Favourable results of the company against the sector, innovations implemented in almost any business area, news products enhancing the offer for customers – 2015 was a very successful year for Warta despite the difficult market situation. Also for this year, prospects for Warta are positive.
2015 proved to be a demanding period in the non-life insurance market. Against that background, Warta generated very positive sales results while maintaining high profitability. The total gross premium written in 2015 was PLN 3.59 billion which was a growth by 7.1 percent in relation to 2014. The growth trend was continued by all core insurance segments: SMEs (16.7 percent), housing (4.8 percent) or motor insurance (0.7 percent). Overall individual insurance collected premiums by 18.8 percent higher than in 2014 and totalled PLN 2.46 billion.
“Without any doubt I can say that Warta is a market leader both in terms of results and effective implementation of useful innovations. They cover almost every area of our Company’s business, including customer service, sales, communication or risk assessment processes. It is crucial that we can already notice their positive impact on customer satisfaction, growing sales and the excellent financial results we generated in 2015. I am proud to say that we are most probably the only company in the market that maintained most of the financial results from 2014 along with a growth of premium written”, says Jarosław Parkot, President of the Management Board of TUiR “WARTA” S.A. and TUnŻ “WARTA” S.A.
The good results in motor insurance which is the segment most exposed to pricing competition, was affected by innovative on-line tariffs providing for the best market match of policy prices and customers’ characteristics. Within about one second the agent receives a proposed premium based on a number of variables – many more than are used by competitors. The price is calculated in a cloud on-line, in compliance with the most recent technological trends. Warta has also implemented new technologies e.g. in sales processes and customer service.
“We also keep focusing on the loss adjustment process. We are aware that for a majority of customers this is the time that manifests the quality of operation of insurance companies. Therefore, for a number of years we have been setting standards in that category and last year we were the first in Poland and among the first in Europe to implement an online application dedicated to claims adjustment. This is a revolution in the market as it remodels communication between customers and claims adjusters which significantly facilitates and accelerates the entire process. Additionally, we keep working on other solutions some of which will be implemented this year,” says Jarosław Parkot.
The Warta Mobile application used for mobile claims adjustment has been of interest among customers. By March 21st it was used by more than 3.5 thousand users who reported their claim to Warta by telephone. With a smartphone, customers are able to perform activities related to damage to property, including remote inspections held jointly with the claim adjuster. There has also been a growing interest among our customers in BLS (Direct Claims Settlement), another innovation introduced by Warta. Only last year Warta adjusted over 5 thousand claim cases with the system. Additionally, using the product OC Szybka Wypłata [Civil Liability Fast Disbursement] which is provided free of charge to Warta’s Civil liability insurance, customers may also report losses that is not adjustable within BLS (Direct Claims Settlement). The solution was used by customers for 3.3 thousand losses.
Growing sales were also recorded in the area of life insurance. The overall related revenues grew by 6.6 percent and reached PLN 1.65 billion. Specifically, dynamic growth was recorded in the area of group insurance (30.1 percent) and structured policies (20.9 percent). Bancassurance remains the core channel, responsible for 75 percent of sale of life insurance products.
“The growth rate of life insurance premium is very satisfactory to us. This includes very good news of the exceptional sales levels of the group product Warta dla Ciebie i Rodziny [Warta for You and the Family] which was offered with success also by non-life agents. This is an innovative approach and the effects were beyond expectations and therefore we plan to extend the range of life insurance products in that distribution channel. We also plan to initiate a new trend in bancassurance by significantly extending the offer with insurance products. Soon we are to start the sale of such products jointly with our new partner. As a result we plan to increase sales in this channel even faster after last year’s increase by 30 percent,” adds Jarosław Parkot.
Very good sales of insurance products are translated into good results of the companies. Despite keen competition, Warta almost maintained the technical result of the non-life insurance company which amounted to over PLN 108.5 M. Also the net profit was maintained at a high level in relation to the entire market – last year it was PLN 261.2 M. A major improvement was recorded by the life-insurance company whose technical result was over PLN 41.5 M while the profit was almost PLN 35.7 M.
Additionally, the customers’ financial safety was maintained at a high level which is manifested in the relevant indicators much above the statutory requirements. The equity to solvency margin ratio at the non-life insurance Warta was 314 percent of which the asset to technical reserve ratio was 119 percent. For the life-insurance company, the ratios were 211 percent and 112 percent respectively. The financial strength rating assigned to Warta by Standard & Poor’s has been at a high level of A+ with a stable outlook. Warta is the only insurance company registered in Poland with such a high rating.
(All figures based on PAS standard)