call them the ESG criteria: E for environmental, S for social and G for governance. In practice, we look at the impact a company has on its environment, its social practices, particularly regarding employees, how it treats and communicates with shareholders...” said Olivier Héreil, Deputy Chief Executive Officer of Asset management at BNP Paribas Cardif.

 

France – the chosen land of SRI

The approach was created about thirty years ago mainly by religious congregations seeking to align their investments with their beliefs (for example, refusing to invest in companies that manufacture weapons or alcohol). With the surge in concerns linked to sustainable development, the movement grew to become a general trend in asset management. At the end of 2017, SRI represented nearly 5,000 billion euros in global assets, of which over 1,000 billion came from the French market alone **. “Our country was a historic breeding ground for these types of investments, especially with the heavy involvement of social partners and public institutions that drove the market forward. As a result, France was at the forefront in this area and is very active at the European level, whereas SRI remains a niche market in the United States and is just emerging in Asia,” said Antoine de Salins, Associate Director of I-Care & Consult, that supports public and private organisations in achieving their environmental transition.

Diverse approaches

SRI takes various forms. Managers can choose to exclude some companies from their asset portfolios, such as those that produce electricity from coal and thus contribute to the acceleration of global warming. They can also invest in the most advanced companies according to ESG criteria. This “best in class” approach culminates when we include in portfolios companies that are given the highest scores by non-financial agencies and that also innovate to find solutions to sustainable development issues. Lastly, there is the thematic approach. These are funds focused on topics linked to environmental protection and social issues, such as producing green energy, fighting poverty and promoting fair trade.

 

A virtuous loop

In all cases, SRI creates a “virtuous loop”. “It brings financial assistance to companies committed to addressing major issues that affect society as a whole. They can therefore mobilise greater means and resources to develop their activities and, consequently, their positive social impacts. Investors, for their part, give meaning to their investments, which they are more and more interested in doing,” said Olivier Héreil. Of course, the offer is still fairly recent and very diversified, which may hinder market growth due to the difficulty in understanding it (in a 2018 IFOP survey, only 8% of respondents said they knew what SRI was, as opposed to 22% who knew about participatory financing).  However, two developments should help to clear this obstacle. Firstly, efforts can be made in training and communicating with distribution networks to help them commercialize the proposed solutions. Secondly, labels are increasingly numerous and rigorous. In France, two of these exist: the SRI and CET (Climate and Energy Transition) labels. Launched in 2016 with support of public authorities, they aim at offering greater visibility of SRI products to savers. They guarantee that their management addresses strict specifications, which call especially for clear and transparent information.

Less risk, same performance

If SRI is winning people over, it is not because it is ethical but because it is both ethical and profitable. Risk reduction is its major asset. “A company is not only about financial statements: it is also a human community. If we stick solely to financial criteria to evaluate its quality, we are in for some unpleasant surprises. Not paying attention to governance quality, for example, can be costly to the investor”, said Antoine de Salins. Moreover, most of the academic research on the topic over the last few years has led to the same conclusion: SRI does not reduce performance but can even out-perform traditional investments on the long-term and reduce risks. 

 

Insurers – the key market players

Insurance companies play a key role in the development of SRI. They are actually long-term institutional investors. Yet, as Olivier Héreil recalls, “SRI brings its value over time.” That’s why life insurance is one of the best-suited financial products for this type of investment. “What’s more, insurers are now being pressed to develop responsible finance by central banks and financial regulators who have entered the game with a heavy hand.” In France, the public authorities are also inciting insurers. Following the law on energy transition in 2015 inviting insurers to include ESG criteria in their investments, the PACTE law, adopted in April 2019, requires that they propose a product with SRI labelled fund in their contracts from the year 2020.

BNP Paribas Cardif – a responsible insurer

This promising context should strengthen BNP Paribas Cardif’s historic involvement for the SRI. Such involvement is closely linked to the company’s mission to make insurance accessible to the largest possible number of people while being useful to society. It is based on one conviction, summarised by Olivier Héreil: “As an institutional investor, we have the dual responsibility of managing our policyholders’ savings by combining financial performance with a positive impact on society.” The company has been working towards this for the past ten years by deploying a global approach. It selects all of its investments by integrating ESG criteria. Since 2015, it has also financed over a dozen projects on renewable energy development through the Tera Neva green bond, and has invested in a real estate project in 2017 aimed at creating emergency accommodations for people in highly precarious situations.

 

Saving by being useful

At the same time, BNP Paribas Cardif gives its customers the opportunity to invest directly in SRI products, via unit-linked in particular. The company was even a pioneer in this area with the launch in 2008 of its first socially and environmentally themed funds eligible in life insurance contracts. Its range has since become much broader. Currently, in the BNP Paribas Aqua fund for example, clients contribute to strengthen access to good quality water by financing supply, treatment and sanitation facilities. With the Sycomore Happy@Work fund, they invest in European companies that are particularly careful about managing their human resources. “There are now rankings of companies considered to be great places to work and we realise that there is a link between happy employees and a company’s performance” said Olivier Héreil. This is added proof, if any were needed, that sustainability and profitability go hand in hand.

 

* Source: Novethic

** Source: the French Asset Management Association

 

Afin de proposer une nouvelle solution de transport à tous ses collaborateurs, BNP Paribas Cardif a mis en place depuis 2018, un partenariat avec Klaxit, spécialiste du covoiturage en entreprise. Avec plus de 500 inscriptions, le covoiturage se développe et se fait également entre différentes entreprises. C’est le cas de Melissa Corinthe, Responsable fidélisation client TPE chez Sodexo Pass France et Pascale Desfontaines, Responsable fabrication au service Communication France de BNP Paribas Cardif, qui partagent ensemble leurs trajets. Elles reviennent sur les avantages du covoiturage au quotidien.

 

 

Avant cela, quels étaient vos a priori sur le covoiturage ?

 

Mélissa : Mes seuls a priori concernaient les personnes que j'allais transporter. Je me demandais comment ça allait se passer, surtout que je suis une femme et que je ne conduisais que des hommes dans ma voiture. D'ordinaire, je ne suis pas timide, mais là, j'avoue qu'au début je suis un peu restée sur mes gardes.

 

Pascale : Je n’avais jamais fait de covoiturage. Je trouve que la voiture est un espace cocooning qui offre une certaine liberté. Je ne voulais pas me retrouver tous les matins dans une voiture avec une personne que je ne connaissais pas et me sentir obligée de discuter de sujets qui ne m'intéressent pas forcément. Je pensais que cela serait contraignant et je préférais ne pas covoiturer !

 

Comment s'est passée votre première expérience avec Klaxit ?

 

Mélissa : J'ai cherché des gens qui pouvaient m'emmener, mais finalement je n'ai pas trouvé de conducteurs à côté de chez moi. Je me suis donc proposée en tant que conductrice. Mon premier covoitureur habitait à Joinville, sur mon chemin, et on pouvait faire les trajets du matin et du soir ensemble. C'était aussi sa première fois en covoiturage et ça s'est bien passé toute la semaine. Il était très gentil et nous avons discuté de choses très diverses. Par la suite, j'ai eu une autre bonne expérience avec un deuxième covoitureur.

 

Pascale : Je suis revenue de vacances mi-juillet. Je savais que le tramway était en travaux pour une durée d’un mois. Comment aller au travail sans le tramway ? j’ai tout de suite pensé au covoiturage Klaxit. Le dimanche soir, la veille de ma reprise, j'ai lancé l’application Klaxit sur mon téléphone et  j'ai immédiatement trouvé pour le lendemain matin un covoitureur conducteur, qui passait juste devant chez moi. C'était inespéré ! Évidemment, il a fallu faire les présentations. Nous nous sommes aperçu que nous travaillions dans le même groupe BNP Paribas et le feeling est bien passé. Il m'a ainsi expliqué son métier chez Arval, société spécialisée dans la location de véhicules et moi, le mien à la communication chez BNP Paribas Cardif.

 

Cela a-t-il levé vos craintes sur le covoiturage ?

 

Mélissa : Oui. Nous avons beaucoup discuté et partagé avec les covoitureurs. Au fil des trajets, nous avons bien sympathisé. Le premier, qui était aussi DJ, m'a fait découvrir des musiques et le second m'a donné des jeux vidéo pour mon fils. Ce sont des choses que l'on aurait pu faire entre collègues de travail.

J'ai tellement apprécié ces moments qu'après cette première expérience en covoiturage, je suis partie en vacances et j'ai pris un covoitureur. Si je devais aller travailler en voiture, je crois que je prendrais quelqu'un tous les jours.

 

Pascale : Oui, car finalement, ce n'est pas aussi contraignant que ce que je redoutais. Dans la voiture, il n'y a pas d'obligation : certains jours nous discutons, à d’autres moments, nous écoutons la radio et, parfois, nous sommes dans nos pensées. C'est plus agréable que ce que je pensais. On se laisse un peu porter le temps du trajet et cela me permet de découvrir des endroits de la banlieue parisienne que je ne connais pas.

 

Si vous deviez lister les avantages que cela a représenté pour vous, que diriez-vous ?

 

Mélissa : Il y a bien évidemment un impact au niveau écologique, puisqu'on pollue moins. Et puis, s'il y a moins de voitures sur les routes, il y a moins de bouchons, donc moins de stress aussi. Même si on ne le fait pas forcément pour l'argent, cela représente un avantage financier et il faut bien avouer que les quelques euros gagnés lors du covoiturage sont appréciés au moment de faire le plein de la voiture. Et puis, au niveau humain, ça change du quotidien, ça nous ouvre aux autres.

 

Pascale : C'est un véritable gain de temps. Je ne fais plus des trajets d’une heure, avec des changements entre le tram, le train, etc. Mon covoitureur me récupère devant mon domicile pour m'amener quasiment sur mon lieu de travail en 30 minutes seulement. Du coup, je suis moins fatiguée. En plus, je n'ai pas à supporter la foule, le bruit et, lorsqu'il fait très chaud, je profite même de la climatisation dans la voiture.

 

L'aspect humain revient souvent dans vos réponses. Vos trajets avec Klaxit ont l'air de vous avoir permis de faire des rencontres intéressantes...

 

Mélissa : C'est vrai que dans les transports en commun, on voit plein de gens qui vont travailler au même endroit que nous et on ne se parle pas forcément. En voiture, c'est plus facile de nouer des liens, car nous sommes tous dans le même petit espace et nous pouvons plus facilement discuter. J'ai ainsi pu découvrir les activités de mes covoitureurs qui travaillaient chez BNP Paribas Cardif ou dans une association à la défense.

 

Pascale : Au départ, je pensais que Klaxit était réservé aux collaborateurs du groupe BNP Paribas, mais pas du tout, et j’ai covoituré avec des personnes travaillant chez Vinci et Arval. Cela m'a permis de connaître leur travail. Au départ, nous avons surtout parlé de nos métiers, mais au fur et à mesure des trajets, nous nous sommes mis à aborder des sujets plus personnels. Et finalement, une des personnes de Vinci m'a proposé de participer à un apéritif à la rentrée. Nous sommes à Nanterre, tous dans le même quartier, nous aurions très bien pu nous rencontrer dans le RER et faire le chemin ensemble, mais c'est le covoiturage qui a rendu ces rencontres possibles.