Clients appreciate an individual approach to pricing, a wide range of insurance products as well as convenient and modern claims handling procedures. Owing to this, the dynamics of sales of individual non-life insurances reached 102.4%, with written premium equal to PLN 2.1 billion at the end of 2014. In total, Warta companies offering life and non-life insurance booked PLN 4.9 billion gross written premium in this period.
(all figures based on local GAAP)
"We consistently invest in the development of our range of products and the improvement of our customer service processes. We wish to lead in these categories and to provide services adjusted to the expectations of large customer groups. Innovative approach to the risk assessment shows that simple decrease of prices does not have to be the only field of competition. Our excellent results achieved in 2014 confirm this thesis", says Jarosław Parkot, CEO of TUiR "WARTA" S.A. and TUnŻ "WARTA" S.A.
He explains that Warta developed the individualized pricing model last year. For instance, currently about 30 parameters are taken into account in the calculation of a motor insurance premium. As a result, every Warta customer pays according to his risk profile. This means that careful customers can count on really attractive rates while flat rates for customers younger than 30 years do not exist anymore.
Outstanding sales results in the individual non-life insurance segment, achieved in spite of fierce competition, confirm the effectiveness of these solutions. Positive dynamics were recorded in all key insurance lines: motor (102.1%), home (106.7%) and small and medium-sized enterprises (104.5%). In total, Warta booked PLN 2.1 billion from non-life insurance offered to individual clients, thus recording dynamics of 102.4%.
"These results also prove that the unique strategy of offering insurance under two brands, i.e. Warta and HDI, by all agents of the company is working out. Thanks to this, our clients can use a full range of individual motor, home and SME insurance products adjusted to their needs. We are constantly analysing customer needs. Therefore, in Warta everyone can purchase insurance exactly in line with their expectations", says Jarosław Parkot.
The quality of Warta's range of products has also been appreciated by experts. The jury of the Customer's Laurel 2014 competition recognised the "Warta OC Komfort" package with direct claims handling as the “Discovery of the Year”. Warta home insurance won the consumer ranking "Good Product 2015 – Consumer Choice" for the third consecutive year. The representatives of different garages granted the "Złoty Zderzak" (Golden Bumper) award to Warta in recognition of its smooth claims handling procedures. Representatives from the industry evaluated the procedures for providing replacement cars, the smoothness of the claims handling procedures as well as the correctness and speed of paying out compensation.
"I am pleased with the fact that we can already see the first effects of a range of investments in the area of claims handling, including our new IT system – regarded as being one of the best in the world. Its implementation will help to improve our efficiency and customer service. Additionally, we are working on new solutions to reduce the waiting time for compensation", says Jarosław Parkot.
In 2014 twice as many individual clients with material claims under MTPL and MOD insurance were processed under the fast-track claims handling procedures than in the previous year. Currently one in five cases are being handled under a simplified procedure, i.e. without the need for an inspection by an expert. The use of a modern smartphone application to inspect the extent of damage online will help to improve this ratio. Thanks to this, clients no longer have to arrange a meeting with an expert while they receive their compensation sooner because the claims handler can inspect the damage directly by using the client's smartphone. However, if an inspection by an expert is necessary, it is carried out faster and more efficiently than a few months ago. This is possible through the implementation of a special application designed for experts, who have now been equipped with smartphones.
The sale of life insurance in segments most important for the company is on the rise too. The dynamics of revenues from insurance generating regular premiums and from group insurance stood at 104.9% and 112.7%, respectively. Total revenues from life insurance exceeded PLN 1.54 billion gross written premium. Of this, PLN 1.19 billion (77%) involved revenues from premiums from the bancassurance channel.
"At present we cooperate with 14 banks representing about 45% of the Polish banking sector. We have been continuing our efforts to build relations with more banks, and the results of this are especially visible in life insurance. In the fourth quarter of 2014 we booked PLN 484 million of gross written premium thanks to the banks, rising from the average of PLN 235 million in the previous quarters. We wish to use our long term experience to become a leader in bancassurance", declares Jarosław Parkot.
The sales success translates into excellent profitability for Warta companies. In spite of the aggressive price competition, the technical result for the non-life company was nearly PLN 121 million (as compared with PLN 97 million in the previous year). The financial result of PLN 279 million was also better than the result achieved in the same period of the previous year. The life company also improved both basic profitability parameters, with the technical result exceeding PLN 35 million while the financial result reached PLN 28 million.
Both companies traditionally guarantee stability for their customers. The financial safety parameters are higher than the statutory requirements. The solvency margin coverage ratio of non-life Warta amounted to 325% while the coverage of the technical provisions ratio amounted to 121%. For the life company, these ratios were 237% and 112% respectively. It is also worth mentioning that the rating agency, Standard & Poor’s, awarded Warta an "A+" financial strength rating with a stable outlook. Warta is the only insurance company registered in Poland with such a high rating.
Premium – key data:
Profitability – key data:
For more detailed financial data, see the attached tables.