Tryg A/s · OMXCOP:TRYG
Tryg A/s — Investor Day (June 2016)
35 slides from Tryg A/s's investor day presentation, Jun 16, 2016
Slide 1: Analyst Day
Analyst Day 16 June 2016 Follow us on Twitter: @TrygIR
Slide 2: Pricing, innovation and efficiency
Pricing, innovation and efficiency Christian Baltzer, CFO
Slide 3: Building pricing power
Building pricing power Pricing competitiveness 2013 2015 2017 25 33 25 Percentage Percentage Percentage 67 75 75 Tariffs less advanced than peers Tariffs at peer level Tariffs more advanced than peers 3 16 June 2016
Slide 4: Pricing roadmap going forward
Pricing roadmap going forward 4 16 June 2016
Slide 5: Dynamic market pricing
Dynamic market pricing Detailed development of Tryg’s pricing scheme Average ( - 2012) Differentiated (2012-2017) Market based (2015 - ) Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 1 Customer 2 Customer 3 Customer 4 Customer
Slide 6: Customer life time value approach
Customer life time value approach - a new tool to profitable sales and growth Customer Value Model Calculate on an individual level Benefits – The customer’s expected life time value based on expected life time, risk and claims ratio to optimise lead-, and sales Reduced Decrease process level of in
Slide 7: How do we work with our existing portfolio?
How do we work with our existing portfolio? Migration Simple renewal From old-product and price Automated Price Update To new product and price Renewal price based Add-ons on price optimisation Extended water damage More safety Cosmetic differences Home help 7 16 June 2016
Slide 8: Making the cake bigger!
Making the cake bigger! Growth products M&A Children portfolio A lean innovation set-up Capitalise on the new bonus model 8 16 June 2016
Slide 9: Reductions in expenses and claims
Reductions in expenses and claims Efficiency programmes Expense ratio 16.4 Delivered On track 15.6 15.6 DKK 1,000m For DKK 750m 15.3 15.3 15.1 14.6 14.9 2012 2013 2014 2015 Q1 2015 Q1 2016 Adjusted for one-off effects FTE development Sourcing as a key driver for efficiency 3,913 3,703 3,599 Franchis
Slide 10: Continuous focus on efficiency
Continuous focus on efficiency Continuing our journey’s … …and utilise other areas DKK 2.0bn of total cost Sourcing Distribution power DKK 1.4bn of total cost Claims handling Process efficiency Efficiency through insights 10 16 June 2016
Slide 11: DoT - Digitalisation of Tryg
DoT - Digitalisation of Tryg Lars Bonde, COO Jane Kaasgaard, Programme Director of Digitalisation
Slide 12: The global market expects growth in digital channels
The global market expects growth in digital channels New premiums sold online today More digital after purchase 8% in life 10% in P&C 37% increase in customers’ use of A recent study digital for after-purchase inquiries shows that… and servicing Less contact center use 79% 26% decrease in customers’
Slide 13: Digitalisation is important for customers' experience
Digitalisation is important for customers’ experience ”Min Side” the most important customer solution Development focus Min side 15% 29% 51% 7 of 9 76% Danes is predominantly positive towards the Telephone 22% 33% 35% digitalisation of customer service. Webpage (information) 22% 35% 32% 4 of 9 Perso
Slide 14: Where did we come from? (Tryg -1year)
Where did we come from? (Tryg -1year) Tryg already delivers strong digital services in several areas … In 3 years the number of digital customers in Tryg has ! Digitalisation has been on the skyrocketed … agenda in Tryg for quite some time. We have focused on the absolute basic functionalities, and
Slide 15: Digitalisation of Tryg: Self-service and up sale
Digitalisation of Tryg: Self-service and up sale • Existing customers • Meeting current needs Focus • Making it easy and accessible Customer experience Basic functionalities Customer centric Calculate Up sale Always available Self-service Claims Transparency 15 16 June 2016
Slide 16: The customer's digital insurance universe
The customer’s digital insurance universe Anders And • Customisation ! • Advisory and upselling • Lead-generation • Responsive across all devices Lykkevej 10, Andeby • Chat and access for customer Lykkevej 10, Andeby service 16 16 June 2016
Slide 17: Digital claims filing
Digital claims filing The delivered claims forms (Content, Travel, House and Car) cover 85% of the claims for Danish private customers - and 65% of all DK claims All Private claims covered in DK by end 2016. Faster response time and fewer follow-up Supports customer experience Drives digital traffic
Slide 18: Tryg is the best digital insurance company in Denmark
Tryg is the best digital insurance company in Denmark ” Tryg comes second in both evaluation of the best digital customer solutions and in the best internal digital setup, giving an overall first place. The evaluation of the best digital customer favored Alm. Brand due to the weighting of customer v
Slide 19: Private Denmark
Private Denmark Johan Kirstein Brammer, Senior Vice President, Private Denmark
Slide 20: Private Denmark
Private Denmark Private DK National Work Faster Decision Customer Innovation Focus Smarter making Focus FCR 83% NPS 32 PRIVATE 20 16 June 2016
Slide 21: Key figures
Key figures Development in key figures Private 5,094 600,000 Households Main products Premium 4,903 4,832 4,853 2012 2013 2014 2015 87.7 86.0 85.4 82.5 Combined ratio (NO+DK Private) 2012 2013 2014 2015 90.0 89.9 89.8 How is performance? 89.7 89.7 Retention • Strong profitability • Positive topline
Slide 22: Performance 2015
Competitor position in DK (Private) Net Promotor score 5 7 10 28 29 35 Performance 2015 Combined ratio 100% 86.6% 86% 85.4% 80% 96,5% Expense % 22% 17.7% 16.3% 13% 12% Growth premiums -2% -1.4% -1.1% 0.4% 2% Q4 2015 Overall Brand attraction 15% 40% 18% 37% 23% 25% Note: Combined ratio is Private DK/
Slide 23: Overall strategy
Overall strategy BALANCED CUSTOMER EMPLOYEE Focus GROWTH EXPERIENCE ENGAGEMENT • Customer Front Sale & • Intelligent Pricing • ≥ 3+ Master Plan Must win Claims battles • New Revenue Streams • Loyalty Programme • Work smarter & FCR • Sales & retention • Customer Journey & SL • United Private DK CONTI
Slide 24: New attractive product offerings strengthens our profitability and growth
New attractive product offerings strengthens our profitability and growth #1 in DK consumer reports New module based product portfolio • A range of new and attractive products • Products are module based with add-ons • Improved customer experience Contents insurance • Products and pricing are ground
Slide 25: Customer bonus
Customer bonus Denmark's ‘biggest’family Positive effect on retention Private customers getting bonus letter ‘I expect to be in Tryg next year’ Have heard about Customer bonus 93% > 780,000 individuals Have not heard about Customer Bonus 81% Retention rate increase by 1 pct. gives approx. DKK 50-150
Slide 26: Establishment of integrated 'customer front' with improved efficiency
Establishment of integrated ‘customer front’ with improved efficiency Work smarter Improve efficiency Increased employee satisfaction Increased mandate WF Improved M customer satisfaction Sales & Claims Service handling Increased sales Incentive Multi skills 26 16 June 2016
Slide 27: Increased sales of niche products
Increased sales of niche products Pet insurance Child insurance concept • 40% increase in sales after launch of new • Large potential in DK – 1/3 are uninsured pet insurance • New 360 degree child insurance • Kitten & Puppy start-up kit incl. insurance • New sales channels and proposition packaging
Slide 28: Tryg Procurement
Tryg Procurement - Releasing the full potential of Tryg’s cost base Morten Hald, Procurement Director 28 20 June 2016
Slide 29: Annual spend
Annual spend Spend by categories m@ Motor mBuilding mContent mOtherclaims m Health & Travel Indirect 29 16 June 2016
Slide 30: Next Level Sourcing
Next Level Sourcing DKKm Target and realised savings 1.400 Target 1.200 1.192 Actuals 945 1.000 692 950 800 767 600 326 610 400 94 291 200 92 0 2012 2013 2014 2015 2016 2017 Procurement department Benefits • From 12 to 35 FTE Enhances Tryg’s bottom line directly Reduces the need of increasing in
Slide 31: Next Level Sourcing initiatives
Next Level Sourcing initiatives • E-auctioning/RFQ of major reconstruction tasks • Consolidated network of craftsmen and damage control • Fixed prices on subtasks (incl. hourly wage and materials) 2017 • In4mo claims handling system • Scalepoint Content 500 • Stricter control of documentation • Cons
Slide 32: High class systems as efficiency driver - In4mo
High class systems as efficiency driver - In4mo Mobile app Webportal Improved Improved Reduced Reduced customer employees cost cycle time satisfaction satisfaction 32 16 June 2016
Slide 33: High class systems as efficiency driver - Scalepoint Home Content Solution
High class systems as efficiency driver - Scalepoint Home Content Solution Branded Replacement Shop Core features Value Proposition Self Service Reduced pay outs Online Settlement Tool Reduced cycle time Matching Engine Optimised use of business rules Online Replacement Shop Procurement volume utili
Slide 34: Successful sourcing initiatives
Successful sourcing initiatives Tryg Alarm – A successful outsourcing case Benefits realised • Approx. 20% saving on cost after outsourcing • Improved service levels • Increased customer satisfaction • Customer complaints dropped Outsourcing of the health team to Falck FTE development - Claims 967 8
Slide 35: Increased efforts against fraud
Increased efforts against fraud Today, we uncover fraud for approximately DKK 150m Effort to fraud protects partly the honest customers and partly Tryg against the risk of anti-selection among fraudsters. Further savings potential of more than 1pp of total claims ratio 35 16 June 2016