Finaccord' s report titled Creditor Metrics: Consumer Approaches to Payment Protection Insurance in France offers detailed and unique insights into the behaviour of consumers in the context of insurance that protects the payments linked to their borrowings. Based on a primary survey of French consumers carried out between June and August 2006, each holding at least one of a mortgage, a personal loan / consumer credit and a credit card, the research provides valuable data describing the extent to which they take out insurance to protect themselves in the event that they are unable to make the payments associated with the loan.

In addition to calculating the percentage of borrowers that buys creditor insurance in France, with separate sections dedicated to mortgages, personal loans / consumer credit and credit cards, the investigation also clarifies the types of insurance policy that consumers purchase - insurance designed and marketed specifically for protection of payments or other forms of protection policy? In addition, for each type of loan, it reveals the proportion of borrowers covered for each of the four main risks - death, permanent disability, temporary incapacity and unemployment - and verifies where, how and when the consumer acquired the insurance.

Finally, the report measures the degree to which borrowers are satisfied with their insurance and for consumers lacking insurance it investigates why they have chosen to remain uninsured.

0.0 EXECUTIVE SUMMARY

• Mortgage borrowers are more than twice as likely to possess insurance as credit card holders
• Most borrowers buying cover to protect their payments do so through specific credit prot. policies
• Cover for temporary incapacity is most frequently purchased in conjunction with mortgages
• There is plenty of scope to increase cross-selling rates for insurance covering unemployment
• Borrowers are most likely to buy insurance from the banking entity offering the lending product
• Postal sales are realised for all three types of credit prot. policy in a significant minority of cases
• A very small proportion of mortgage and non-mortgage borrowers buy insurance retrospectively
• The majority of consumers holding insurance linked to lending products appear to be satisfied

1.0 INTRODUCTION

• Finaccord
• European consumer research
• Creditor insurance
• Mobile telephone insurance
• Travel insurance
• European market, partnership and bancassurance research
• Research rationale
• Mainstream bancassurance markets are comparatively well documented...
• ... whereas creditor insurance is not
• Creditor insurance: a poorly understood "third" bancassurance market?
• The Creditor Metrics series offers vital benchmarking data for lending insts. and underwriters
• Research methodology
• The research embraces a total of 1,232 respondents in France
• Research strengths and weaknesses
• A mixed Internet and telephone research methodology produces balanced results...
• ... that offer a representative picture of consumers with at least one lending product

2.0 SURVEY ANALYSIS

• Introduction
• Mortgages
• % of respondents holding a mortgage
• % of respondents with insurance that protects their mortgage payments
• Attitudes towards insurance protecting mortgages of respondents without cover
• Types of insurance used by respondents to protect mortgage payments
• Risks covered by insurance used by respondents to protect mortgage payments
• Insurance used to protect mortgage payments - distribution channels
• Insurance used to protect mortgage payments - distribution interfaces
• Insurance used to protect mortgage payments - point in time obtained
• Attitudes towards insurance protecting mortgages of respondents with cover
• Personal loans / consumer credit (including car finance / leasing)
• % of respondents holding a personal loan, consumer credit or car finance contract
• % of respondents with insurance that protects their non-mortgage loan payments
• Attitudes towards insurance protecting loans of respondents without cover
• Types of insurance used by respondents to protect non-mortgage loan payments
• Risks covered by insurance used by respondents to protect loan payments
• Insurance used to protect non-mortgage loan payments - distribution channels
• Insurance used to protect non-mortgage loan payments - distribution interfaces
• Insurance used to protect non-mortgage loan payments - point in time obtained
• Attitudes towards insurance protecting loans of respondents without cover
• Credit cards
• % of respondents holding a credit card
• % of respondents with insurance that protects their credit card payments
• Attitudes towards insurance protecting credit cards of respondents without cover
• Types of insurance used by respondents to protect credit card payments
• Risks covered by insurance used by respondents to protect credit card payments
• Insurance used to protect credit card payments - paid for and free policies
• Insurance used to protect credit card payments - distribution channels
• Insurance used to protect credit card payments - distribution interfaces
• Insurance used to protect credit card payments - point in time obtained
• Attitudes towards insurance protecting credit card of respondents without cover

GRAPHICS / TABLES

• Sample breakdown by age group, household income band and geographical location
• % of respondents in France holding a mortgage, 2006
• % of respondents in France holding insurance that protects their mortgage payments, 2006
• % split of attitudes towards insurance that protects mortgage payments of resps. in France without cover, 2006
• Types of insurance used by respondents in France to protect mortgage payments, 2006 (1)
• Types of insurance used by respondents in France to protect mortgage payments, 2006 (2)
• Risks covered by insurance used by respondents in France to protect mortgage payments, 2006
• Distribution channels used by resps. in France to obtain insurance used to protect mortgage payments, 2006
• Distribution interfaces used by resps. in France to obtain insurance used to protect mortgage payments, 2006
• Point in time chosen by respondents in France to obtain insurance used to protect mortgage payments, 2006
• % split of attitudes towards insurance that protects mortgage payments of resps. in France with cover, 2006
• % of respondents in France holding a personal loan or consumer credit contract (inc. car finance / leasing), 2006
• % of respondents in France holding insurance that protects their personal loan / cons. credit payments, 2006
• % split of atts. towards ins. that protects pers. loan / cons. credit payments of resps. in France without cover, 2006
• Types of insurance used by respondents in France to protect personal loan / consumer credit payments, 2006 (1)
• Types of insurance used by respondents in France to protect personal loan / consumer credit payments, 2006 (2)
• Risks covered by insurance used by respondents in France to protect pers. loan / cons. credit payments, 2006
• Dist. channels used by resps. in France to obtain ins. used to protect pers. loan / cons. credit payments, 2006
• Dist. interfaces used by resps. in France to obtain ins. used to protect pers. loan / cons. credit payments, 2006
• Point in time chosen by resps. in France to obtain ins. used to protect pers. loan / cons. credit payments, 2006
• % split of atts. towards ins. that protects pers. loan / cons. credit payments of resps. in France with cover, 2006
• % of respondents in France holding a credit card, 2006
• % of respondents in France holding insurance that protects their credit card payments, 2006
• % split of attitudes towards insurance that protects credit card payments of resps. in France without cover, 2006
• Types of insurance used by respondents in France to protect credit card payments, 2006 (1)
• Types of insurance used by respondents in France to protect credit card payments, 2006 (2)
• Risks covered by insurance used by respondents in France to protect credit card payments, 2006
• Seg. of ins. used by respondents in France to protect credit card pays. between paid for and free policies, 2006
• Distribution channels used by resps. in France to obtain insurance used to protect credit card payments, 2006
• Distribution interfaces used by resps. in France to obtain insurance used to protect credit card payments, 2006
• Point in time chosen by respondents in France to obtain insurance used to protect credit card payments, 2006
• % split of attitudes towards insurance that protects credit card payments of resps. in France with cover, 2006