The digital journey in Gjensidige. Sell-side Analyst meeting with Group Management 11 September 2017

Transcription

1 The digital journey in Gjensidige Sell-side Analyst meeting with Group Management 11 September 2017

2 Group management CEO Helge Leiro Baastad CFO Jostein Amdal EVP Claims Sigurd Austin EVP Technology and Development Kaare Østgaard EVP Private Hege Yli Melhus Ask EVP Commercial Mats C. Gottschalk EVP Group Staff and General Services Jørgen Ringdal EVP Nordic Kim Rud Petersen EVP Analytics, Product and Price Catharina Hellerud 2

3 The digital journey in Gjensidige Helge Leiro Baastad, CEO

4 Delivering on financial and operational targets Strong value creation since IPO NOK bn driven by solid growth, underwriting and cost discipline NOK bn Q R12m Q217 Earned premiums Combined Ratio (RHS) Target corridor* 25% 20% 15% 10% Equity base Cumulative dividend payments Annualised ROE (RHS) *Long-term target corridor assumes 0pp run-off and and normalised large losses 100% 95% 90% 85% 80% 75% Key performance indicators status** KPIs Target 2018 Status 1H17 Customer satisfaction 77.0 Claims reported online >50% Claims handling cost per claim Claims handled within 24 hours Claims cost reductions -10% >80% NOK 4-500m Digital customers 75% Delivered 77.4 Delivered 58% Delivered -17% Delivered 82% Delivered NOK 480m On track 67% Customer retention Maintain high Maintained Customers with >4 GI products Maintain ** Targets communicated at Capital Markets Day 25 November Maintained 4

5 On track to improve profitability outside Norway Inflection point from 2017 to 2018 Further measures taken in the Nordic segment more to come Maintain strong position and competitiveness in Norway Improve profitability in Denmark Profitable from and including 2018 in Sweden and the Baltics Integration of acquired companies, conversion to Gjensidige tariffs Denmark - New dynamic pricing from 1 May Improvements in private motor and property tariffs from 1 July Moving existing customers to modernised tariffs and terms - New tariffs commercial property Q417 and workers comp Q118 Sweden - Re-underwriting commercial customers - New customer scoring model for improved risk-selection and -pricing in pipeline 5

6 Digitalisation and innovation high on the strategic agenda Ambitions Prerequisites Key operational strategic priorities A true pan-nordic insurance company Cost efficiency to make room for investments in technology, brand and skills Koncernen har været noteret på Oslo Børs siden I snart 200 år har vi ans at ildsjæle, som arbejder for at sikre kunde rnes liv, helbred og værdier. Gjensidige Forsikring Vi er circa medarbejde re, heraf 495 i Danma rk, og vi tilbyder skade forsikring i Norge, Danma rk, Sverige og Baltikum. The best online customer experiences in the Nordic general insurance market Strong position in a growth market for personal and health insurance Increased growth and pursuit of new areas where Gjensidige can take a role as risk player Analytical use of data to ensure attractive value propositions and profitable operations The most customeroriented general insurance company in the Nordic region Strategic partnerships Developing a modern, flexible and scalable IT infrastructure Business-driven development of people and organisation 6

7 Strong leadership key to succeeding with the digital agenda Culture Leadership Competence Governance 7

8 The digital journey in Gjensidige - opportunities, innovation and investments Kaare Østgaard, EVP Technology and Development Koncernen har været noteret på Oslo Børs siden I snart 200 år har vi ans at ildsjæle, som arbejder for at sikre kunde rnes liv, helbred og værdier. Gjensidige Forsikring Vi er circa medarbejde re, heraf 495 i Danma rk, og vi tilbyder skade forsikring i Norge, Danma rk, Sverige og Baltikum.

9 New technology provides opportunities scale increasingly important Attract and develop skills Strategic investments Preferred partner 9

10 Three key areas of investments Further develop omni-channel distribution Automation and improving efficiency Skills and analytical capabilities Self-service Advanced analytical CRM for increased relevance Third party solutions Robotics, artificial intelligence (AI) process identified to be automated Evaluating new core system Data driven Further improving tariffs Improved risk- and customer selection New products and services 10

11 Increased focus on innovation in Gjensidige Market watch Monitor changes in the market, international and local Technology vendors Cooperation with different Fin-tech players Test and trial Initiation of innovation projects to test and learn Pay as you drive Housing services Personal wellness Business Value Innovation on high-value processes that gives tangible business results Robotics Image recognition Artificial intelligence 11

12 The digital journey in Gjensidige - from the claims side Sigurd Austin, EVP Claims

13 80/80 ambition for improving claims handling Industrialisation, automation Expertise and experience # claims 80% Self-service 20% Call center # claims 80% Automated 20% Manually 64% solved digital 36% solved manually Targets and status June 2017 Customer satisfaction The industry s best CSI Des 2016: 85 (up from 81 in 2015) Efficiency Improve internal efficiency 10% 17% - realised Potential of further 3% by 2020 Claims payments Reduce NOK m Realised NOK 480m Increase employee commitment Increased to 75 pp 13

14 From customer to high-performance user CUSTOMER Buys and change their policies Low-frequency relations with Gjensidige «HIGH-PERFORMANCE»- USER Need Gjensidige s support to become increasingly efficient USER Use their insurance in a high-frequency interaction with Gjensidige

15 Create a digital highway - reducing the number of requests to service channels BEFORE INCIDENT INITIAL CONTACT STATUS UPDATE AFTER «Everything is fine» «Everything is fine» Agents Suppliers SATISFIED CUSTOMER Buys and alter their insurance low-frequency interaction with Gjensidige Partners Sales Assessors Social media Fax Mail SMS Chat Call-centres gjensidige.no Logged-in pages Mobile USER Use their insurance high-frequency interaction with Gjensidige My claim online «What do I do?» «When is it handled?» «I know what to do, what Gjensidige does, and am experiencing they are taking care of the claim»

16 The digital claims journey in Gjensidige Claim score Automation 80% Customer journey 80% Green 20% Red Service guarantee Robot Phone/ call-centre Partners Sales force Agents Self-service solutions Gjensidige in the pocket (mobile first) Manual handling 20% 16

17 A set of business rules in a rule engine provides a unique claims score Process guide Calculator Fraud filter Estimate: Pay-out Refusal Soft Fraud Amount Liability 17

18 Delivering the Gjensidige experience through all digital channels 4 guiding principles of the Gjensidige experience: We keep our We always We make what is We ensure the promises deliver quality difficult easy customer is satisfied Principles for digitalisation in claims Predictability Mastering Progress Safety Personal 18

19 Digital solutions in harmony with behavioural economics Targeted and scientific approach to behaviour economics Inspired by the Behaviour Insight Team, UK 32 different behavioural principles Priming effect «The use of different stimuli to encourage positive behaviour» Consistency and commitment «By making people commit, there s a better chance that they will comply with their intentions» Descriptive norm «Point the customer in a specific direction by telling what others usually do» Supervision «If there s a chance that people are dishonest, give them a feeling of being watched» 19

20 Detailed content in voice-messages and SMS - an easy entrance to our digital solutions Customer inquiries Alternative 1 New claim: Re-directed to online solutions and mobile in IVR menu When hanging up you receive a SMS with link to the online solution Alternative 2 directed to claims centre Hi IVR-menu You just called us to file a claim. The fastest way to do so is: Is your inquiry to file a new claim press 1 Example: Is your inquiry in regards to property and content, mobile or pet press 4 We would ask you to please file the claim via gjensidige.no or our app. It is easy for you and enables us to handle the claim even faster. Is the situation acute? Press 2, and you will be re-directed to speak with one in our claims team Hang up Press 2 Online: App store: Google Play: There you can track you claims, upload documents or write to us if you have any questions or new information Kind regards, Gjensidige 20

21 Live testing of re-directing customers to online solutions provides valuable insights Percentage of customers who have hanged up after the initial voice message % 100 Pilot period 1 Customer inquiries Pilot period Time Reduced time between messages Changed the voice-message to a less strict version, suggesting you may speak to someone although the situation is not acute Source: Telia CallGuide 21

22 More satisfied customers when reporting claims online Three main effects from digitalisation Real customer orientation - Time and information is key Efficiency gains Lower claims pay-outs - Robots and prioritising repairs, e.g. smart repair More satisfied customers when reporting claims online 65% 60% 55% 50% 45% 40% % 80 30% 79 Claims Reported Online, Private Norway - 6 months moving average Claims Customer Satisfaction Index - 6 months moving average (RHS)

23 Appendix

24 Robotics in Gjensidige processes identified for automation Examples Invoice processing Web forms from customers Communication with other industry systems Payments to suppliers - Claims Notice of termination DMR Registration and resigning cars Remuneration to assessors - Claims Claim forms in Sweden TFF Cancellation of insurance 24

25 Intelligent solutions in Gjensidige - much more potential going forward Examples Chat-bot Other Chat-bot Image recognition Content analysis Speech into text Chat-bot Claims assessments Sort/ categorise s Content analysis in calls Currently testing a simple chat-bot to respond to general customer inquires In the pipeline is testing a personified chat-bot which can perform actions on behalf of the customers Assessment of damage using one picture. Estimating repair costs based on the picture the customer uploads Launched via app Automated analysis of content in s and forms to route the inquiry to the correct recipient To transport speech into text. To analyse conversations Potentially implement a virtual customer centre 25

26 Koncernen har været noteret på Oslo Børs siden I snart 200 år har vi ans at ildsjæle, som arbejder for at sikre kunde rnes liv, helbred og værdier. Gjensidige Forsikring Vi er circa medarbejde re, heraf 495 i Danma rk, og vi tilbyder skade forsikring i Norge, Danma rk, Sverige og Baltikum. TODAY Recent digitalisation and innovation in Gjensidige Examples past 12 months October 2016 New app in cooperation with the Norwegian Skiassociation Min ski January 2017 Assessment robot Motor December 2016 App solution for claim filing prototype Motor - single accidents Autumn 2016 Invoice processing robotised March 2017 Dinside.dk improvements - automatic payments February 2017 Omni-channel distribution April 2017 Service leaflet for Property follow-up and maintenance April 2017 New app Gouda for claims filing pan-nordic May 2017 Image recognition in Motor claims app May 2017 New online features and solutions through partners June 2017 Smart Health - app Iver prototype June 2017 Automatic health assessment July 2017 Travel claims handled in 1.6 second applied for Guinness World Records Examples from the pipeline Robotisation/ automation - ~20% of identified potential realised so far, much more to come Further improving CRM and web shop Electronic healthcare declaration Nudging to reduce fraud or increase online conversion Image recognition claim form, September 2017 Continuously improving web shop 26

27 TODAY Recent product launches and pricing measures Examples products launched past 12 months October 2016 Cyber insurance, Norway December 2016 Accident, Denmark September 2016 Health product package Enkelt Liv especially relevant for sole proprietorship, Norway January 2017 Change of ownership apartments, Denmark January 2017 Mobile insurance, glass coverage, included in content insurance, Norway January 2017 Electronic insurance of the home, Denmark Significant pricing measures past 12 months March 2017 Cyber insurance, Denmark May 2017 Child insurance, Sweden May 2017 Healthcare insurance (Mølholm), Denmark 2H 2016 Motor pricing measures to compensate for increased expected claims inflation, Norway June 2017 Cyber insurance, Sweden August 2017 Nabobil (car sharing), Norway June 2017 Pet insurance, Denmark June 2017 Mobile insurance, Norway August 2017 Change of ownership, Sweden 1H 2017 Denmark: Change in terms to allow for more dynamic pricing, additional price measures, portfolio clean up Sweden: Additional price measures, tightened risk selection - private property, continued re-underwriting - commercial property, converting Vardia s motor portfolio to Gjensidige s tariffs Examples from the pipeline New products Denmark - Updated healthcare insurance New products Sweden - Change of ownership apartments New products Norway - Doctor online included in health care insurance for commercial customers New tariffs Denmark - Private property - Commercial property and content - Workers compensation New tariffs Sweden - Private property New tariffs Norway - Private Motor Continuous improvements in products and tariffs 27

28 Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company ). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligations to update or correct any of the information set out herein. These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company s financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act. This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages. In addition to the financial statements according to IFRS, Gjensidige uses different alternative performance measures (APM) to present the business in a more relevant way for its different stakeholders. The alternative performance measures have been used consistent over time, and relevant definitions have been disclosed in the quarterly reports. Comparable figures are provided for all alternative performance measures in the quarterly reports. 28

29 29 Investor relations Janne Flessum Head of Investor relations, M&A and Capital management Mobile: Katharina H. Hesbø Investor relations officer Mobile: Address: Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway