the digital mutual - icmif
TRANSCRIPT
15 April 2020, 3pm BST
The Digital Mutual
#ICMIFwebinar
Episode 6,
HUK-COBURG (Germany)
International Cooperative and Mutual Insurance Federation
Detlef FrankBoard Member, HUK24
Moderator: Ben Telfer, Vice-President, Business Intelligence, ICMIF
@ICMIF_Web [email protected]
#ICMIFwebinar
The Digital Mutual: HUK-COBURG (Germany)
Detlef Frank
Member of the Executive Board, HUK24
International Cooperative and Mutual Insurance
Federation (ICMIF)
The digital mutual:
HUK-COBURG and HUK24
1. HUK24 – Facts & Figures
2. HUK24 – Vision and Guidelines
3. HUK-COBURG Group – Digital Transformation
Agenda
In Germany, 15% of new motor, property and casualty insurance
policies are already signed directly
1 property/accident/liability/motor/legal expenses insurance
2 including comparison platforms
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2013 2014 2015 2016 2017 2018
Market shares in new policies1
insurance agents working for one insurance company insurance agents working for several insurance companies Financial institutions Direct sale2 Others2
11.7%
15.0%15.0%13.9%13.6%12.1%
HUK24 is a risk carrier for motor, liability/accident/property and legal
expenses insurances
Motor insurance
Passenger cars
Motorbikes
Motor homes
Vans
Trailers
Liability/Accident/
Property insurance
Personal liability insurance
Household insurance
Accident insurance
Residential building insurance
Glass insurance
Legal expenses insurance
Personal, professional and motor legal
expenses insurance
Motor legal expenses insurance
Only acting as
intermediary for HUK-
COBURG for health and
life insurance policies
HUK24 uses overheads and therefore synergies within the group
Online Support(140 empl.)
HUK-COBURG
Actuarial IT Claims Motor
……………………………………………………………………………………….……………………………………………………………………………………….……………………………………………………………………………………….
Expert Team(14 empl.)
………………………………………………………
etc.
Our position as online-only insurer is unique
Service insurers
German direct insurers (e. g.)
Online insurer
At home service
✓ X X
Network of branch
Offices✓ X X
Telephone support
✓ ✓ X
Online
(self-)service✓ ✓ ✓
Personal
support in
the event of a claim ✓ ✓* ✓
* support only via telephone, not in a branch office or similar
Customer satisfaction with HUK24 is highest rated among direct
insurers - even without telephone support
2.26
2.30
2.34
2.392.41 2.41 2.42 2.43
2.45 2.462.48 2.48 2.49 2.50 2.50 2.51 2.51 2.51 2.52 2.52 2.53 2.53 2.54 2.54 2.54
Customer satisfaction (Top 25 insurers)
Source: Servicevalue: “Deutschlands Lieblinge”; insurers and direct insurers, 2020
Direct insurer
best
worst
Today, we are by far Germany’s largest direct insurer
860
349323
296 287
193151
11987 85
27
0
100
200
300
400
500
600
700
800
900
1,000
MIL
LIO
NS
(EuropaGo)
Gross premiums written (life and health insurance excluded) of Germany’s largest direct insurers in 2018 in EUR million
... and Top 8 among all motor insurers with far more than 2 million
insured cars
Source: Farny Zahlenband 2018, Market shares by motor third party liability (MTPL) insurance policies
3.50%
0%
2%
4%
6%
8%
10%
12%
14%
16%
HUK-COBURG Allianz LVM VHV AXA R+V DEVK HUK24 Württemberg. AachenMünchener
Market shares of the top 10 motor insurers as at 31/12/2018 (insurance policies)
We are price leader in motor insurance – because we are cost leader
0% 5% 10% 15% 20% 25% 30% 35% 40%
HDI
Württembergische
R+V Allg.
Allianz
AXA
LVM
DEVK Allg.
DA Direkt
Verti
VHV Allg.
AllSecur
CosmosDirekt
Europa
WGV
HUK-COBURG
R+V24
HUK-COBURG Allg.
HUK24Expense ratio of the 10 largest motor
insurers and the largest direct insurers
Source: KIVI GmbH, Expense ratios: sum of all gross operating expenses / gross premiums earned, overall business, 2018
Overall, we are growing strongly and profitably
Trends in HUK24’s
annual profit (after
tax)in EUR million
Trends in the
HUK24 portfolioin million policies
-20
0
20
40
60
2012 13 14 15 16 17 18 forecast
2019
+7.5%
annually legal expenses
insurance
liability/
accident/
property
insurance
motor
insurance0
4
3
2
1
Digital growth
Market share
Established
direct
insurers
New
players Traditional
insurers
But our competitive position is under attack
1. HUK24 – Facts & Figures
2. HUK24 – Vision and Guidelines
3. HUK-COBURG Group – Digital Transformation
Agenda
Our vision 2025
Digital individual
insurance machine that
generates the highest
number of online(-only)
insurance policies in
the German market
Guidelines to implement this vision
Vision
Digital individual insurance
machine that generates the
highest number of
online(-only) insurance
policies in the
German market
direct
simple
e-commerce
oriented
KPI-basedscalable
no
commission
fees
automated
Simple: Segment-specific approach simplifies the search for
information and products
Simple: Simplified user experience with quick quote and
application processes
… and an easy to understand offer (developed through KPI
based optimization)
Direct: We do not cooperate with comparison platforms or other
intermediaries and pay no commissions
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2012 2013 2014 2015 2016 2017 2018 2019
Kfz Kfz Aggregatoren PH HR GL WG Unfall RS
cooperating with comparison platforms not cooperating with comparison platforms
motor
insurance*:
+62%
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
motor
insurance
motor insurance
through
cooperation with
comparison
platforms
personal
liability
insurance
household
insurance
glass
insurance
residential
building
insurance
accident
insurance
legal
expenses
insurance
* new business, first half of the year including turn-of-the-year-business
Fu
nn
el m
oto
r in
su
ran
ce
Dec
‘1
91
Accesses of
premium
calculatorQuotes
Sales
35,802
Website
KPI-based: Data is the basis for controlling our online success.
Consistent thinking along the Website-Funnel is key
1,540,944
Visit Product
Site
310,367 207,464 176,234
CtL:
80,6%
CtO:
17,3%
VtA
66,8%
1) Visits using product site before entering premium calculator, not included: visits entering from other sites, e.g. customer portal
Scalable: Our distribution strategy focuses on scalable products
such as household insurance
19,969
27,674
33,121
36,756
43,095
2015 2016 2017 2018 2019
New business household insurance
+116%
19,969
27,674
33,121
36,756
43,095
Automated: Full automation of key processes is decisive
51 52 51 52 51 52 54 55
0
20
40
60
80
100
Full automatically processed household-applications in %
77 78 7874 76
83 83 81
0
20
40
60
80
100
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
target range
target range
Automated: Digital Assistant supports customers automatically
… and can already help in many cases
Electronic
insurance
confirmation
Login
problemsPhone PIN Certificates
RelocationTemporary
plate
Accident and
breakdown
cover
Discount
Secondary car Termination
Change of
insurerNew car
Liability
Submission of
documents
Forward to
customer
service
General
answers
How can I help you?
E-commerce oriented: Our website is not modelled on other
insurers’ websites but on the websites of top online brands
1. HUK24 – Facts & Figures
2. HUK24 – Vision and Guidelines
3. HUK-COBURG Group – Digital Transformation
Agenda
One digital motor for the HUK-COBURG group
Digital 2.0 Digital First Adaption Ambition
Ambition
▪ Adaptable, future-proof platform with a common vision for the group
▪ Focusing on the HUK24 business model, digital innovations are developed, tested and implemented
▪ Principle: Develop once, use multiple times in the group - adapting to the respective business
models or channel requirements
Digital motor as basis for excellent customer journeys
Data Automatic and KPI-based optimisation and personalisation
Tools Web-Tools for personalised content
IT-Architecture Flexible APIs & dynamic frontends
Collaboration Agile, cross-functional teams
IT-Processes Continous delivery
HUK24 as digital pilot…
…for a common digital motor in the HUK-COBURG group
Takeaways
1.Online only + direct only
2.Keeping things simple for the
customer
3.Data-based optimisation and
personalisation
4.Consistent online oriented
way of thinking “along the
funnel”
5.Digital speedboat as pilot for
group digitalisation
International Cooperative and Mutual Insurance Federation
Detlef FrankBoard Member, HUK24
Moderator: Ben Telfer, Vice-President, Business Intelligence, ICMIF
@ICMIF_Web [email protected]
#ICMIFwebinar
The Digital Mutual: HUK-COBURG (Germany)
www.icmif.org/digital-mutual
International Cooperative and Mutual Insurance Federation#ICMIFwebinar
The Digital Mutual webinar series
Episode 6, HUK-Coburg (Germany)Episode 5, LB Group (Denmark)Episode 4, Securian Financial (USA)Episode 3, P&V (Belgium)Episode 2, The Co-operators (Canada)Episode 1, Seguros Unimed (Brazil)
Next episode, 30 June 2020San Cristóbal Seguros (Argentina)
www.icmif.org/icmif-webinars
International Cooperative and Mutual Insurance Federation#ICMIFwebinar
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