Assicurazioni Generali New Challenges for the CEE Motor ... · July 1st 2016 Launched Vitality (GEV) in the health space Generali Versicherung and Aachen Munchener z Launched Better

© Generali CEE Holding, B.V.

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Assicurazioni Generali

New Challenges for the CEE Motor Insurance

Alberto MaciánHead of Global P&C Retail

Vienna, 15th February 2017

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2015 GWP €3.6 bn

2015 GWP €3.6 bn

Generali CEE: key figures

Regional leader in profitability

More than 9 million clientsAnd € 10 bn assets under management

Bulgaria (#7)Croatia (#6)Czech Republic (#2)Hungary (#1)Montenegro (#4)

Poland (#6)Romania (#8)Serbia (#2)Slovakia (#3)Slovenia (#5)

Market presence and position

• 5 yrs. Average Net Adjusted CoR 88,9%• Among the biggest asset managers in CEE

Top tier distribution network2,500 salaried sales and 12,000 agents

NPS score+53% (weighted average CZ, SK, HU, SRB&ME, SL)

Relative weight in the Group

GWP split per market GWP split per LoB

Source: internal company data; YE 2015

OR

PAT

GWP 5% 95%

9% 91%

13% 87%

Group

GCEE

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Generali CEE: Non-Life key figures

Country Market shareP&C

Market shareMTPL

Market shareCasco

Czech Republic 33,4% 31,0% 28,7%

Serbia (*) 19,7% 22,5% 15,2%

Hungary 19,6% 9,8% 25,9%

Slovakia 11% 11% 12,1%

Bulgaria 9,7% 4,7% 8,1%

Romania 6% 4,0% 10,7%

Poland 5,2% 6,8% 4,0%

Slovenia 4,6% 7,4% 6,6%

Croatia 4,6% 4,7% 4,7%

Data: 2015 for P&C Total; Q3 2016 for MTPL and Casco.(*) Includes Montenegro.

In the CEE region Generali insures more than 5.5 mln cars

Czech Republic2.185.000

Poland1.455.000

Serbia515.000

Hungary355.000

Slovakia315.000

Romania245.000

Bulgaria165.000

Slovenia140.000 Croatia

95.000 Montenegro40.000

# MTPL policies2015

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Generali CEE: car market statistics

New car registrations 2013 2014 2015 2Q-15 2Q-16 index 16 -15

Czech Republic 186 216 260 127 148 117%

Slovakia 75 82 90 43 50 116%

Poland 353 392 432 213 255 120%

Hungary 73 89 101 48 59 123%

Romania 70 85 100 43 47 109%

Slovenia 59 62 69 36 41 114%

Bulgaria 23 24 28 14 15 107%

Croatia 34 40 43 25 31 124%

EU 13 598 14 401 15793 8 202 9 013 110%

EU15 12 661 13 341 14 591 7 614 8 319 109%

Rest of EU 973 1 059 1 202 588 694 118%

EU = all EU 28EU15 = Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, UK RoEU = Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus, CroatiaSource: European Automobile Manufacturers association

Data in thous.

Increasing trend in new car registrations in the CE E region as well as in the whole EU.

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Generali CEE: regulatory trends and updates (1/2)

Czech Republic• New Civil Code in Czech Republic• The Senate passed amendments of the Act on Insurance transposing Solvency II Directive and Act on

Insurance Intermediaries (incl. regulation of commissions)

• The second pillar of pension savings has been definitely closed at the end of 2015.

• The third pillar of the pension system has changed since 1.1. 2016.

Slovakia• Cabinet approved expansion of 8% levy for insurance companies (non retroactive)• Legal protection of innocent damage participants might be improved - insurance company

might pay for the repair of the car in the full sum without amortization.

Poland• Another procedure of lowering liquidation fees in Life Unit-Linked has been completed. Additionally, another 4

companies reduced them (Generali, Aegon, Compensa, Open Life).

• KNF adopted product recommendations.

• The amendment to the Act on competition and consumer protection came into force.

• KNF issued a recommendation on compensation for non-property damage in MTPL.

• The process of determination and claim payments for Bodily Injury also as the subject of KNF

recommendation – claim costs about to rise.

• A session on U-L policies was held with the aim to extend reimbursement fees to all expired policies of the last

10 years.

Hungary• New Civil Code in Hungary• MNB (the central bank) is about to impose strict limits on the fees of non-pension-based U-L insurance

products.

• The cost of all the life insurances finally became public.

• New regulation regarding prices for old costumers – which cannot be higher than prices for new clients.

Regulation is one of the biggest factors affecting the insurance industry, obviously including motor insurance.

29 regulatory changes during 1H 2016 in CEE

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Generali CEE: regulatory trends and updates (2/2)

Romania• The final form of MTPL law was submitted to the Senators - introduction of bonus/malus system, direct

settlement, the possibility of signing the policy for smaller periods and its payment in installments, MTPL prices to be dependent on each driver history

• Two draft rules on recovery and insurers resolution have been approved (ASF will have power to lead company,

separate and sell its assets )

• Carriers and supervisory officials agreed to limit MTPL tariff for trucks. • Insurance Fraud Investigation Bureau to be set up.

Bulgaria• The new Insurance Code adopted by the end of 2015 – new requirements towards the capital and the reserves of insurance

companies together with improvement of pension funds legislation.

• Starting with 2016 cars without MTPL insurance to be unregistered – monitored by Traffic police via cameras

• As of 2016 insurance policies can be contracted electronically.

• Despite forecasts price of MTPL insurance decreased in the beginning of the year.

• New bill towards tightened control over banks, insurers and pension funds has been adopted.

Slovenia• Solvency II: The proposal of the Insurance Act regarding capital adequacy, corporate governance and reporting entered into force

on January 2016.

• Gradual change of retirement conditions came with January 2016 as fourth year of implementing the Act on Pension and

Disability Insurance.

• The suspended voting rights of Zavarovalnica Triglav have been reestablished in February 2016.

• The Ministry of economy has decided about mandatory mediation in banks and insurance companies regarding claims disputes –

clients to pay more in tariffs

Croatia• Complicated political situation is about to arise as the Prime Minister has been ousted by Parliament and early elections might

come. As a result investments by public sector are discouraged.

• After two consecutive years liberalization of MTPL prices still have effect in lowering prices.

Serbia• New government continues to prepare privatization of Dunav Osiguranje.

Regulation is one of the biggest factors affecting the insurance industry, obviously including motor insurance.

12 of them has a direct impact on MTPL


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Clientssegmentation

• Expand new areasof business

Innovative value-addedservices

• New value addedservices

Customer loyalty

• Reduction in number of churnersthanks to additional services

Claimsmanagement

• Immediate notificationof crash• Crash report utilization

for damage evaluation

Customer drivingbehavior

• Risk profile improvement• Self selection

Repair management

• Immediate attempt of «steering » to preferredbody shop

Revenue generation Cost reduction

A B

C

D E

F

Telematics allows the insurer to extract additional value (e.g. motor insurance)

Digital innovation is focusing on telematics …

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A new customer buys a policy

Going to the airport, the customer is offered

a travel policy

Alerts against any peril

Driving score through mobile App

Immediate assistance in case of accident

Renewal + other insurance proposals

Telematics box Driving behavior is monitored

Data stored in cloud Smart modelling Analytics using smart indicators

Claim assessment and fraud detection

NPS evaluationExample motor

Data security and data privacy are crucial for telematics business

• Data processes and data security are always compliant with local data protection regulations

• Anonymized and aggregated data and information are used in order to improve insurance modelling and to develop customized pricing and offering for our customers

• Data are used also for real time services and feedback

… allowing Generali to fit with the Customer journey

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It is key to define the most adequate products for each market/ target segment based on the maturity level…

Risk proxies

Utilization

Simple behaviors

using event counters

Full behavioral

rating

TRADITIONAL PAY AS YOU DRIVE PAY HOW YOU DRIVE

VALUE

• Estimated mileage• Garage location• Prior claim history

• Number of trips• Time of day• Mileage

• Acceleration• Braking• Cornering• Excess speed• Approximate location

(GPS)

• Maneuvers• Anticipation• Aggression• Adaptability

REQUIRED DATA INCREASES AS VALUE INCREASES

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…and the right technology based on the local environment

DESCRIPTION /MAIN CHARACTERISTIC

STRENGTHS

WEAKNESSES

BLUETOOTH STICKER + SMARTPHONE

WINDSCREENHARD-INSTALLED BLACK

BOXSMARTPHONE APP

� Sticker activating smartphoneapp via Bluetooth

� 2 Coin size� Internal Accelerometer and BT

� After-market device –windscreen

� Microphone and Speaker� Accelerometer� Push button for assistance� Sticked to front window

� After-market device – insidevehicle

� Internal/External accelerometer� Optional push button, crank

inhibition

� Very easy installation� Massive penetration

(smartphone)� Low Cost/good value of data

� Quality driver data� Quality accident data� Emergency call assistance via

the box� 2 wire installation

� Quality driver data� Quality accident data� Security upgrades

� Easy to remove� Phone needs to always be

present� No anti-theft effectiveness

� Professional installation� Low anti-theft effectiveness

� Professional installation� High costs and complexity

� Low reliability of data� No anti-theft effectiveness� Not adequate for event

reconstruction

� Easy to download the app� Massive penetration

(smartphone)� Suitable for “Try before you

buy programs”

AVAILABLE

SUPPORTED SERVICES

� Scoring� RSA� Social

� Emergency assistance� Crash reporting� RSA� Scoring� Social

� Emergency assistance� Crash reporting� RSA� Scoring� Social

� Emergency assistance� Crash reporting� RSA� Scoring� Social� Stolen vehicle recovery

AVAILABLETRIAL PHASE1

� Smartphone App

AVAILABLE

GENERALI � Generali Versicherung� AachenMünchener� CosmosDirekt

� Generali Seguros

� Generali Poisťovňa

� Generali Italia� Genertel

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z

We have many experiences of connected products across the Generali Group, which provide a competitive advantage in this area

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� Launched Generali Mobility (GEV) and Telematik (AMV) powered by MyDrive on July 1st 2016

� Launched Vitality (GEV) in the health space

Generali Versicherung and Aachen Munchener

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� Launched Better Drive powered by MyDrive on October 4th 2016

� Launched first pilot in connected home in January 2016 in collaboration with local domotics provider DEVOLO (about 3,000 policies sold)

Cosmos

z� Detailed within next slide

Generali Slovensko

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� Very successful with 1m motor policies� Fist PHYD product, Quality Driver ,

Launched by Genertel in 2011� New product Generali Sei in Auto con

Stile launched in June 2016 and a cooperation in place with Renault

Generali Italia & Genertel

z� Partnership in place in connected home with the local telco SFR

� Launched Vitality

europ assistance

z� PHYD solution “Pago Como

Conduzco ”, now being reshaped to launch a product powered by MyDrive

Generali Spain� Professional stolen vehicle recovery in

case of theft, 260.000 vehicles connected

La Caja

Almost 1,3 million connected insurance policies globally

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� Telematics product is called SOS Partner – Generali Slovakia

� Motor insurance with a special device which can automatically call help in a case of accident

� The client who is driving safety get a Bonus

� Connection with assistance directly from the car via the device

� Monitors and evaluate the driving style� MTPL discount up to 20%� CASCO discount up to 10%

� Innovation in pricing

Generali CEE: focus on Slovakia


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Conclusion

• CEE market has large room for development in terms of insurance telematics offerings, though some initiatives have been launched in Hungary, Czech Republic, Slovakia and Slovenia.

• Many of the programs in this market remain comparably small-scale or even on pilot level in terms of the number of policies

• CEE countries were previous years less prepared to see a strong take-off for UBI services compared to Italy or UK due to their lower-average premiums , low vehicle densities and, in some specific countries, higher percentage of non-insured vehicles

This may change in the future as the installed base of vehicles growsvery fast , the "insurance culture“ develops and the cost of telematics

equipment continues to fall .

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Thank you for your attention !

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Assicurazioni Generali New Challenges for the CEE Motor ... · July 1st 2016 Launched Vitality (GEV) in the health space Generali Versicherung and Aachen Munchener z Launched Better