The UNIQA Group offers a comprehensive range of classic index-linked and unit-linked life insurance products. As part of the independent sales, the unit-linked life insurance products are also being offered in Germany and Slovenia in their respective, country-specific versions.
In Austria, UNIQA was able to further strengthen its leadership in the area of unit-linked and index-linked life insurance in 2010. Partly responsible for this was UNIQA's flagship "FlexSolution" and "My flexible life insurance" offered by Raiffeisen Versicherung, as well as the continuously successful index-linked life insurance including "Inflationsschutz & RZB Kapitalinvest" (hedge against inflation & RZB capital investment). The provision solutions available so far in these categories have enjoyed a positive reception among the customers, reaffirming UNIQA’s strategy of offering customers products that they can individually adapt to their current life circumstances. In 2011, this individualisation will be expanded in FlexSolution to clearly and attractively present customers with the numerous options.
Government-subsidised future pension provisions will also be reorganised in 2011. The proven expansions of guaranteed capital, guaranteed lifelong pension and other well-received product features will continue unchanged. In addition, two new tariffs were developed for 2011 in which the first guarantee date begins after 10 or 15 years as opposed to upon the expiration of the policy. Investment will follow a new CPPI model with a volatility target strategy in which the costs of the investment and guarantee can be kept low while the investment can be pursued aggressively even in turbulent capital markets. The successful cooperation with Austria’s largest investment company is being continued in its proven form.
Despite the difficult environment arising from the low rate of interest, innovative solutions are being pursued in index-linked life insurance in 2011 as well. The new regulations pertaining to single premiums (4% insurance tax starting at a minimum term of 15 years) that took effect on 1 January 2011 did not pose any hindrance; since the beginning of January 2011, the first single premium tranche of FINANCE LIFE has been available which factors in the new criteria. The topic of security has gained new importance to customers, especially in recent years. Against this background, both classic and capital investment oriented life insurance products are enjoying great popularity. The changes to the actuarial interest rate effective 1 April 2011 will also have consequences on product features. In light of this regulation, UNIQA is reviewing the rates of classic and capital investment based life insurance and will revise them as needed.
With classic life insurance, the primary focus will remain on burial cost insurance which was successfully launched over the last two years. In this sensitive area, a certain amount of awareness has been generated which will be continuously developed in 2011. Additional focus will remain on occupational disability pension for which additional marketing will be required despite a high level of awareness. The children's product will be redesigned in 2011.
Unanticipated events such as accidents or illness can pose serious challenges to personal financial security. The new bank insurance product, “My Raiffeisen Account protection” offered by Raiffeisen Versicherung, provides the security of covering a negative account balance of the insured party up to €5,000 quickly and without red tape in the event of death. This can relieve surviving dependents of at least one financial worry and burden in an emotionally difficult time. In addition, the product is also appropriate for retirement savings with attractive premiums.
In autumn 2010 a new tariff was set up offering payment protection insurance for loans which UNIQA will continue to promote in 2011. This offer also helps to ensure that customers and their surviving dependents do not encounter financial difficulties owing to unforeseen circumstances. The advantage of the new loan protection is the comprehensive hedging of debt in case of death, unemployment or inability to work. Multiple cases of unemployment and multiple cases of inability to work are also covered in order to meet the needs of the customers.
The intensified cooperation between UNIQA and the Raiffeisen bank group in establishing and expanding bank sales in Central and Eastern Europe will continue in 2011. The Preferred Partnership with Raiffeisen encompasses the markets of Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Romania, Bulgaria, the Ukraine, Albania, Kosovo and Russia. The joint product portfolio continues to focus on tailor-made, combined banking and insurance packages as well as stand-alone products, in particular capital-forming life insurance products (endowment policies and unit-linked life insurance). Further aspects of cooperation include the successive expansion of the product portfolio and the gradual introduction of additional stand-alone products for casualty and health insurance in selected markets.
The renewed increase in financing volumes in the year 2010 has led to an increase in the scope of business, which was additionally supported by the introduction of new products. Special attention was paid here to selling stand-alone insurance products. Almost 18,000 new capital-forming life insurance policies with recurring premium payments in a total of nine markets could be concluded in this way. Around 60% of these policies are endowment insurance, with 40% unit-linked life insurance. The introduction of stand-alone products in additional markets is currently being prepared for 2011. Another focus lies on developing synergies by sharing the use of sales channels.
In addition, the cooperation with the Veneto Banca Group in Italy primarily in the area of single-premium life insurance has been a very positive stimulus for UNIQA and was put onto a long-term basis with the new cooperation agreement concluded at the end of 2009.
Outside of Europe, UNIQA founded in 2008 the life and health insurance company Takaful Al-Emarat based in Dubai and is currently developing it as a joint venture with the insurance company Al Buhaira. Takaful has offered life and health insurance for groups since 2009, and is planning individual tariffs for classic and unit-linked life insurance products starting in April 2011. The portfolio is made up exclusively of Takaful products and thus insurance products that conform with current Sharia rules and are also meeting with increased interest in Europe. Starting with Dubai and the United Arab Emirates, business activities will be expanded over the long term to include additional Gulf and Muslim states.
In the area of money laundering prevention, the precise random sampling check was optimised in 2010 based on an IT-supported, risk-oriented monitoring system in Austria. The international Group standards could be implemented for the most part throughout the entire UNIQA Group by the end of 2010. The standards include internal regulations, pertinent training modules, transaction and customer monitoring as well as intensified auditing and reporting. As planned for 2010, the creation of risk profiles for all companies of the UNIQA Group was essentially completed. In Austria, the risk-oriented categorisation of the customer base and the increased use of joint IT solutions were also refined. Substantial improvements could be made in several IT systems, primarily for managing electronic applications.
International projects planned for 2011 include the transition from the implementation phase to making the UNIQA standard a matter of course, and also the continued expansion of IT support.
