The financial services market in Germany is characterised by cut-throat competition. Banks, investment companies, insurance companies, investment advisers, pyramid sales organisations, independent financial consultants, etc. are all vying for clients. Overall, the market is very heavily fragmented. Added to this are the problems the sector faces due to new legislation such as the EU Insurance Mediation Directive, the Markets in Financial Instruments Directive (MiFID) and the German Insurance Act, introduced in part for consumer protection, as well as stagnating commission revenue. Small and medium-sized insurance offices are now in a position where they can barely meet the ever increasing requirements of quality consulting and financial power.
The market is seeing consolidation.
In 2009, MLP once again used market consolidation to expand its market share through acquisitions. Following the 2008 acquisition of TPC, the specialist in occupational pension provision, the finance broker ZSH was taken over in 2009. ZSH looks after wealthy private clients, including many physicians and dentists, one of MLP’s main target groups. With these targeted purchases, MLP is strengthening its leading role in the independent financial service provider market. According to the Tillinghast sales channel survey performed by Towers Perrin, some 56 % of insurance companies rate independent financial service brokerage as their most important form of sales. No other sales channel can boast this success or such great growth forecasts.
The situation in Germany’s financial services market has changed markedly over the course of the last few years. Competition has become fiercer, not least due to the appearance of more competitors. At the same time, regulatory requirements have been tightened with measures to increase consumer protection in Europe. Only the very best financial services providers can sustain long-term profit in an environment such as this.
| Old-age provision |
MLP is focused on the growth markets of old-age provision, health care and wealth management. In the following the framework conditions of these markets are described: Our core competency of old-age provision is an area that has enjoyed increased popularity over the last few years through Germany’s pension reform. Increased awareness among Germany’s
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| Health care |
The continuing political debate concerning the structure and financial viability of the healthcare system has heightened awareness among broad segments of the population that the state health insurance funds are no longer able to provide an adequate range of treatments and services. The imposition of supplementary premiums by many state insurance funds, coupled with a simultaneous reduction in the range of treatments and services offered, are driving consumers to increasingly take out private health insurance to cover their requirements. Consequently, the level of interest in switching to private health insurance or in securing supplementary health insurance remains high.
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| Wealth management |
Growth prospects in the high-end retail banking business and the field of wealth management
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MLP Team Investor Relations
Alte Heerstraße 40
D-69168 Wiesloch
Phone: +49-6222/308-8320
Telefax: +49-6222/308-1131
