2.5 Outlook

Retail insurance

We are focusing on boosting the efficiency of distribution processes, product changes and the development of advanced methods for assessing insurance and financial risks, which will enable us to tailor insurance coverage and premiums to the customer’s needs. We continue to implement the strategy of professionalising the distribution network and continuously improving the quality of sales. In 2023, we continue the series of development programmes as part of the ERGO Hestia Agency Network Certification Programme and we will implement product clauses to facilitate the work of professional advisors. As we pursue the Sustainability (ESG) Strategy, we are preparing changes to our product offering to support green projects and solutions. The implementation of the Electronic Green Card will significantly streamline the policy underwriting process and support our environmental objectives. To attract new customers, we plan to expand the quotation process for renewals of Buyer’s Liability insurance policies in iHestia.

Partnership programmes

In the area of Partnership Programmes, further integrations and expansion of the product portfolio are planned to increase our presence in the affinity market. In the direct channel, we expect to further diversify the portfolio by improving attractiveness of the voluntary risk offer and by making customer selection more precise. One of the initiatives in this area is to significantly improve the premium calculation process by using data from the CEPiK databases as part of the short sale path.

In retail insurance, we plan to launch a new business line in 2023: Health Insurance. It will be based on preventive health care and the organisation and provision of medical services; in the first phase of the project it will be dedicated to individual customers only. The main assumption of the project is that it will be distributed through the ERGO Hestia Group’s agency network, which is based on modern distribution paths. An IT project has been launched to design and implement dedicated services that will enable our intermediaries to distribute this insurance product and customers to benefit from medical services.

Corporate insurance

In the corporate insurance area, we will continue to promote the sales tool – the ERGO Biznes system – among agents. In property insurance, we plan to continue our efforts to update the sums insured and to work on a new tariff. We are increasing the promotion of engineering services (active sensors, thermographic testing, penetration testing, fleet security programmes) to reduce the risk of business interruption to our customers.

Motor insurance

We plan to launch a new platform for underwriters used to prepare quotations and distribute fleets, which also replaces paper printouts with electronic versions of insurance contracts. An important part of the project is the automation of the underwriting process and the implementation of a new GLM tariff model* for cars and delivery vehicles in 2023.

Agricultural insurance

Development work will be performed on agricultural insurance products. In 2023, a new product will be introduced – insurance of agricultural equipment and machinery (also referred to as Agrocasco). Sales will be developed by introducing new intermediaries for mandatory agricultural insurance and property insurance products, as well as for subsidised crop and livestock insurance.

Claims handling

In this area, we will continue to use robots to eliminate repetitive processes and increase efficiency of work. Increasing customer satisfaction, as evidenced by the reduction in the number of interventions, remains our goal.

Individual life insurance

In 2023, we plan to increase sales of biometric insurance. We intend to introduce further incentive and marketing tools, as well as training and development programmes for existing agents and new distributors.

Group life insurance

Our goal is to build long-term relationships with insurance intermediaries (agents and brokers), also by:

• leveraging the leading position of STU ERGO Hestia SA in the brokerage channel to sell life insurance,
• striving to be the partner of choice in the agency channel,
• offering non-life products together with life products as a complementary offering of the ERGO Hestia Group.

We also plan to implement further product changes in Closed Groups and in the Open Group.

Innovation development

Over the past few years, mainly due to Pandemic, the willingness of customers to buy insurance through digital channels has increased from 44% to 54%, and the use of the mobile channel has increased by as much as 14 p.p. to 37%. This trend will accelerate, as evidenced by the consistent recognition by insurance leaders over the years that technology transformation is a priority for the entire sector. This is why we have adopted a cloud-first approach to extendaccelerate our digital transformation.

Running our infrastructure in the cloud allows us to modernise our product offering Sales applications can be continuously developed and adapted to the needs of several million customers, thousands of businesses and hundreds of insurance agents and brokers, and the company is able to test and implement new solutions much faster than before. This is the largest cloud transformation in the Polish insurance sector. We have implemented advanced sales systems, such as iHestia, we have automated internal repetitive processes and applied blockchain technology**. The foundation for all these solutions is the modernisation of the IT infrastructure and the use of cloud computing. As a result, sales applications can be improved on a continuous basis and access to them can be even faster and more convenient.