Strategy operationalization

Initiative: combine PZU’s databases under a single CRM (customer relationship management) system / obtain a full client picture (360 degree view).

Purpose:

• effectively customize the offer to client needs in terms of quality and costs alike;
• align pricing to risk better;
• accelerate the procurement process and streamline service processes by providing clients with tools to manage easily the products they have in the overall PZU Group;
• create a full client picture (360 degree view) to cultivate partnership relations, standardize processes, grasp client needs better, underwrite risk in an optimum fashion, pursue more effective cross-sales efforts and manage the sales network more efficiently.

Metric: percentage of marketing consents and client contact details in PZU and PZU Życie.

Percentage of marketing consents in PZU

Percentage of marketing consents in PZU Życie

Execution:

• In 2020, development work on the integrated CRM platform was continued with a view to supporting all retail sales channels. The platform operates in the “360 degrees” environment – a system that provides PZU agents and employees with ergonomic and efficient access to full information about their clients. The 360-degree view helps build relations with clients and forms the basis for growing cross selling in the PZU Group.

Initiative: tap into new technology solutions harnessing proprietary resources and collaborating with the startup community (insurtech, fintech, technology firms).

Purpose:

• support cross selling initiatives;
• grow the client retention ratio in various lines of business;
• analyze pictures and images in claims and benefits handling processes (e.g. comparison in real time of the picture of the claim and the cost estimate received);
• smart solutions in medical diagnostics;
• enhance efficacy in the detection of insurance fraud;
• render risk management consulting services for companies;
• launch the PZU Data Lab - center for the creation of innovations based on data and artificial intelligence;
• cut expenses;
• enhance quality in client service;
• augment client loyalty;
• build a competitive edge;
• improve sales and profitability;
• grow the value of the brand and the Company.

Metric: number of innovative solutions which at least 100 thousand clients of the PZU Group have used.

Execution:

• AI in the claims handling process – owing to the deployment of a solution based on artificial intelligence algorithms, PZU experts who handle more than half a million motor claims annually, receive only selected cases for analysis. The remaining ones, those that do not raise any doubts, are approved automatically or semi-automatically. This translates into significant financial savings and improvement in client satisfaction. Work is underway to deploy artificial intelligence in all other motor claims handling processes.
• The Band of Life, adapted for use in care for patients infected with coronavirus, is an electronic device worn on a wrist that helps save human life. It monitors the basic vital parameters of patients, such as blood oxygen saturation, pulse and temperature, and alerts medical personnel of any emergencies. The Bands, introduced by PZU in 2019 under a pilot project, have been modified after the outbreak of the pandemic to support the care for patients suffering from COVID-19. By enabling remote monitoring of the patients’ health, the Bands reduce the risk of transmission of the virus to medical personnel. PZU donated almost one thousand Bands of Life to hospitals across Poland.
• Cyber SME – a tool that scans the websites of small and medium-sized enterprises (SMEs) and verifies their cyberattack safeguards. It protects companies against threats coming from the Internet, providing them with tools to react quickly in the event of a cyberattack. PZU agents may also use this platform to prepare customized reports on cyber risks for distinct companies.
• PZU GO – an innovative beacon device that sends out automatic alerts about a road accident and helps to ensure the rapid arrival of assistance services to the injured. It is pasted to the car’s windshield. It connects to the PZU GO app in the driver’s smartphone through Bluetooth and when it detects a large g-force that may suggest an accident, it sends an alert to the PZU Emergency Center. At the same time, it transmits information concerning the vehicle’s location. A PZU consultant immediately calls the client to check whether assistance is needed, and if the client does not pick up, the consultant summons rescue services to the site of the likely accident. More than 93%¹ of clients declare that they are satisfied with PZU GO.

¹ PZU data based on interviews with clients

Initiative: create a straight-forward product offer in respect of how the products are structured and the wording used to describe them.

Purpose:

• have universal salespersons sell simple products effectively;
• increase simplicity and shorten the process for clients to buy products;
• make the simple offer available through the web (10 widely distributed products).

Metric: number of products in general sales.

Execution:

• in 2020 there were continued works to make a number of product enhancements for clients. New products and functionalities were rolled out to support more rapid customization of the offer to meet client needs, for instance, POZ Ochrona and POZ Zdrowie, as well as a number of smaller enhancements, such as creating a health questionnaire on the enrolment form to underwrite insurance risk more precisely. A number of service-related improvements were also implemented, new and simpler documents to confirm the conclusion of a contract were drafted and product parametrization was adjusted. In the near future there are plans to streamline the process of managing negotiations between agents / sellers and the client.

Initiative: build PZU Zdrowie’s size and profitability. Build a competitive edge by tapping into technology and the high quality and accessibility of services.

Purpose:

• develop new health insurance products and expand the “traditional” offering to include unique riders;
• activate the sales network and tap into the full potential rooted in the PZU Group’s client base;
• offer a modern patient service process giving consideration to the best practices on the market, innovative technological and medical solutions and quality of service standards, including VIP care;
• develop a network of proprietary centers through greenfield and M&A projects.

Metrics: PZU Zdrowie’s revenues (PLN million) and EBITDA (%).

PZU Zdrowie’s revenue (in PLN million)

PZU Zdrowie’s EBITDA margin

Execution:

• launch of sales of a subscription-based product, targeted predominantly at strategic corporate clients, distributed through the PZU Zdrowie sales network. At the same time, rules for internal communication with other PZU Group companies and for work on the shared portfolio were prepared to generate the best possible synergies enhancing the efficient sales of health products;
• establishment of a tender offering area – its key purpose is to align the product offering to the individual expectations of strategic tendering clients, in accordance with the adopted tendering procedure;
• launch of a Remote COVID Care program PZU patients suspecting or already suffering from a coronavirus infection. The program includes remote internist and psychological assistance and providing patients with pulse oximeters to measure blood oxygen saturation;
• adaptation of PZU Zdrowie facilities to the conditions of the pandemic and commencement of the provision of remote consultations on a large scale;
• establishment of an own telemedicine center named Centrum Telemedyczne PZU Zdrowie [PZU Zdrowie Telemedicine Center];
• establishment of collaboration with other medical centers. At yearend 2020, the PZU Zdrowie partner network comprised approximately 2,200 entities;
• launch of a state-of-the-art medical center in downtown Warsaw, one of the best in Poland. The center has been fitted with a host of innovative solutions to improve care for patients and set new standards in this areas.

Initiative: integrate the digital services surrounding the PZU Group’s processes. The largest project under this initiative is the mojePZU (“my.pzu.pl”) portal.

Purpose:

• gather client information in a single place;
• provide clients with a functional platform facilitating the use of PZU services, including the offering of insurance products, healthcare services (including the booking of doctor’s appointments) and investment management;
• 5 million accounts opened by clients on the mojePZU platform.

Metric: number of accounts opened by clients (5 million accounts).

Execution:

• provision of new functionalities of the mojePZU website to clients. In 2020, patients of PZU Zdrowie’s own centers were granted online access to their medical records and were able to book doctor’s appointments for their children. Since 2020, clients have also been able to view their list and status of claims and benefits through the platform. MojePZU also has a functionality enabling the purchase of selected products online (including Auto, Dom, Wojażer, Ja Plus, Edukacja, Auto Opony [Tires], Na wypadek Nowotworu [PZU against Cancer]), the use of an individual pension security account and accession to the PZU Pomocni loyalty club;
• launch of an easy authentication option by the client on the mojePZU platform – using the popular mojeID and mObywatel services. The client’s identity is confirmed remotely through an electronic banking platform;
• promotion of mojePZU among clients – dissemination of information about the website’s features and the resulting convenience of using the PZU offering;
• launch of the mojePZU app for mobile devices;
• 1.6 million mojePZU accounts at yearend 2020.

Initiative: launch a loyalty program for the overall Group spanning all its products. The points collected by using these services as well as other activities (among others having a claim-free history and referring the program to a friend) may be converted into products and services from our partners.

Purpose:

• grow the number of client interactions;
• expand the range and reach new target client groups (solicit young clients too) and align the offer better;
• segment clients and personalize the offering;
• support the development of all of the lines of business;
• engage club members to act to benefit the local communities in which they live.

Metric: number of participants in the loyalty program.

Number of participants in the loyalty program (in millions)

Execution:

• Reach 2.2 million club members by yearend 2020.