Presentation Direct Division. Rob Hillebrand - chairman OHRA December 8, 2000

Transcription

1 Presentation Direct Division Rob Hillebrand - chairman OHRA December 8,

2 Agenda! Direct writing: a definition! Key figures OHRA! OHRA strategy! E-commerce strategy 2

3 Direct writing: a definition Selling insurance & financial services through:! Direct mailing! Telephone (call centre)! Speech recognition software! Internet 3

4 Market of Direct Writers Premium income Life Insurance market vs. share Direct Writers (1999 in billion ) % Share Direct Writers (13%) Note: 1 = NLG

5 Market of Direct Writers Premium income Life Insurance market - share Direct Writers (1999 in billion ) % Share OHRA (6%) Note: 1 = NLG

6 Market of Direct Writers Premium income general insurance market vs. share Direct Writers (1999 in billion ) 9.4 9,4 93% Share Direct Writers (7%) Note: 1 = NLG

7 Market of Direct Writers Premium income general insurance market - share Direct Writers (1999 in billion ) % Share OHRA (14%) Note: 1 = NLG

8 Market of Direct Writers Premium income Health insurance market vs. share Direct Writers (1999 in billion ) % Share Direct Writers (33%) Note: 1 = NLG

9 Market of Direct Writers Premium income Health insurance market - share Direct Writers (1999 in billion ) % Share OHRA (6%) Note: 1 = NLG

10 Development of OHRA s Share in total market! OHRA ranks no. 2 in Direct Writing market Life 0,5% 0,6% 0,6% 0,7% 0,7% G.I. 0,5% 0,5% 0,5% 0,6% 0,6% Private Health 7,2% 7,3% 6,8% 7,1% 6,3% Public Health 0,4% 0,5% 0,6% 0,6% 0,7% Health Total 2,8% 2,9% 2,7% 2,7% 2,7%! Growth in life! Market share Private Health portfolio falls! More selectivity in private health to improve results 10

11 Key figures OHRA Premium income (in million ) Sep Note: 1 = NLG 3.60 Health G.I. Life & pensions 11

12 Key figures OHRA Results before tax (in million ) Sep Note: 1 = NLG Health G.I. Life & Pensions 12

13 Key figures OHRA Equity (in million )! Showing good progress! Financial strength! Solvency Note: 1 = NLG Sep Dutch GAAP 13

14 Key figures OHRA Number of direct writing clients! Above 20,000 income! Financially active! Average no. of policies 3 per client Sep

15 Growth OHRA funds In million euro until 30 september reasons to call your bank now! 42% Euronext (Dutch Stock Market) OHRA Life/Pension OHRA Bank Spin-off 12% 20% % 38% 58% 0 15 okt-92 feb-93 jun-93 okt-93 feb-94 jun-94 okt-94 feb-95 jun-95 okt-95 feb-96 jun-96 okt-96 feb-97 jun-97 okt-97 feb-98 jun-98 okt-98 feb-99 jun-99 okt-99 feb-00 jun-00

16 Major drivers of change Direct Writers Consumer Technology Market activity Ageing Individualisation Emancipation Increasing income Internet technology CRM New tax plan Transparency pressure on pricing Social Security & privatisation Health Segment Intermediary 60% 55% Bank 16% 21% Direct writing 20% 18% Internet 4% 6% 16

17 The need for change External factors Internal factors DLNO merger! Focus - On E - Products/clients! Profitability OHRA online 17

18 Mission OHRA online: the state-of-the-art and flexible Internet insurer, with a selected quality product portfolio, an appropriate service and supported by competitive pricing 18

19 OHRA strategy! Clear positioning of OHRA within DLNO group! E-commerce: all e-! Non profit profit! Cost leadership! Culture change! One brand 19

20 The programme of change: implementation June 1, 2001 E-commerce Direct H L G.I. B Inv. Cost reduction & synergy key priorities Business Process Redesign Investing in E-commerce Reduction product portfolio Improving existing DM campaigns Reorganisation of the business lines Programme of cultural change 20

21 Cost reduction key priority! Business Process Redesign with the same service level: reduction of 200 FTE s! Closing of OHRA shops! Transfer of OHRA s Public Health department to Nuts, The Hague! Integration of OHRA s and Delta Lloyd s G.I. back offices! Total savings: in excess of 10 million per annum by

22 Investing in E-commerce - I Categories suitable for E-commerce High Fit with interactive media Low Low News Selected groceries Convenience stores Gasoline Software Interactive games Sporting goods Insurance Music Books Real estate brokerage Toys High-end apparel White goods Fine jewellery Potential for relationship building Cars Financial services Travel services Medical services Consumers electronics Baby products High 22

23 Investing in E-commerce - II The Internet s Role in Retail Insurance and Service Approximately 15.8 million online banking or online investing household in the U.S. shopped for insurance in the last year 7 Annuities 31 % use the Internet for insurance shopping Percent shopping online by product 31 Life 18 Medical 53 Homeowners/renters 87 Car 23

24 Investing in E-commerce - III E-commerce strategy OHRA! Initial investment of 15 million in E-commerce (over 3 years)! Main products interactive on the Internet! Web & traditional advertising strategy! Customer value by content and functionality! Strategic partnerships for building customer relationships and offering content! OHRA becomes an important player on the Internet 24

25 Focusing product portfolio! Simplification of health portfolio: from 24 to 9 products! Traditional pension schemes to be managed by Delta Lloyd! Focus of life portfolio on investment policies and term risk! G.I. focus on home & motor insurances 25

26 Improving existing DM campaigns Leverage data-mining to reduce insanity!! Analyse effectiveness of cross selling! Improving effectiveness phone & mail campaigns! Upgrading of OHRA Knowledge Centre 26

27 Business line will change the structure E-commerce Direct H L G.I. B Inv.! E-commerce infrastructure! Decentralised exploitation! Three layer management structure (from five) 27

28 Programme of cultural change! Focus on awareness of costs! Explain change in strategy by extensive internal communication programme! Task oriented Results oriented! Introduction of team based working! Ongoing management assessment 28

29 29

30 30

31 Example: Single premium campaign via the Internet Period: 6 March 6 December 2000 Production: 1,830 policies Average per day: 9 policies Preferred time of the day: 70 % after P.M. Turnover: Pnds. St. 4,860,000 Average amount per policy: Pnds. St. 2,655 Average age: 41.3 year Percentage (%) man/woman: 80/20 Percentage (%) new/existing: 45/55 Assets: provision income 250,000 cost price new relations (ad 175) ca. 150,000 cost price existing relation p.m. 31

32 E-marketing! Webvertising / Flashvertising! marketing & newsletter (rich mail)! OHRA 75 years - OHRA s Wild Web Week! Off line campaign: - radio & TV - print - outdoor - mail 32

33 Executive summary!leading in direct business!investing in E-orientation!Success in selling investment products!improving health results! Major change programme underway Profit focus 33