Strategy

TrygVesta’s vision is supported by our ongoing assessment and adaptation of our strategy, and it is implemented through our activities and action plans.

Our efforts to implement the strategy in all relevant processes such as budgeting, marketing, utilisation of capital and IT are clearly and firmly anchored, and the work is organised to a defined schedule with general targets and sub-targets.

All sub-targets, activities and action plans contributing to the general strategic target and the strategic themes are typically based on meeting customer requirements and expectations. In practice, the strategy is pursued by means of improving day-to-day operations, increasing productivity, enhancing the quality of our customer service with respect to sales and claims, simplifying processes and making our communications with customers more understandable. The strategic efforts are planned and managed centrally, but with clearly defined ownership of current improvements in the relevant areas.

Profitable growth
Emphasising that overall growth should be profitable increases our focus on profitable pricing and on managing relative costs, as is also reflected by the change of our strategic theme ‘growth’ to ‘profitable growth’ in 2008. We generated 4.9% growth in local currency terms in 2008 with a combined ratio of 89.1 (93.7 before run-off).

We intend to maintain and strengthen our market position in the Nordic region with due consideration to earnings. We intend to enhance our sales power by adapting our sales channels and insurance terms and conditions and by creating entirely new solutions to specific geographical areas with a market potential, such as the so-called Oslo project. Our core focus will be on insurance operations and capital utilisation in our general efforts with respect to value creation, including knowing the value of individual customers and the financial performance of our distribution channels and claims handling centres.

In Denmark and Norway, where we are the number one and number three player, respectively, in terms of market position, we are making adjustments to where and how customers meet us and to the products and coverage required by individual customers. Thus we enhanced our motor policy for concept customers in 2008 by adding the Tryg Vejhjælp roadside assistance feature at no extra cost, but with add-on options. We still have relatively modest market shares in Finland and Sweden where we focus strongly on sales. The Finnish sales channels were extended by an outbound call centre and our own sales force, and sales in 2008 were the highest since the beginning of 2002.

We continuously seek to have efficient claims handling procedures, always enabling us to provide high quality at a low cost. We do this by making claims handling processes more efficient on an ongoing basis and by joint procurement so that our customers get a quality experience.

Sales costs and administrative expenses in all business areas and staff functions are regularly reviewed in order to reduce unnecessary processes and costs, thereby gradually reduce relative costs over time. A number of our strategic action plans are also intended to contribute to this area.

Segmentation or structured and consistent use of customer data will enable us to prioritise and adapt products and service efforts to individual customer needs. We are in the process of refining our segmentation. When fully implemented, it will provide tools for enhanced customer loyalty and satisfaction and generate good opportunities for additional sales, thereby supporting profitable growth.

The peace-of-mind delivery
Our peace-of-mind delivery ensures that our customers’ needs are met in the best possible way before, during and after they have a claim. Our insurance products and concepts build on advice intended to help prevent claims events from arising. Should an event nevertheless occur, the customer has a sudden need for coverage and service such as repairs or replacement purchases.

A period of economic downturn is a challenge for many individuals and businesses. Accordingly, our peace-of-mind delivery is even more relevant in periods of uncertainty because an unforeseen expense or event that changes everyday life for the claimant may have greater consequences than would otherwise be the case. TrygVesta’s peace-of-mind delivery aims to alleviate customer concerns, and we do this by offering easy access, clear communication, easy-to-understand coverage and remedying if a claim occurs.

In 2008, the results of our strategic efforts with respect to the peace-of-mind delivery included that we simplified our communications with customers, written as well as oral. Our corporate values – Compassionate, Dynamic and Innovative – are reflected in our products and our communications with customers. We changed the contents of our Danish building policies in 2008 to provide extended coverage for precipitation claims caused by changed climatic conditions, thereby meeting our customers’ need for peace of mind.

We are in the process of simplifying our written communications, including letters, brochures and policy texts to the mass market, targeting them to customer segments and bringing them closer to customers. The intention is for customers to perceive our communications as relevant and understandable. Enhanced customer communication is also part of the strategic theme – self-service.

Self-service 
Our values are based on quality and simplicity. Online self-service options will meet many customers’ needs and wishes to deal with insurance matters at their own pace and whenever it suits them best, the same way as many people now handle their banking matters, travels and purchases of books, electronic products and the like.

Online self-service means that customers handle their own business, and that the underlying processes and products automatically generate policies with the desired contents, or that claims handling is automated. Self-service options include policy changes, service, advice, claims handling and purchase of insurances.

We already offer various online service options, but this only amounts to a small proportion of our total business processes. In order to fully exploit online insurance servicing a number of processes and product contents have to be adjusted to facilitate end-to-end processes.

Our existing solutions comprise sales in Sweden and Finland, sales of travel insurance, and an option for commercial customers to report changes to the persons covered by workers’ compensation insurance and changes to their car fleet.

Customers currently have online access to an overview of their policies in Denmark. Further to this, e-mail and text messages will become natural communication platforms with customers together with a personal space on our website, to be accessed by mobile or via the Internet.

In 2009, online claims reporting will become available for private customers in Norway. Customers in Denmark will be able to buy the most common policies, such as motor, contents and building, and in a few years’ time, customers will have a full self-service option for changing their policies and for reporting and handling claims.

The transition to more self-service options will contribute to the ongoing adjustment of costs of sales, administrative expenses and claims handling costs as well as to enhancing customer loyalty and satisfaction.

Human competencies
In order to be an attractive partner for customers and employees alike, employees need to develop and be compassionate, and as an organisation we should live up to our vision. Our strategic focus on human competencies reflects that we understand and respect that people are the most important resource in a successful organisation.

Lean is a process driven and customer oriented review of work processes and routines for the purpose of reducing waste and free resources, making room for development, innovation and more efficient work routines. Our Lean efforts were launched in 2007 with three projects, and 16 projects were implemented in 2008. 28 new projects are scheduled for 2009.

As an example, Lean has been implemented in our Private underwriting departments, reducing handling times by more than 50% for several tasks within a few weeks. Furthermore, employee satisfaction has increased, and the day-to-day collaboration with Sales and Customer Service has grown much stronger. These factors have also contributed to the growing customer satisfaction. The experience gained in Private underwriting will now be deployed in other departments.

The management academy was set up in 2008, aiming to induce all TrygVesta managers to work in line with the Group’s corporate values. A total of 192 managers attended development training in 2008. Systematic follow-up and development of the Group’s managers will be implemented in 2009, making them ambassadors for our corporate values in relation to employees and the external community.

“The Living House”, a means to fully exploit the synergies anticipated from project “The Living Organisation”, will create a new environment in the workplace, intended to further enhance creative thinking and innovation.