Motor Insurance Trends and Specifities in SE Europe

Transcription

1 Motor Insurance Trends and Specifities in SE Europe

2 MARKET OF THE TRIGLAV GROUP Countries: Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Montenegro, Macedonia, Czech Republic Population: 30.9 million GDP per capita (Aug): USD 13,466 Size: 129,275 sq miles Everything will be alright, February

3 TRIGLAV GROUP POSITION IN ADRIA REGION MARKET LEADER PLACE INSURANCE COMPANY OR GROUP GROSS PREMIUM WRITTEN (USD) m MARKETSHARE IN ADRIA REGION SOURCE: DELOITTE Average exchange USD rate 2010 *The data for Triglav, Zdravstvena Zavarovalnica is not included in Deloitte s study GROSS PREMIUM WRITTEN (USD) m NET PROFIT/LOSS IN 2010 (USD) m Everything will be alright, February LIFE NON-LIFE 1. Triglav Group* 1, % Croatia Group % Agram Group % Adriatic Slovenica % Zavarovalnica Maribor % Vzajemna Health % / Generali Group % Kvarner Vienna Insurance Group % Dunav Group % Allianz % Grawe Group % Sava RE Group % (9) 13. Merkur Group % DDOR % Uniqua Group %

4 MOTOR INSURANCE market share(s) of the Triglav group 2010 Market share Overall Motor (%) 2010 Market share MTPL (%) 2010 Market share Motor Hull (%) Slovenia 48% 47% 49% Croatia 5% 4% 5% Bosnia and Herzegovina 8% 7% 9% Serbia 7% 8% 3% Montenegro 48% 49% 41% Macedonia 23% 20% 30% TOTAL regions in which the Triglav group operates 23% 20% 29% 2010 Market share Overall Motor (%) 60% 50% 40% 48% 48% 30% 20% 10% 5% 8% 7% 23% 23% 0% Slovenia Croatia Bosnia and Herzegovina Serbia Montenegro Macedonia TOTAL region where Triglav group operates Everything will be alright, February

5 MOTOR INSURANCE Triglav Slovenia Country: Population: Slovenia 2,0 M 2010 GWP (M ) Market Share (%) Average GWP ( ) Overall Motor 265,45 47,7% MTPL 141,11 46,6% 169 Motor Hull 124,34 48,9% Everything will be alright, February

6 GP W per c apita (in US D) GP W per c apita (in US D) EXPECTED DEVELOPMENT OF INSURANCE MARKETS GDP growth and low ins. density key growth drivers on target markets E U15 S L O MC D R OM CRO PL C ZR S E R BUL GDP per c apita (in US D) S L O MC D BUL C ZR R OM PLCRO S E R GDP per c apita (in US D) Everything will be alright, February

7 MOTOR INSURANCE regional overview (gwp) 2010 Overall Motor Market (M ) % 2010 MTPL Market (M ) % 2010 Motor Hull (M ) % Slovenia 557,08 37% 302,87 30% 254,22 53% Croatia 498,28 33% 381,11 37% 117,18 24% Bosnia and Herzegovina 150,63 10% 120,37 12% 30,26 6% Serbia 209,24 14% 148,88 15% 60,36 13% Montenegro 35,93 2% 28,33 3% 7,60 2% Macedonia 51,19 3% 38,32 4% 12,88 3% TOTAL region where Triglav group operates 1.502,35 100% 1.019,88 100% 482,48 100% Source: Subsidiaries 600,00 500,00 400,00 557, Overall Motor Market (M ) 498,28 300,00 200,00 100,00 0,00 150,63 Slovenia Croatia Bosnia and Herzegovina 209,24 35,93 51,19 Serbia Montenegro Macedonia Everything will be alright, February

8 MOTOR INSURANCE - Insurance density (motor gwp) Insurance density (Motor GWP) Slovenia Croatia Bosnia and Herzegovina Serbia Montenegro Macedonia Everything will be alright, February

9 MOTOR INSURANCE - (Motor Hull : MTPL) ratio Motor Hull GWP : MTPL GWP 0,90 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 0,84 0,31 0,25 Slovenia Croatia Bosnia and Herzegovina 0,41 0,34 0,27 Serbia Montenegro Macedonia Everything will be alright, February

10 MOTOR INSURANCE Distribution channels Distribution channels: Technical Check-ups Agents, commercialists, own selling points Exclusive Multiple Brokers Agencies Other Total Slovenia 56,6% 0,0% 21,0% 3,1% 16,6% 2,7% 100,0% Croatia 72,1% 0,0% 20,1% 0,8% 6,5% 0,5% 100,0% BIH - Krajina 30,0% 40,0% 27,0% 0,0% 3,0% 0,0% 100,0% BIH - Federacija 35,0% 30,0% 15,0% 3,0% 15,0% 2,0% 100,0% Serbia 40,0% 6,0% 8,9% 6,0% 39,0% 0,1% 100,0% Montenegro 5,00% 40,00% 40,00% 5,00% 10,00% 0,00 100,0% Macedonia (FYROM) 75,5% 0,0% 0,0% 22,0% 2,5% 0,0% 100,0% Source: Subsidiaries Everything will be alright, February

11 MOTOR INSURANCE Region specifities in general (SLO excluded) Key characteristics: - Unfair competition - Insurance frauds - High acquisition costs - Insignificant role of supervisory agencies Trends/Challenges: - Internet sale is increasing - Individualisation of risks - Liberalisation of MTPL market - Increased activities of supervisory agencies - To decrease acquisition costs Everything will be alright, February

12 MOTOR INSURANCE Slovenia GWP: MTPL + Motor Hull (M ) GWP MTPL + Motor Hull (M ) Source: Slovenian Insurance Association Everything will be alright, February

13 MOTOR INSURANCE Slovenia Population population ( in 000) Car density number of cars per inhabitants (31.12.) Source: Slovenian Insurance Association Everything will be alright, February

14 MOTOR INSURANCE Slovene Market 600 Road Safety Deaths for road traffic accidents Deaths for road traffic accidents per 1 mio inhabitants 0 Source: Slovenian Insurance Association Everything will be alright, February

15 MOTOR INSURANCE Slovene Market Source: Slovenian Insurance Association, Triglav Insurance Company Number of MTPL Claims Slovenian Market Triglav (Slovenia) Everything will be alright, February

16 MOTOR INSURANCE Slovene Market REASONS FOR DECREASE IN CLAIMS: Changes in the legislation regulating vehicle use and road traffic safety Development and construction of road infrastructure Motor vehicle safety Age structure of the population Influence of the crisis people drive less Better driving culture in general Everything will be alright, February

17 MOTOR INSURANCE Slovene Market MTPL Premiums and Claims Gross premiums written (in Mio ) Gross claims paid (in Mio ) Source: Slovenian Insurance Association Everything will be alright, February

18 MOTOR INSURANCE Slovene Market Current market conditions Good results in MTPL Price war: the fight for market share Not always professional commercial approaches Lowest price guarantee (the principle of offering products always below the price of any other competitor") bonus malus system fraud Constant search for new discounts Everything will be alright, February

19 MOTOR INSURANCE Slovene Market Motor Hull Premiums and Claims Gross premiums written (in Mio ) Gross claims paid (in Mio ) 0 Source: Slovenian Insurance Association Everything will be alright, February

20 MOTOR INSURANCE TRIGLAV (Slovenia) Production Product range in motor vehicle insurance was broadened in 2010 New car insurance packages brought: o o o Simplification of insurance policies Extended or added covers of insurance policies (bigger package discounts > cross-selling) Increased number of roadside assistance policies (importance of roadside assistance services on the increase) A better balance of insurance classes achieved (motor liability insurance, motor hull insurance) Everything will be alright, February

21 MOTOR INSURANCE TRIGLAV (Slovenia) Production future trends More pronounced differentiation based on vehicle user age and based on the number or group of vehicle users Greater effect of loss events > new bonus-malus systems Increased weight of deductibles Growing young driver problem Pay How You Drive systems Everything will be alright, February

22 MOTOR INSURANCE TRIGLAV (Slovenia) Claims: Own loss adjustment departments in all subsidiaries Better control, management, client proximity Greater client satisfaction, faster claim settlement, less fraud Use of well-established loss adjustment tools Own-developed software: o o o qualified partner automobile repair shops perform independent appraisals back-office on-line loss adjusters confirm/reject appraisal partner automobile repair shop starts with necessary repairs Everything will be alright, February

23 MOTOR INSURANCE TRIGLAV (Slovenia) Fraud Prevention, Detection and Investigation Office Formation in 2010, reporting directly to the Management Board Investments in IT infrastructure Fraud Risk Analysis Main goal is prevention through effective detection and investigation Everything will be alright, February

24 MOTOR INSURANCE TRIGLAV (Slovenia) Importance of technology Electronic operations: o o Introduction of E-pen Digital certificate Importance of the Central Insurance Register kept by the Slovenian Insurance Association o o Interconnection of databases and insurance registers between institutions Verification of insurance records for underwriting and loss adjustment purposes Option to advertise, offer insurance and report claims online or via smartphone (software being developed) Everything will be alright, February

25 MOTOR INSURANCE TRIGLAV (Slovenia) Conclusion: Focus on customer Convenience Diversification of products, Transparency Reputation/integrity Optimise internal processes (one to many systems) Everything will be alright, February

26 TRIGLAV GROUP With shared values MISSION We are building a safer future. VALUES Proffessionalism Security Corporate social responsibility VISION The vision of the Triglav Group is focused on profitability and safety of its operations. Return on Equity (ROE) will be higher than 12%. The sources of profit growth are competitive, high quality services, effective risk management and the financial stability of the Triglav Group. Everything will be alright, February

27 CORPORATE SOCIAL RESPONSIBILITY SAFE DRIVING CENTRE Everything will be alright, February

28 THANK YOU! Everything will be alright, February 2012