PZU Group’s new operating model

The PZU Group enjoys the trust of more than 22 million clients in 5 countries in Europe, of which 11.8 million, clients in Poland have group and individually continued life insurance.

The PZU Group’s offer is the most extensive and most comprehensive, insurance and financial offer on the Polish market. It consists of a broad array of insurance, pension and investment products addressed to all client segments. Group companies are active in health care, banking and additionally they render assistance services to retail clients and businesses through strategic partnerships. SECTION 1 PZU GROUP’S DEVELOPMENT

The PZU Group Strategy published on 9 January 2018: “The New PZU – More Than Insurance” SECTION 4 PZU 2020 - MORE THAN INSURANCE is client-centered. The mission that we have defined – we help clients care for their future – means that our client relationships and our client knowledge are becoming our overriding value, while our chief product is our acumen in addressing client needs to build a stable future.

PZU wants to do something different from the classical client relation model in which the only contact clients have with their insurer after buying a policy is when a claim occurs. PZU intends to do considerably more and effectively help clients solve its problems in many areas and during every stage of life. PZU’s philosophy of thinking about clients constitutes a departure from the classic model of an insurer’s client relations rooted solely in sales and after-sales service. PZU’s goal is to establish and maintain relations by delivering products well-matched to clients at the appropriate time and place so as to ensure at the same time that the product’s attributes (including its price) are aligned to client needs.

This approach has defined the operating philosophy under the PZU Group’s new business model.

The new model brings together all of the PZU Group’s activities and integrates them in a client-focused manner: life insurance, non-life insurance, health insurance, investments, pensions, health care, banking and assistance services. This approach will drive the gradual transformation of an insurer from focusing primarily on valuation and transfer of risk toward being an advisory and service company (operating on the basis of technological know-how). Achieving a high degree of quality and number of client interactions calls for the creation of a new model in which the core is client knowledge and the skill of building long-term relations. The transformation in the direction of an advisory and service company will make it possible to care for the clients’ future and satisfy their needs comprehensively when it comes to life, health and property insurance and savings and finance.

We are changing PZU – we are becoming a lifetime partner

We will be a long-term partner for our clients.

We help companies grow by offering them a wide array of products supporting their growth.

The PZU Group proposes abandoning “product centricity” in favor of an ecosystem whose overriding objective is to manage client relations skillfully by offering solutions in all venues available to clients. Accurately anticipating the future, understanding client needs and building ever better methods of becoming part of their daily lives are the logical grounds underpinning other initiatives in PZU’s new strategy. These initiatives will contribute to transforming the Group’s operating model in the direction of an ecosystem spanning not just insurance, but also banking, health protection and payments. SECTION 4 PZU 2020 - MORE THAN INSURANCE

Above all, PZU is driven to utilize its Big Data files better, it is betting on digitalizing processes, using artificial intelligence and new technologies associated with the development of fintechs and insurtechs. In this manner new underwriting methods will emerge in the Group. It is expected that by the end of 2019, tariffs will be optimized in real time, while the models themselves will undergo adjustment once every 1-2 weeks. This will open the path to the more extensive utilization of artificial intelligence models in tariff processes in 2020. At the same time, artificial intelligence is a method of simplifying processes, including ones directly affecting clients. The beneficiaries of change will be areas such as sales, claims handling and medical diagnostics.

The combination of PZU’s databases under a single CRM (customer relationship management) system will make it possible to customize the offer to client needs more effectively in terms of quality and costs alike. This will also accelerate the purchase process while streamlining service-related processes. Clients will be able to manage their products in the entire PZU Group quickly and easily (on their own or with the support of advisors).

Launching the “moje.pzu.pl” portal is not just the outcome of developing digitalization and mobility in PZU but also a way of radically modifying client interactions. This is a one-of-a-kind dashboard enabling clients to check their insurance coverage at any time, manage their medical coverage and appointments and handle their investments and, in the future, banking services as well. The ability to enter into an agreement through the online channel means that this portal / app will ultimately be used by all PZU clients.

To strengthen relations with its clients PZU also intends to simplify its product offer (in terms of the number of products and the language used), universalize the sales network and roll out an integrated SME service model. Tightening cooperation with the Alior and Pekao SA banks is also an important issue whereby the Group will be able to devise comprehensive financial solutions responding to the needs of retail clients and small and medium-sized companies. Up to 2020 PZU plans to fully utilize the potential of the financial market’s largest proprietary distribution network. The universalization of the sales network will make it possible for sales people to offer clients at least 3 of the PZU Group’s 5 lines of business (life insurance, non-life insurance, medical care, investment products, banking products).