► Revenue Stock: revenue stock refers to the revenue volume billed by Wiz in a given month/period related to sales from previous periods. Some products sold by Wiz generate a long-term revenue stream; we are entitled to receive commissions from time to time for the entire duration of the insurance agreement. This revenue stream, which we call “revenue stock”, is the result of the following characteristics of insurance products: (i) long-term coverage; and/or (ii) high rate of renewal of existing policies. Our results are thus supported by new sales and the revenue stock created by sales from previous periods.
► Bancassurance Products: insurance products that have a strong fit with bank distribution channels. These are simple products than can be easily understood by customers. These products are typically offered when the customer is carrying out a banking transaction at the branch. Products in this segment are Life, Credit Insurance, Mortgage and P&C (Residential and Corporate MR).
► Traditional Insurance Products: these are typically distributed outside CAIXA’s branches, with sales taking place mainly through remote channels (call centers and co-brokers). These insurance products have a strong value perception among customers. This segment comprises: Auto, Health and Special Risks.
► Other Products: comprises three financial products: Pension Plans, Consortium (sold at CAIXA Network) and Savings Bonds. These serve as an alternative to products offered by the bank (E.g. Pension plan x Funds and Savings Bonds x Savings account).
► Life: brokerage of Life insurance products. Sale of products to individuals (through monthly, early or single payment) and corporations. Main items of coverage of Life products are: (i) Death, (ii) Permanent Disability and (iii) Personal Accidents. Commission payments are made throughout the customer’s insurance payment cycle.
► Mortgage: brokerage of Mortgage insurance. Mortgage Insurance includes coverage for death and permanent disability (MIP) as well as physical damages to the property (DFI). Wiz earns commission through two formats: (i) Brokerage – Percentage of commission on the monthly premium paid by customers (ii) Upfront – Upfront fee paid exclusively on the first installment of the Mortgage Insurance.
► Credit Insurance: brokerage of Credit insurance. The Credit insurance is mainly offered through payroll credit offered at CAIXA branches, intended to Individuals or Corporations. Insurance coverage for death or permanent disability. Commission is paid at the time of issuance of the insurance policy.
► Property and Casualty: brokerage of the Residential and Corporate Property product. Coverage of physical damages to property and contents, for residential and corporate properties. Commission payments are made throughout the customer’s insurance payment cycle.
► Auto: brokerage of Automobile insurance products. Basic coverage for collision, fire, robbery, theft and material damages caused to third parties. Commission payments are made throughout the customer’s insurance payment cycle.
► Special Risks: brokerage of diverse structured insurance products sold in the corporate segment. The main Special Risks products are: Warranty, Completion of Construction, Agro Insurance, D&O, Civil Liability, Fleet Insurance, among others. These products are offered through our own sales force and co-brokers.
► Health: brokerage of the Health and Dental insurance product in the corporate segment. These products are offered through our own sales force and co-brokers.
► Consortium – Partners Operation: commissioning of the Consortium products sold in the Partners Operation, where we operate in open sea. The Consortium product is a type of purchase based on the union of persons in groups to create a saving account that will be intended to the purchase of goods. The Consortia sold in this channel are managed by the Caixa Seguradora Group.
► Breach of Warranty Insurance: brokerage of the Breach of Warranty Insurance intended to the clients that purchase letters of Consortium. The insurance is used to guarantee the group of consortium members if any of them is in default after being contemplated.
► Branch Channel: the channel corresponds to operations in CAIXA’s branch network. Costs related to the sales force are recorded in this channel and the main cost component includes the sales assistants, who are physically present at the main CAIXA branches.
► Remote Channels: the channel corresponds to operations in remote channels outside CAIXA’s branch network, including mainly our own Call Center, which was internalized and insourced in August/2016.
► Channel/Partners Operation: the channel corresponds to the operation of Wiz in the sale of Consortia to open sea, after the acquisition of 100% of the quotas of the company Finanseg Administração e Corretagem de Seguros Ltda., in June/2017.
► Backoffice: The Wiz department responsible for supporting Caixa Seguradora in background activities, such as, for instance, regulation of loss for specific product lines and follow-up of quotas and winning of the Consortium lottery. Expenses with personnel is the main cost component of this channel.
► General and Administrative Expenses: Wiz’s expenses with administrative support, marketing, occupation costs and technology are recorded in this group. The main areas included in General and Administrative Expenses are: (i) Finance; (ii) People & Management; (iii) Technology; (iv) Legal and Compliance and (v) Marketing.
► ASVEN (Sales Assistant): Wiz’s Sales Assistants are allocated to the main CAIXA branches. They play an important role in assisting the branch in reaching its insurance sales targets and operate mainly in two ways: (i) assisting in the sale of Bancassurance Products at the branches by monitoring performance indicators generated and managed by Wiz; and (ii) participating actively in the sale of Traditional Insurance Products, directly or referring potential clients to our call center operation.