Good result and positive customer service development for LocalTapiola during the first half of 2019
20.8.2019 - Economy
We offer customers security in their life and business. Our customers are increasingly satisfied with our products and services. Claims incurred in non-life insurance was €438.8 million, and decreased by almost 5% from last year. The return on investments developed well boosted by the decreased interest rate level and positive stock market.
Important events during the first half of 2019:
Security – We secure continuity and prevent damage
- The sales and premium income in voluntary vehicle insurance increased. We are still market leader in motor liability insurance with a stable market share.
- The corporate insurance business grew well in all important product categories.
- More and more customers want to be served online and through mobile devices. The new lifelong security application makes it possible to get insurance, savings and investment services on the mobile phone.
Finances – We help our customers prepare and grow wealthy
- Our motoring services are increasingly comprehensive. The finance portfolio of LocalTapiola Finance Ltd has grown significantly reaching €347.2 million in the end of June.
- Self-sufficiency is important for our customers. The reform of the investment services in 2017 in order to offer all customers the benefits of major investors has attracted over 20,000 customers.
Health – We promote health
- The popular service TerveysHelppi is developing fast. The well-being services of the Smart Life Insurance are now included in the application TerveysHelppi. The service developed in cooperation with Mehiläinen offers telemedicine services through the mobile phone.
- The Helppi service family got a new member when the LemmikkiHelppi pilot was started in the end of 2018. Through LemmikkiHelppi, customers get remote vet services in cooperation with Omaeläinkliniikka.
Comments of LocalTapiola Group CEO Erkki Moisander:
The first half of 2019 was good with respect to both the business activities and result. Our customers are increasingly satisfied with our products and services. The premium income increased in both non-life and life insurance. Claims incurred in non-life insurance was €438,8 million, and decreased by almost 5% from last year. The non-life insurance risk ratio decreased in comparison with the same period in 2018, and the cost ratio was under control. The return on investments was good. The outlook regarding the return on investments during the second half of the year is challenging due to the low interest rate level.
We are market leader in motor liability insurance with a quite stable market share. The voluntary vehicle insurance premium income grew because of the increased sales and moderate rise of premium rates due to the increased claims expenditure.
LocalTapiola Finance exceeded the expectations during the first half of the year. The finance portfolio grew faster than expected reaching €347 million in the end of June. In addition, the result was better than expected and clearly positive earlier than planned. The significant increase of the market share in the challenging car sales market will probably stabilize during the second half of the year, but the outlook for the finance company is positive.
More and more people want to get insurance, finance and health services digitally and through mobile devices. The new lifelong security application makes it easy for the customers to use our services. In addition to getting insurance services, customers can manage and view their savings and investments in the application.
A good example of mobile services is the telemedicine service TerveysHelppi developed in cooperation with Mehiläinen. The well-being services of the Smart Life Insurance are now available in TerveysHelppi.
Due to the success of the TerveysHelppi service, we decided to offer the same kind of service for pet owners. The LemmikkiHelppi pilot carried out in cooperation with Omaeläinkliniikka makes it possible for customer to get vet services on a mobile device.
Preparing for the future is an essential part of the customer lifelong security. We have increased the market share in risk life insurance, thus strengthened our position as market leader.
In addition, our market share has continued to increase in group pension insurance. The market share is almost 20%, and our market share has increased approximately 8 percentage points during the last 4 years. Thanks to the investment services reform, our group pension insurance customers can benefit from LocalTapiola’s investment expertise and role as a major investor. The customers were satisfied with the reform, and the number of customers has continued to increase in 2019.
In our opinion, everyone shall be able to benefit from cost-efficient savings and investments, and therefore our customers have access to the same benefits as major investors. More than 20,000 customers are purchasing LocalTapiola’s insurance-based asset management.
Our customers appreciate professional and reliable asset management. For the third year in a row, the international fund rating organization Lipper Thomson Reuters awarded LocalTapiola Asset Management for being the best asset management company of the small asset management companies in the Nordic countries. In addition, the Finnish Quality Association awarded LocalTapiola Real Estate Asset Management with the price Excellence Finland.
LocalTapiola is one of the largest business insurers in Finland. We have had a long-term growth in the corporate sector, and during this result period, more and more entrepreneurs and companies have selected LocalTapiola as their cooperation partner. The loyalty and satisfaction of the customers have increased further.
We are able to offer more financial support to SMEs. LocalTapiola was the first Finnish insurance company to join the InnovFin SME Guarantee of the European Investment Fund. LocalTapiola’s investment in the programme is €100 million.
We introduced cyber insurance and service for SMEs and farmers, which is a comprehensive corporate security risk management service.
We have increased our market share in the farm insurance business, and strengthened our position as market leader. The financial services for farmers are promoted in cooperation with our banking partners OMA Säästöpankki and Säästöpankit by offering local financing to farmers.
In January-June, LocalTapiola Group’s direct premium income in non-life insurance was €750.5 million. The premium income was 4.2% higher than during the same period last year. The premium income in life insurance was €243.3 million during the first half of the year. The return on investments regarding assets managed by LocalTapiola Asset Management Company and LocalTapiola Real Estate Asset Management was good.
The bonus paid to customers for concentrating non-life insurance to LocalTapiola was €36.8 million, and paid compensations amounted to €375.0 million. The amount of Bonus of the S Group submitted to customers based on insurance premiums was €15.7 million. The amount of life insurance benefits paid to customers was €180.2 million.
The lifelong security strategy for the years 2019-2021 has been approved and we have undertaken to be the most appreciated lifelong security partner for the customers. In accordance with our lifelong security strategy, we offer different preventive services, security services and well-being services in order to help people to have a safe, financially successful and healthy everyday life. We serve our customers locally by making use of digital services and customer understanding based on analytics and localness. Our professional personnel offers the customers high-class and caring services.
In the beginning of 2020, LocalTapiola will have a new CEO. The new CEO is Juha Koponen.
The figures have not been audited.
"More and more people want to get insurance, finance and health services digitally and through mobile devices. The new lifelong security application makes it easy for the customers to use our services. In addition to getting insurance services, customers can manage and view their savings and investments in the application."
TerveysHelppi apunasi joka päivä
TerveysHelpistä saat nopeasti ja helposti vastauksia terveyshuoliisi.
Etälääkäripalvelut ovat aina ulottuvillasi, kun terveydenhuollon ammattilaiset
ovat chatin tai puhelinsoiton päässä.
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