Agenda 2020 – highlights 2018
Business model optimisation
Mergers between composite insurers and bank insurance companies
The year of 2018 was marked by mergers between local composite insurers and life insurance companies specialising in bank distribution. Mergers took place in Hungary, Slovakia and Croatia in the 1st half of 2018, followed by Wiener Städtische and s Versicherung in Austria in the 2nd half of the year, and Kooperativa pojišťovna (Kooperativa) and Pojišťovna České spořitelny (PČS) in the Czech Republic at the beginning of 2019.
Merger of Compensa Life and Polisa-Zycie concluded in Poland
The Polish Group companies Polisa-Zycie and Compensa were merged on 30 May 2018. The merged company is one of the largest life insurance companies in Poland and will operate under the Compensa Life brand in the future. The Polisa brand is still used to sell group policies.
VIG merges AXA Life and BCR Life in Romania
AXA Life Insurance S.A. (AXA Life), which was acquired in Romania in 2017, was successfully merged with BCR Life on 1 June 2018. In the future, the merged company will operate under the BCR Life brand in the Romanian insurance market.
Closed file review
Use yesterday’s claims to save in the future
VIG has been systematically reviewing old claims since 2017. This closed file review (CFR) can identify potential areas of improvement in claims handling so that unjustified payments can be avoided in the future. First, possible overpayments are identified and then a detailed analysis is performed along the value chain to determine the specific reasons. Finally, appropriate changes are made to guidelines or processes based on the results, and special training is provided. The CFR initiative started with motor insurance in Poland and Lithuania and was rolled out in Bulgaria, Latvia and Romania and for initial areas of other property insurance in 2018.
Ensuring future viability
VIG expands assistance in Poland and Romania
Growth of the Polish assistance market led VIG to establish the company “Global Assistance Polska” in August 2018, which was preceded by the motor assistance centre that was established in 2016. The Global Assistance company established in the previous year in Romania has also been operating in the motor area since October 2018.
VIG RE starts in Paris
One year after the opening of its first branch in Frankfurt, VIG Re has now taken the second step in its planned internationalisation. The office in Paris will serve customers in France, Belgium and Luxembourg in the future. In addition to the German-speaking region this is another region targeted by the Prague-based reinsurance company for its expansion into Western Europe. Its customers will primarily be companies with regional portfolios and mutual insurance companies (“mutuelles”).
Cooperation with Erste Group extended
VIG and Erste Group have worked closely together in a very successful strategic partnership since 2008. In the middle of 2018, the cooperation was extended ahead of schedule until the end of 2033. As a result Erste Group customers will receive broader access to products and improved services in the insurance area. In the future, the cooperation will also be intensified online by the distribution of insurance products through the “George” web platform.
VIG Xelerate enters second round
Vienna Insurance Group invited its around 50 Group companies to pitch digitalisation projects once again. The “VIG Xelerate” programme was started in 2017 and promotes activities for digital transformation within the Group. The five projects from the first round receive a total of around EUR 1 million for implementation (see further below). VIG Xelerate gave the go-ahead for its second round of pitches in the autumn of 2018.
VIG Xelerate Initiative
An engine for the digital transformation
The following Group companies were the winners in the first round of VIG Xelerate. Their projects will receive a total of EUR 1 million in support.
GPI Holding (Georgia)
GPI digitalised sales of all individual policies and some B2B products and allows end customers to use online portals or an app to purchase and manage policies quickly and easily. A digital platform handles claims automatically, including claims evaluation. An app can be used to request assistance services and make doctor’s appointments.
Winner (Northern Macedonia)
Customers can use an app to report losses and check the status of processing, and Winner’s internal processes are simplified and automated at the same time. Customers benefit from faster, more transparent processing.
BCR Life (Romania)
BCR Life is developing a tablet-based advisory tool to help sales. It collects the data needed and immediately provides information on the customer’s needs.
Artificial intelligence is used to develop a rate system that adjusts prices and benefits to the customer’s individual needs – thereby optimising income.
Bulstrad Life (Bulgaria)
Customers can use the free mobile B-Assist app to make doctor’s appointments, compare medical providers and manage the documents needed for medical care. The app is directly integrated into the software systems of the medical partners.
Small companies systematically targeted
Small and medium-sized enterprises (SMEs) are the backbone of the CEE economic area. VIG therefore decided in 2012 to systematically address them in its markets. Each Group company made its own decision as to which sectors were attractive based on the potential customers and risks. Information was then prepared for the distributors to allow them to specifically address these companies. In the autumn of 2018, the Serbian Wiener Städtische developed a digital tool to help distribution and there are plans to use this tool in other VIG markets after a test phase. And the SME cyber-coverage offered by the Austrian Wiener Städtische is now also being distributed in similar form in Poland and the Czech Republic.
Organisation and cooperation
VIG Holding is responsible for Group management. A project to design a more effective management function began in 2018. The results are currently being evaluated.