[CONTENU PARTENAIRE] The funeral insurance market is enjoying good momentum, driven by various economic and social factors. On the strength of its expertise and its legitimacy, Mésange Prévoyance, a wholesale broker in personal insurance, intends to take advantage of this boom. The company has 62 employees divided between Ronchin (59) and Paris, and relies on a network of partners which allows it to network the whole country including in the DOM TOM. Jad Soukarieh, Managing Director, presents Mésange Prévoyance’s strategy to meet the needs of policyholders.
Mésange Prévoyance is a recent brand, but it benefits from a solid foothold in the funeral insurance market. Can you tell us more?
Indeed, Mésange Prévoyance was born from the merger of two brokerage firms, Fape Obsèques and Le Voeu Funéraire, which had existed for about forty years. This new brand, born on January 1, 2021, is part of the strategic project of the Burrus group, which wishes to develop the funeral insurance activity. Mésange Prévoyance aims to expand beyond the historical markets, relying on its expertise.
How is Mésange Prévoyance different?
We are a company that has existed since 1983, and which truly believes in the spirit of entrepreneurship. We are driven by the desire to help maintain independents in this market. All our funeral partners are closest to the customers, we strive to best meet their needs and to make the link between the insurers and the funeral professionals always in the interest of the customer.
Mésange Prévoyance relies on a strategy of differentiation. We are developing our management and wholesale broker activities around 4 areas:
1- Small and medium brokerage,
2- Institutions (insurers, mutuals or associations),
3- Management on behalf of third parties with a platform located in France (Ronchin),
4- Services for the benefit of partners and others for the benefit of policyholders and their relatives.
Why did you choose this strategy?
If we exclude the year 2020, hit by the Covid-19 epidemic, there are on average 600,000 deaths per year in France. However, only 30% of these deaths are covered by funeral insurance. There is therefore great potential to be seized if we want to acquire more market share.
Today, the majority of customers who take out a funeral insurance policy with our partners do so voluntarily. Either because there was a death in their entourage, or because they were able to raise the necessary capital. In both cases, they are made aware of the need for a funeral insurance contract. Our desire is to reach another part of the population through other distribution channels such as local brokerage. This strategy creates value for all the players in the chain; a broker can only offer a capital contract, the service contract being reserved for “funeral-qualified” professionals. Mésange Prévoyance has therefore set up services to create value for all stakeholders, while respecting the wishes of the subscribing client.
Funeral insurance is a highly regulated market. Does this represent a constraint?
Indeed, consumer associations have raised the excesses of certain professionals, in particular the lack of technical and legal mastery which makes it possible to explain in a clear and non-misleading manner the rules governing the subscription of a funeral insurance contract.
As part of its role, the Prudential Control and Resolution Authority (ACPR) has therefore enacted new rules and demanded that professionals like us improve the customer journey in terms of funeral insurance. After an inspection carried out by the ACPR in 2018, we have implemented a 100% compliant customer approach which has materialized through a digital subscription tool (the article of our legal expert to be consulted on the Mésange Prévoyance website) .
Today, Mésange Prévoyance is the only operator on the market to have this tool, stamped by the supervisory authority. We are also delighted to have received the ACPR’s closing letter for this inspection at the beginning of September.
Your sector of activity is also affected by the rise of digitalisation. What are the advantages ?
Our tool mentioned above is precisely 100% digitized. It is a compliant and ergonomic tool, allowing our distributors to present to their customers a complete customer journey from going to the electronic signature. This allows us to save time, to be more efficient and to ensure great protection for our policyholders. Contracts are sent to head office electronically, without loss of data. Our processing times are very short, with a maximum response at D+1. Our processes have improved as well as our customer relationship.
Currently, Mésange Prévoyance is working on the creation of a secure space, on the model of what exists for online life insurance. The insured will thus have all of his documentation and services available. Of course, in an approach to safeguarding the environment, we are moving towards zero paper. But we must not forget that people who take out a funeral insurance contract are on average 70 years old, a population that is not necessarily comfortable with digital technology. We therefore ensure, as part of our duty to advise, that each of our clients has a paper copy of the contract taken out, thus summarizing their rights and our duties.
Despite everything, the prospects point in the direction of digitization, since in 2025 France will have 17 million people aged over 60. However, these people will be accustomed to the Internet and digital tools.
What are the trends in your market?
Undeniably, the Covid 19 crisis has aroused concern among a certain part of the population, which will decide them to take out funeral insurance. It should also be noted that funeral costs have increased by 30% compared to 2010. On average, it takes 3,700 to 4,200 euros for funeral expenses, which represents a substantial sum for many families. Some policyholders therefore take out contracts with the aim of relieving their loved ones.
In addition, since the economic recovery, the demand is very important for certain materials such as marble and wood, which leads to an increase in prices and consequently this will impact the costs of funerals. All these factors must be taken into account and will most certainly encourage part of the population to take out funeral insurance. In 2020, the market was thus estimated at 1.6 billion euros. While in 2023, it should reach 1.8 billion euros. Mésange Prévoyance now has all the skills to conquer this booming sector.
Mésange Prévoyance in a few figures:
62 employees & 1 management center in France
300,000 contracts managed
700 million euros of insured capital
Funeral insurance products and associated services that meet the needs of policyholders as closely as possible
3000 distributor partners throughout France.
This content was produced with SCRIBEO. The BFMBUSINESS editorial staff did not participate in the production of this content.