DNB Skadeforsikring

DNB Non-life insurance
Nordic Insurance Trip - Carnegie
5th June 2014
Hans Petter Madsen
Managing director and
head of non-life insurance
Agenda
 Key financial figures
 Bancassurance in the retail market
 Profitable growth
 Insurance integrated in DNB’s customer processes
 Main activities 2014
 Market mechanisms
 DNB non-life strategy 2014-2016
2
Key financial figures
Portfolio premium 31.03.2014 (MNOK)
# individual customers
1,881
214,000
Market share Norwegian retail market
5.6 %
Market share non-life insurance*
4.6 %
Pre-tax profit 2013 (MNOK)
240
Combined ratio for own account 2013
86.4
Combined ratio for own account ex runoff 2013
90.4
Investment return 2013
3.2 %
*Incl. workmens’ compensation in DNB life-insurance
3
Bancassurance in the retail market
Business strategy
• To develop and deliver relevant and profitable
non-life insurance products to the retail
market in Norway
Products
• Fire and perils (house, home), motor, travel,
accident
Distribution
• DNB’s branches, callcentres and digital
distribution channels
4
Profit development: Profitable growth
Pre-tax profit
250
200
150
100
50
0
-50
-100
-150
-200
Pre-tax profit
•
2009
-100
2010
-178
2011
31
2012
203
2013
240
Substantial improvement in pre-tax
profit since 2009
Q1 2014
32
Portfolio premium
2,000
•
Portfolio premium increased by
MNOK 1,138 since 2009
•
# Customers 214,000 as of March
2014, increased by 5,000 since
2013
•
Substantial rate increases in 2010
and 2011
1,500
1,000
500
.
31/12/08 31/12/09 31/12/10 31/12/11 31/12/12 31/12/13 31/03/14
743
978
1,173
1,486
1,656
1816
1,881
5
Insurance contributes to realization of DNB strategy
6
What makes a winner in the insurance industry?
Distribution
Price
7
Cost
efficiency
Winner
Insurance integrated in relevant customer processes
Present when it matters
Foto: Foto:
CF-wesenberg@kolonihaven.no
Foto: Johs. Bøe
Foto: Yaymicro
8
Foto: Yaymicro
Substantial distribution power
Financial advisors
eBusiness
Customer centre
Branches
Web
9
Insurance
advisor
Customer
service and
Interactive
Open pages
Logged in
Mobile
Loans and insurance
- Core business as a lever for non-life insurance
10
More sophisticated pricing
Adequate risk
price models
Adequate
price/UWpolicy
11
Adequate price
models in
relation to target
CR
Adequate
discount
structure
Prices adjusted
to market
situation and
customers’
price sensitivity
Market
price
DNB: Large number of
offers valuable market
information
Risk
price
DNB: Short claims
history
Cost
 Cost efficient distribution
 Economy of scale – utilisation of group functions
 Efficient and future-oriented customer service through dnb.no both in
sales, claims settlement and customer service
 Group level branding
 New, standarised, fully integrated insurancesystem
12
Focus areas 2014




Distribution power
Pricing
Product packaging and co-operation
New, standarised fully integrated
insurancesystem
«Easy to find, easy to understand, easy to buy»
13
Market shares – main retail products – car insurance
Smaller companies
«The big four»
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
6
5
4
3
2
1
0
If
•
•
Gjensidige
Tryg
SpareBank 1
Storebrand
JFG
Codan
Eika
NEMI
Frende
«The big four» have lost 21% market share to the smaller companies since 1999
The market shares of these companies are still decreasing
DNB has increased it’s market share to 4.6%
14
DNB
Market shares – main retail products – home insurance
Smaller companies
«The big four»
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
•
•
7
6
5
4
3
2
1
0
If Skadeforsikring
Gjensidige
Storebrand
JFG
Codan
Tryg
SpareBank 1 Forsikring
Eika
NEMI
Frende
DNB
«The big four» have lost 19% market share to the smaller companies since 1999
The market shares of these companies are still decreasing
DNB has increased it’s market share to 6.1% and is the largest of the smaller companies
15
DNB Non-life insurance strategy 2014-2016
Main focus areas
• Present when it matters the most – offering the right products at the
right time
•
•
•
•
Becoming one of the leading Norwegian companies within pricing
Market position as a quality supplier of insurance
Focus on customer processes, service level and efficiency
Implementing a new, fully integrated, standarised insurance system
18
17