TechEx aims to develop the portfolio while preserving profitability. P&C is beneficial for stabilizing performance as this business is less correlated to financial markets and contributes to positive cash flows and business diversification.TechEx strengthens the technical performance by acting on the key elements of the value chain:
- technical pricing,
- portfolio cleaning,
- price optimization,
A new Group pricing and underwriting policy (and related guidelines) was issued to guarantee full control on the underwriting process and an operating return on equity in line with Group's strategic objectives. Group underwriting guidelines were released for all the business (motor and non motor) and a certification process was introduced to guarantee a state of the art pricing process.
A Group program was launched to strengthen and extend telematics initiatives in selected geographical areas, leveraging on the creation of a Group Telematics Competence Center and on the competences acquired in Italy (where we are in a leading position with over 650,000 vehicles insured with telematic based products).
In the event of a claim, clients expect a simple, fast and efficient service while at the same time claims management needs to effectively deal with fraud attempts, to have an accurate estimate of the damage and, for motor claims, to manage a high quality network of mechanics and body shops. We rely on a large network of claim experts, including claim and fraud specialists and loss adjusters.
TechEx is working with this network in order to make our approach more sophisticated in areas like loss control, fraud management, material damage evaluation, partner management, bodily injury, file review and recovery. The new approach to fraud management produces substantial savings in the cost of claims, while enhancing the identification of suspicious cases, new fraud patterns and organized fraud and reducing false positives with the improvement in data quality for suspicious cases.
The Fraud Analytics Competence Center has been set up with the aim of enhancing the capabilities and the level of sophistication in fraud detection by combining statistical and claims fraud knowledge.
Reinsurance has experienced a further decrease in costs, driven not only by the first implementation of the Facultative Reinsurance Guidelines but also by the optimization of Group treaty protection which benefited from less stringent market conditions. In April 2014 Lion I Re was issued. It is the first ever catbond finalized at providing alternative reinsurance protection against the European windstorm risk.
Environmental changes have highlighted the Group exposure not only to catastrophic losses but also to the frequency of small to medium size natural events. To mitigate this emerging risk we purchased an aggregate catastrophe protection cover which integrates the per event cover and limits the deterioration of the combined ratio at Group level.