Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Italy

Abstract

Finaccord' s report titled Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Italy offers detailed and unique insights into the behaviour of Italian cardholders in the context of card protection insurance. Based on a primary survey of over 1,000 consumers in Italy carried out in July and August 2008, the research provides valuable data describing the extent to which consumers with debit and / or credit cards take out card protection insurance and clarifying the proportion of uninsured cardholders who value the benefits of the insurance but have simply not got round to acquiring cover. In addition to calculating the percentage of Italian cardholders possessing card protection insurance, the investigation also analyses the types of policy that they hold (i.e. insurance that they are paying for separately or free cover), the range of benefits that they believe that they derive from their insurance, which distribution channel and interface they use to take out paid-for card protection insurance and whether they buy cover within a week or a month of acquiring a given payment card or at a later stage. Finally, the report measures the degree to which insured cardholders in Italy are satisfied with their insurance, whether they find it expensive and if they are likely to discontinue it the next time that it comes up for renewal. Key features of this report include: - robust analyses showing the percentage of cardholders that acquire card protection insurance in Italy, the potential for this proportion to grow further and how cross-selling rates differ between debit cards and credit cards; - unique data describing the proportion of cardholders who understand that the insurance that they possess provides them with particular benefits and services; - accurate statistics illustrating the extent to which sales of card protection insurance in Italy are made through remote interfaces (i.e. Internet, telephone and post) in addition to through face-to-face contact; - reliable information displaying how quickly cardholders are inclined to purchase card protection insurance once they have acquired a payment card; - valuable insights into the reasons given by Italian cardholders for not acquiring insurance (for example, because they have not had time, because it is too expensive, because they did not see the benefit).

Table of Contents

0.0 EXECUTIVE SUMMARY

• Although the vast majority of consumers have a payment card, few pay for card protection insurance
• Younger cardholders are more likely to pay for insurance
• The number of customers paying for card protection insurance could realistically double
• SMS text messaging is a popular feature of card protection insurance in Italy
• Face-to-face, Internet and telephone distribution all play a role in selling card protection insurance
• Providers must keep promoting card protection insurance over time for remote card sales
• Women are less satisfied with the cost of card protection insurance than men

1.0 INTRODUCTION

• Research rationale
• Consumer research illustrates the differences between Europe' s five most populous markets...
• Finaccord
• European consumer research
• Card protection insurance
• European market, partnership and bancassurance research

2.0 SURVEY ANALYSIS

• Introduction
• Percentage of respondents possessing any kind of payment card
• Over 80% of consumers hold a payment card in Italy
• Percentage of cardholders in possession of card protection insurance
• Only a small minority of cardholders are paying separately for card protection insurance
• with cardholders in the lower- to middle-income and age bands most likely to pay separately for it
• Attitudes towards card protection insurance of cardholders without cover
• The research indicates that there is an opportunity to double the size of the Italian market
• Risks covered by card protection insurance
• SMS text messaging when a card is used is a widespread feature in Italy
• Distribution interfaces used for paid-for card protection insurance
• Distribution uses a blend of face-to-face, Internet and telephone
• Point in time chosen to acquire paid-for card protection insurance
• A half of card protection insurance policies are sold at the same time as the card
• with many cards being distributed remotely
• Distribution channels used for paid-for card protection insurance
• Credit card issuers are slightly ahead of debit card issuers for upselling card protection insurance
• Attitudes towards insurance of cardholders with paid-for cover
• The majority of customers with card protection insurance are satisfied
• Women with insurance are less convinced of the value of card protection insurance than men

3.0 APPENDIX

• Research sample
• The research embraces a total of 1,006 respondents in Italy
• Research structure

GRAPHICS / TABLES

• Percentage of respondents in Italy possessing any kind of payment card, 2008
• Percentage of respondents in Italy possessing any kind of payment card, 2008 (data)
• Percentage of cardholders in Italy in possession of card protection insurance, 2008
• % of cardholders in Italy in possession of card protection insurance segmented by gender, age group and annual household income, 2008 (data)
• Attitudes towards card protection insurance of cardholders in Italy without cover, 2008
• Risk coverage among insured cardholders in Italy, 2008
• Risk coverage among insured cardholders in Italy, 2008 (data)
• Distribution interfaces used to acquire paid-for card protection insurance in Italy, 2008
• Point in time chosen by cardholders in Italy to acquire paid-for card protection insurance, 2008
• Frequency with which card protection insurance is sold at the same time as the card itself, face-to-face and remote interfaces, Italy, 2008
• Distribution channels used to acquire paid-for card protection insurance in Italy, 2008
• Attitudes towards card protection insurance of cardholders in Italy with paid-for cover, 2008
• Cardholders who find paid-for card protection insurance to be important but expensive by age, in Italy, 2008
• Sample breakdown in Italy by age group and household income band
• Sample breakdown in Italy by geographical location