Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — Investor Day (August 2014)
18 slides from Sampo Oyj's investor day presentation, Aug 22, 2014
Slide 1: Modern underwriting in If Commercial
Modern underwriting in If Commercial Knut Beckstrøm, Nordic head of Product and Underwriting Commercial Sampo group Analyst day August 22nd 2014
Slide 2: Purpose and content of the presentation
Purpose and content of the presentation Present examples of how a true underwriting work with: 1. Transactional excellence by first liners within Sales and Underwriting (UW) 2. Improved customer service and – pricing - More customers handled by sales (tariff) - Individual UW focusing on large custom
Slide 3: What is underwriting?
What is underwriting? Underwriting is the process of determining what risk to insure, at what terms and what price… … and iteratively using past Business & Economics Engineering experiences to develop the process further Science UW is an inexact Diligence science Facts & Statistics Gut feeling Laws
Slide 4: We are a professional underwriting company (1/2)
We are a professional underwriting company (1/2) 41.3 40.0 39.9 40.9 41.3 GWP 2009 2010 2011 2012 2013 CR% Risk% Cost% 4
Slide 5: We are a professional underwriting company (2/2)
We are a professional underwriting company (2/2) Initiatives • Relax, we’ll help you • Best in Risk • Quality • The Modern Underwriter program • The Modern Product Expert program Skills • Challenger sales training • If Academy • Private ahead 5
Slide 6: We only insure risks we understand
We only insure risks we understand UW Policy to secure that our operations are in line with corporate strategy, risk profile and risk limits BA specific UW Guidelines with clear instructions and limits to product, sales and underwriters UW Committee UW committee including head of UW in each BA to ad
Slide 7: Modern Underwriting
Modern Underwriting “ Let’s try it out ” “ If… offers an exciting working place “ “ I work hard for my 3. Prototype new customers ” ideas Innovative, customer oriented culture 1. Develop the 2. Continuously core; Product & seek new insights pricing skills 7
Slide 8: Tariff versus individual UW; A key challenge
Tariff versus individual UW; A key challenge Private Commercial Industrial • ~100% tariff • ~60% tariff • ~100% (premium) individual UW • ~85% tariff (policies) 8
Slide 9: Setting the borderline between tariff and individual UW is a core competence in itself
Setting the borderline between tariff and individual UW is a core competence in itself 9
Slide 10: The typical profitability pattern
The typical profitability pattern Product area X, Sweden Product area Y, Norway 10
Slide 11: Greenhouse case Norway
Greenhouse case Norway Customer Claims Claim size year (MNOK) Customer 1 2009 69 Customer 2 2011 49 Customer 3 2008 20 Customer 3 2012 6 Actions/demands Stricter UW guidelines, fire alarm, electric fire prevention system, sprinkler system and distance to other activities Outcome Preventive measures
Slide 12: Our approach
Our approach Improved tools • Profitability, re-pricing and claims reports down to customer level • Pre- and post renewal reports • Clear KPIs and bonus measures Cultural work • Management focus Improved quality and execution of • Buy in on all levels, one voice profitability measures. • Transparenc
Slide 13: Example of follow-up tool
Example of follow-up tool Customer Xxx 13
Slide 14: Positive effects achieved from the UW activities
Positive effects achieved from the UW activities Reference Challenging segments segments 14
Slide 15: More customers handled by sales (tariff) and individual UW focusing on large customers (1/3)
More customers handled by sales (tariff) and individual UW focusing on large customers (1/3) What • New UW rules: 1/3 of policies transferred from individual UW to sales (tariff) • New pricing tools and -mandates to sales • Nordic UW organization with right competences and 35% less UWs and leaders •
Slide 16: More customers handled by sales (tariff) and individual UW focusing on large customers (2/3)
More customers handled by sales (tariff) and individual UW focusing on large customers (2/3) 16
Slide 17: More customers handled by sales (tariff) and individual UW focusing on large customers (3/3)
More customers handled by sales (tariff) and individual UW focusing on large customers (3/3) Why? … a true win – win – win 1. Customers get better service • Immediate service by front liners • Underwriters focus on large and complex risks 2. Smooth operations and lower costs 3. Strong UW results by
Slide 18: Summary
Summary Prototype Culture Core Insight 1. We have a strong record as a true UW company which continuously improve transactional excellence, customer servicing and pricing 2. Modern Underwriting - the way forward - implies combining deep UW skills with curiosity and innovation to deliver great custom