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

Abstract

Finaccord' s report titled Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Spain offers detailed and unique insights into the behaviour of Spanish cardholders in the context of card protection insurance. Based on a primary survey of over 1,000 consumers in Spain 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 Spanish 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 Spain 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 Spain, 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 Spain 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 Spanish 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

• Payment cards are nearly universal while paid-for card protection insurance is not widespread
• Propensity to pay for insurance peaks in the middle and upper ends of customer segmentations
• A large proportion of cardholders without card protection insurance think that it is a valuable product
• Insured cardholders perceive that card protection insurance policies include many benefits
• Outbound telephone sales are far stronger in Spain than elsewhere
• ... and produce a high proportion of insurance sales more than a year after the card is acquired
• Credit card issuers sell card protection insurance more effectively than debit card issuers
• A majority of customers think that card protection insurance is both important and valuable to them

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
• Payment cards are nearly universal amongst Spanish consumers
• Percentage of cardholders in possession of card protection insurance
• Most cardholders have card protection insurance in Spain, but only a minority pay separately
• Propensity to pay peaks in the middle and the upper ends of demographic segmentations
• Attitudes towards card protection insurance of cardholders without cover
• A substantial proportion of cardholders believe that card protection insurance would be valuable
• Risks covered by card protection insurance
• Anti-fraud protection is the benefit most commonly provided by card protection insurance
• Distribution interfaces used for paid-for card protection insurance
• Outbound telesales of card protection insurance appear to be highly successful in Spain
• Point in time chosen to acquire paid-for card protection insurance
• Nearly a fifth of card protection insurance is sold more than a year after the card was acquired
• Card protection insurance is not often sold alongside a card when using remote interfaces
• Distribution channels used for paid-for card protection insurance
• Credit card issuers are more successful than debit card issuers at selling card protection insurance
• Attitudes towards insurance of cardholders with paid-for cover
• Customers who pay for separate card protection insurance may be few, but they are satisfied
• Customers aged over 45 are more likely to view card protection insurance as good value

3.0 APPENDIX

• Research sample
• The research embraces a total of 1,004 respondents in Spain
• Research structure

GRAPHICS / TABLES

• Percentage of respondents in Spain possessing any kind of payment card, 2008
• Percentage of respondents in Spain possessing any kind of payment card, 2008 (data)
• Percentage of cardholders in Spain in possession of card protection insurance, 2008
• % of cardholders in Spain 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 Spain without cover, 2008
• Risk coverage among insured cardholders in Spain, 2008
• Risk coverage among insured cardholders in Spain, 2008 (data)
• Distribution interfaces used to acquire paid-for card protection insurance in Spain, 2008
• Point in time chosen by cardholders in Spain 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, Spain, 2008
• Distribution channels used to acquire paid-for card protection insurance in Spain, 2008
• Attitudes towards card protection insurance of cardholders in Spain with paid-for cover, 2008
• Cardholders who find paid-for card protection insurance to be important but expensive by age, in Spain, 2008
• Sample breakdown in Spain by age group and household income band
• Sample breakdown in Spain by geographical location