36. Activities and objectives in 2023

Based on external and internal developments, activities in 2023 focused on the following:

  • rising inflation
  • sustainability (ESG)
  • security & resilience management

Rising inflation

The global macroeconomy experienced turbulence in 2023 due to a variety of factors such as the conflict between Russia and Ukraine and rising inflation. Central banks such as the European Central Bank (ECB) responded to this situation by raising interest rates. The financial markets reacted sensitively to these interest rate adjustments, and the value of both bonds and equities fell. With regard to UNIQA, inflation had a negative impact on the best estimate reserves in long-term business lines. Rising costs due to inflation and the more attractive alternative investment opportunities increased the lapse risk. Various inflation scenarios were analysed, highlighting potentially significant effects. Effective loss minimisation techniques were developed and implemented. UNIQA adjusted the reserves on a quarterly basis and created special inflation reserves in some regions.

Sustainability (ESG)

In the area of sustainability, UNIQA focused its main objectives on complying with regulatory requirements and further developing risk management activities. For one thing, work was carried out on the development of long-term climate scenarios. Physical and transitory climate risks in the UNIQA Group were analysed. Early identification of sustainability risks and raising awareness of ESG risks in the organisation were other focal points. UNIQA also worked on integrating ESG data into its IT risk analysis software to enable daily monitoring of ESG-related key figures.

Security & resilience management

Companies are increasingly facing a range of security risks, including data theft, ransomware attacks and potential power outages. In 2023, in addition to preventive measures in the areas of information security and physical security, UNIQA placed particular emphasis on preparing for the possible effects of an energy crisis. Action plans have already been developed as part of this focal area and employees have been trained accordingly. In 2023, these action plans were prepared for all of UNIQA’s other operationally important sites internationally. The plans include both preventive and reactive measures to prepare UNIQA in the best possible way for large-scale power outages, announced power outages or brownouts.

Best estimate
Calculation based on the best estimate. This is the probability-weighted average of future cash flows taking into account the expected present value and using the relevant risk-free yield curve.
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