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Warta: highly valued service quality, increasing profitability

The exceptional quality of claims settlement and the high level of cooperation with agents and brokers ensured Warta an increase in premium written and the maintenance of high profitability. In 2019, Warta will implement further innovations, among others, improving the quality of customer service and accelerating the claims settlement process.   

  • The Warta non-life insurance company earned PLN 5.6 billion of gross written premium in 2018, which is 9% more than in 2017.
  • In life insurance Warta continues to show highest sales in regular premiums on the market, which resulted in an increase in gross written premium in a life insurance company to the level of PLN 809.9 million (0.5% y/y).
  • In total, both Warta companies earned a premium of almost PLN 6.4 billion last year.
  • The value of compensations and benefits exceeded PLN 4.3 billion.

– Despite demanding market conditions and regulatory changes, 2018 was a very good year for Warta. New technologies implemented in previous years allowed us to offer the highest quality of after-sales service among all insurers, confirmed by the objective comparison of the Financial Ombudsman. That, as well as modern pricing and an exceptional level of cooperation with  insurance producers, resulted in a further increase in revenues and financial results, even when compared to a very good year 2017. The company’s unique profitability allows us to ambitiously implement further projects such as the use of artificial intelligence and automation in claims settlement or the extensive use of Big Data in the pricing of non-life insurance. The positive effects of these works will be visible to clients later this year – says Jarosław Parkot, the President of the Management Board of Warta.   

Non-life insurance 

The total gross premium written in 2018 amounted to PLN 5.6 billion, increasing by 9% compared to 2017. Insurance for individual clients earned a premium by 8.9% higher than in 2017, reaching PLN 4.1 billion. While the corporate insurance premium increased by 9.2%, reaching the level of PLN 1.5 billion.

For another year in a row Warta achieves a stable increase in gross written premium. An important aspect of this process is the use of modern Big Data tools, which have enabled the company to analyse the data used during the pricing more quickly and effectively. For example, motor insurance policies in Warta are calculated on the basis of over 600 variables, which actually allow for individual adjustment of the insurance price to the client. This year, their number may grow to a thousand, which shows how advanced and complicated the process of calculating premiums is at the moment. In Warta, through the use of modern analytical tools, the client receives a price offer just a few seconds after the entering of basic data.

The innovations we implement must fulfil one task, i.e. bring measurable, useful benefits for the client and the company. Such a solution includes Big Data tools, which allow us to offer our clients a good policy price while maintaining the company’s profitability at a very high level. Only in 2018 the ROE of the non- insurance company amounted to 20.9%, which is a very high result compared to the market  – emphasizes Jarosław Parkot.

The corporate insurance segment at Warta is currently undergoing a change, which has already resulted in last year’s dynamic premium growth. Warta is working on further increasing the profitability of this business line through further dynamic growth of sales, automation and simplification of processes, as well as increasing the quality of customer service and claims handling.

Claims settlement – new technologies improve client’s comfort

The Warta non-life insurance company handled 501 thousand claims in 2018 which translated into PLN 3.4 billion in compensations and benefits.

In 2018 Warta continued its plan to implement new technologies in the area of claims handling and operations. During this time, 13 processes related to the payment of group insurance benefits, registration of car purchase and sale agreements or termination of third-party motor insurance agreement were automated. Projects with the use of artificial intelligence have also been launched and mobile solutions already in use have been developed to help clients go through the claim settlement process. The effect of these actions was, among others, the achievement of the leading position in the group of non-life insurers included in the Financial Ombudsman’s report. This is the only fully objective comparison showing which insurers have the best handling of clients’ claims.

New technologies implemented in previous years have resulted in an increase in the quality of customer service. Last year we also implemented many solutions to accelerate the claims handling and increase the comfort of our clients. In 2019, we will continue the direction by implementing a number of robots which automate processes and we will launch further solutions using artificial intelligence in the field of speech recognition during the telephone reporting of loss and images during the valuation of loss. They are to significantly shorten the time needed to solve the client’s problem, and enable our employees to focus on more complicated matters – emphasizes Jarosław Parkot.

Life insurance – the dynamic growth in insurance with regular premium

In 2018, Warta continued the strategy of basing the life insurance company on products with a regular premium, achieving by far the highest sales dynamics on the market, which amounted to 19% compared to 2017 and reached the level of PLN 660.2 million. This increase enabled the Company to compensate for lower sales of products with a single premium, which, however, still retain their due position in the offer of Warta. In total, Warta’s life insurance company collected PLN 809.9 million of gross written premium.

– The decision to focus on products with a regular premium brings spectacular results. Warta maintains its leading position in terms of sales growth in this insurance category. In 2018, sales of such insurances increased by 19%, with the average for the market at the level of 0.4%. What is more, in the period from 2016 to 2018 we increased the income by almost 50%, using the potential of very good products and a wide network of property and life agents – says the President of the Management Board of Warta and adds: “This year we will continue our course on products for individual clients. We will also introduce significant changes in the processes and offer for enterprises, including the introduction of an innovative sales model that improves profitability while maintaining further dynamic growth of the premium. We also devote a lot of attention to the Employee Capital Plans. We want to play a significant role in this market.

In December 2018 Warta, as the first insurance company, confirmed the offering of Employee Capital Plans (PPK). PPK Warta will enable the collection and investment of savings and will offer insurance protection to employees. A team of internal experts will be responsible for asset management. Warta has over 20 years of experience in managing the products investing funds directly in securities.

Financial result – growing profitability

One of the effects of growing sales is the very good financial results of both Warta companies. The technical result of the property insurance company in 2018 amounted to PLN 380.3 million and was higher than the result achieved in 2017 by almost 23%. A high level compared to the whole market is also maintained by the net financial result, which reached PLN 468.5 million last year (an increase by 43% compared to 2017), which in effect resulted in, among others, a higher ROE compared to the property insurance market.

The life insurance company’s technical result amounted to PLN 52.1 million (increase by 4.4% y/y), and the net profit to PLN 34.4 million, which means an increase by 16.4% compared to 2017.

Warta maintains a high level of security of its clients’ finances, which is confirmed by solvency ratios above the statutory requirements. Warta’s current Standard & Poor’s credit rating remains consistently high at A+ level with a stable outlook. Warta is the only insurer registered in Poland with such a high rating.

Dawid Korszeń
Rzecznik Prasowy
Chmielna 85/87
00-850 Warszawa