On the basis of numerous initiatives in product development, customer loyalty and efficiency improvement, UNIQA expects very solid developments in the area of property and casualty insurance once again in 2010.
The growth of the legal expenses insurance line also proved favourable in 2009. The financial crisis had an effect here in terms of increased mass loss claims submitted in the area of asset investment. In view of this development and the current legal situation (free selection of lawyer for mass damages), the risk exclusion policy for the majority of these dangers has proven to be an effective and correct countermeasure.
The goal for the year 2010 in the area of legal expenses insurance is continued high-return growth. Refined scoring models offer new opportunities here to structure the premiums flexibly and in line with risks. Another key area involves a planned increase in the assignment of claims to specialised lawyers in order to achieve a higher success rate and thereby greater customer satisfaction. In the future, claims will be processed more quickly, more simply and with greater legal security thanks to the planned introduction in 2010 of a new, electronically supported communication channel between lawyers and legal expenses insurers that was initiated by the UNIQA Group as an innovative measure. The goal of the new lawyers’ portal is improved efficiency in the processing methods and an associated general increase in productivity.
Unfortunately, no relief is in sight for loss ratio in the storm risk segment. Countermeasures, such as rate segmentation by region, have already been introduced, and the Group will continue to follow the course charted already in 2008. We will also continue to expand the HORA system (Austrian Flood Risk Zoning System) in coming years in cooperation with the Insurance Association of Austria and the Ministry of Agriculture, Forestry, Environment and Water Management. The goal of this system is to create and refine a risk map that makes it possible to better assess possible natural dangers. In the area of natural dangers as well as other risk areas, such as burglary, UNIQA relies on various preventive measures to avoid losses. Examples of this can be found in the severe weather warnings offered by UNIQA as an exclusive service within the insurance industry as well as security checks for corporate customers and the pilot project “NummerSicher” for private customers.
The severe weather warnings offered by UNIQA since 2004 in Austria have already been successfully implemented in Poland, Romania, the Czech Republic and Hungary and should be introduced in additional countries in 2010. The trend toward a high number of break-ins throughout Austria predicted again by experts for 2010 is being met by UNQA with a “security offensive” that includes providing comprehensive information to customers about security and prevention.
In other areas, a subdued investment level is expected in property insurance, particularly among commercial customers. In order to continue to support the customers in this difficult phase, the strategy of complexity reduction and efficiency improvement – above all by offering standardised customer-oriented products – will be sustained. Increased productivity in sales, efficiency gains and process streamlining have already been successfully implemented in the private customer business. In 2010, the operational area should become an additional focus in this regard.
Further refinements in the private customer business will be seen in 2010 as well. For instance, additional security features are being integrated into the new private customer product introduced to the market in 2009. The goal of these models is an individual and risk-appropriate premium definition, in which we will naturally continue to pursue the goal of climate protection in accordance with the course already set jointly by Raiffeisen Versicherung and UNIQA. The features already present here in the current product will be carried over and further expanded.
A difficult market environment is expected in 2010 for motor vehicle insurance, as is also the case for the Austrian automobile market. Fewer new car sales compared with 2009 and the continuing trend toward the purchase of smaller, lower-performance models decreases the new customer potential as well as the average insurance premiums.
UNIQA is responding to this with a renewed focus on incomparable, unique products like driver protection and the innovative UNIQA SafeLine package, in particular. The impressive success of this offer in the year 2009 leaves continued dynamic developments to be expected, especially since SafeLine contributes uniquely to improving customer loyalty with its safety features. The CarFinder function of SafeLine, for instance, is the best option for relocating vehicles in today’s age of increased car thefts. This was confirmed in 2009 with a success rate of 100%.
Here as well, a focus is being placed on climate protection in the further development of the products. For the first time, UNIQA will offer insurance coverage for electric bicycles and Segways, and the Group will continue to offer premium advantages as incentives for customers who use more public transportation in addition to their cars. SafeLine is also a leader among motor vehicle insurance policies in the area of climate protection with its flexible environmental bonus for people who do little driving.
In 2010, UNIQA intends to honour the slogan “The insurance of a new generation” in the processing of motor vehicle claims as well. It will be possible for customers to easily report motor vehicle damage to UNIQA using an iPhone or BlackBerry. Not only can the correct location be determined by GPS, photos of the damage and the accident site are also easy to submit. This reduces the effort required of the customer while also simplifying and accelerating completion of the process. All of these new developments are also intended for the other Group companies as well. For example, the driver protection has already been put to use in Raiffeisen Versicherung and SafeLine in Hungary.
In the area of company liability insurance, the activities are focused on technical implementation of environmental cleanup costs insurance. Just shortly after the new statutory provisions entered into effect in summer of 2009, UNIQA provided this insurance protection to its customers, once again proving the Group’s market leadership in this segment. A supplementary module for eHORA, developed in cooperation with the Austrian Insurance Association and the Austrian Ministry of Agriculture, Forestry, Environment and Water Management has also been available since February 2010 for risk assessment by allowing precise risk assessment for specific locations with regard to the categories of soil/water and biodiversity.
Particular importance continues to be given to providing technical insurance-related support to large, internationally active customers. For this reason, UNIQA has established an international key account management system in order to quickly and efficiently serve customers with cross-border insurance needs within the framework of an international programme.
UNIQA will address the continuing price pressure with targeted product innovations. In addition to continuation of the already familiar risk management measures, such as the Legionella precautions at hospitals or the cableway weather information system, additional product innovations were introduced and developed, like all-risk machine breakdown insurance and all-risk electronics insurance. A combination of multiple insurance lines – liability, technical insurance policies and transport – into a custom-tailored product for installation projects is also being developed.
A new premium package should promote sales in the area of business interruption insurance for freelancers in 2010. One particular highlight is the termination protection with which UNIQA foregoes its right of termination for the entire contract term in exchange for a higher premium. This addresses the security needs of the customers even better than before. Premium reimbursement in the absence of claims is automatically included.
Starting in the second half of 2010, UNIQA will also introduce a new accident rate structure that should make the offered product elements even more customer-friendly. The scope of benefits is being expanded for the key element of casualty insurance, “permanent invalidity”. A significantly higher progression than before should offer customers more benefits in event of severe injury consequences. In 2010, it will also be possible for the first time in the UNIQA Group to conclude the purchase of a casualty insurance product online. As of mid-January, the sales partner ÖAMTC will offer a casualty insurance product from CALL DIRECT Versicherung AG, the direct insurer of the UNIQA Group Austria, at www.oeamtc.at.
In Eastern and South Eastern Europe as well, innovative, customer-oriented products were introduced as part of a modular system and premiums were differentiated on a risk-specific basis through scoring.
