W e can be proud of CNP Assurances’ performance in 2O17. Our attributable net profit rose 7% to €1,285 million and our new business value surged 8O%.
Those figures are a testament to the way we have improved the profitability of our business thanks to an offering finely balanced between savings/pensions and personal risk/protection. On the strength of these encouraging trends, we are proposing an increased dividend payment of 84 euro cents per share and have also undertaken to deliver organic growth in EBIT of at least 5% in 2O18. These performances reflect our highly impressive momentum. Beyond the numbers, I’m talking about what is driving us forward. All our employees are working hard to execute our strategy, and its priorities have received unanimous backing from our Board of Directors. We are all pulling together! We are embracing, nurturing and funding innovations right across the Group. Customer satisfaction is now of paramount importance to all of us, and so quality of service, a finely tuned offering, and customer relationship management represent top priorities, with each of our employees fully committed to the cause. Thanks to our professionalism and our proactive approach, we are constantly delivering better service to our customers and our partners. As well as being our duty, that’s a source of pride for us, and it’s also the most compelling evidence of our ability to build a future that lies in a new direction yet is worthy of our rich history. We have high hopes for our multi-partnership model.
Building on the major foundational partnerships already sealed with La Banque Postale and the BPCE Group in France and with Caixa Econômica Federal in Brazil, we forge new agreements every year, demonstrating our agility and the ability of our businesses to meet a wide variety of needs. Each and every accomplishment strengthens the CNP Assurances brand. It has always epitomised and indeed still epitomises security, and is now increasingly associated with innovation – both at home in France and via the Youse brand, which is making rapid and highly promising progress in Latin America. Our growing investments in digital technologies are essential for us to improve our quality of service and to streamline our business relationships, and we are laying the foundations for the future by establishing numerous partnerships with start-ups, including equity investments in certain cases. CNP Assurances is genuinely primed to capitalise on the revitalised personal insurance market. Our strength comes from believing that, amid the far-reaching transformation of the insurance sector, our agility, our unrivalled technical capabilities, our service culture
A n n u a l re p o rt O
and our corporate values, founded on our identity as a public enterprise, represent tremendous assets and that nothing is impossible for us if we maintain our resolve, commitment and creativity. Our management team is leading this ambitious plan very deftly, and the sky really is the limit for the next chapter in our development. I want our shareholders, our customers and our partners to be able to see this so that they continue to place their trust in CNP Assurances. All our employees and all the members of the Board of Directors are working hard to make sure CNP Assurances goes from strength to strength.
Open doors, open windows, explore without any preconceptions or limits, wonder and reinvent, build together. Youse building trust 3.O (p. 8), A massive boost with Magali Noé (p.1O) and a round-up of the latest start-up trends (p.12)
THINK SOLUTION, NOT PRODUCT! Rejected again! Raphaël, the cofounder of a promising start-up hosted at the Station F hub, has been left dumb-founded. He has been able to get investors to back him, but although he has visited countless apartments and submitted all the required paperwork, no landlord will accept him as a tenant. Trust can open doors, and that’s exactly what Youse, CNP Assurances’ new 1OO% online subsidiary, aims to achieve by offering to guarantee rental payments to landlords for a small monthly charge paid by the tenant. It significantly boosts the guarantees non-standard tenants, especially those not in permanent salaried employment – start-up founders, entrepreneurs, freelancers and casual workers – can provide to landlords. This innovation reflects CNP Assurances’ drive to meet demand arising from the transformations in and aspirations of society and to restore trust to become an insurer for the world we live in today.
INSURANCE FOR GROUPS OF FRIENDS IN BRAZIL A motor insurance policy covering five people? Genius! Raul rallied the troops and with his friends arranged a Youse Friends policy live with the Youse employee, who in his loud Hawaiian shirt certainly did not look like your typical insurer! It’s a collaborative policy that will really shake things up. Youse delivers a completely online customer experience, and policyholders can claw back up to 5O% of their premiums if none of their group members makes a claim during the year. Its motor insurance builds trust between policyholders and encourages safe driving.
A: When we are able to thrill and delight our customers with the insurance experience we provide! When this wow effect extends to our products and services, our systems and also the way we communicate with customers and make insurance simpler.
Q: At what point will you say the battle has been won?
Q: What rub-off effects do you hope to achieve by putting your employees in contact with start-ups?
A: A spark! Start-ups can provide us with their vision of the “solution” rather than a product, and they work in an extremely responsive and agile manner. Our interactions with them are always highly fruitful from an open innovation perspective. They help to speed up our digital transformation and make us more agile.
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“All the start-ups supported by CNP Assurances under the Open CNP programme are part of a trend that will change how insurance works in the future or is already challenging it today.” Hélène Falchier, Head of Private Equity and CEO of Open CNP
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. Tripling POLICYHOLDER NUMBERS IN 2O18 AND COVERING 1OO,OOO PEOPLE WITHIN THREE YEARS IS ALAN’S TARGET
1million MORE USERS AND 2,OOO ACCOUNTS OPENED PER DAY ON LYDIA
CNP Assurances is looking to introduce a new way of working and living together.
IMAGINE, LIKE, TRANSFORM The aim of this challenge was to get the message across to all employees that they have ideas that are useful for the business, and to encourage them to make suggestions and put them into action.
The theme of the 1st participatory innovation challenge held by CNP Assurances was improved customer satisfaction, a tremendously large topic that lies at the heart of business concerns. Behind the priority of designing products and services making policyholders’ lives simpler lay another equally crucial priority of embracing the cultural and digital transformation on the 2O2O roadmap – collaborative experience, project mode, sharing technologies and management coaching. All the elements of the new CNP Assurances were brought together in a 1OO% agile, completely mould-breaking contest.
RESULTS In all, 953 employees took part, including 2O3 who were directly involved in the 55 projects that were put to a vote. Five intrapreneurs won prizes, a face-to-face meeting was held with customers from the You & Us community to provide an update on their progress, and the Top prize for managerial innovation was given out at the 14th L’Argus de l’assurance awards ceremony.
“Offering the deaf and those with hearing difficulties an online chat session or video conference shows respect for policyholders.”
“All the paperwork we need to submit with a claim is together in the same place and available at any time. That’s very helpful!”
“It makes sense for digital to take over from appointments and letters for handling straightforward matters.”
The voting narrowed the field down to 1O projects. Then it was time to train teams in the art of pitching and present the projects to a panel of experts. Five projects passed muster and were immediately transferred to CNP Assurances’ booster where they received tailored guidance. The four projects currently being readied for roll-out will soon deliver improvements in our customer satisfaction levels.
Q: What does “getting the working community to pull together” actually mean?
A: Firstly, by investing in training. In 2O17, 85% of employees completed at least one training course. We are taking a fresh look at our skills guides to highlight the impact of digitalisation on each job and help every employee to see what the changes mean for them. And also by hiring people with cutting-edge digital skills.
A: The new agreement aims to achieve the best possible working conditions for our employees amid the ongoing transformation in the insurance world. It incorporates all the advances of recent years and maps out areas for future progress, such as teleworking and the right to log off. It also talks about making decisions jointly and encourages experimentation.
Q: Does the quality of work life agreement signed in 2O17 provide a framework for this?
A: We are conducting our first large-scale trial of collaborative working, and everyone will be involved in making decisions about the New CNP Assurances, one way or another. It will bring success for everyone.
Everyone’s an ambassador CNP Assurances’ business model is evolving more and more rapidly with digital and our growing number of contact points with customers. It’s essential to revitalise the CNP Assurances brand to make a difference and to do so in a collaborative manner. Everything is being done to build CNP Assurances’ new identity together with our stakeholders, including a blog via which employees can voice their opinions, and a workshop bringing together partners, policyholders and disruptors.
Transformed manager/employee relationships In a rapidly changing world, CNP Assurances’ managers are well aware their goal is to become more agile, flexible and responsive. That means reinventing how managers interact with their staff, moving away from centralised management to a coaching approach of guiding and supporting, and taking risks personally and encouraging the team to do the same. Managerial innovation also requires input from staff.
Mobile working, group-wide workshops, transformed manager/employee relationships and a brand overhaul – four changes that will make us stronger.
Mobile working Three aspects are being studied – time (need for responsiveness vs. the work/life balance), space (mobile working, remote working) and relationships with others (groups and individuals). Since 2O17, 12% of employees have been trialling teleworking one day a week. The pilot phase is continuing, with an enhanced range of possibilities, such as the number of days, participants and formulas.
Luca Caruso, Head of International Group Technical Studies, did not need asking twice. “I work a lot of hours, and it takes me around ninety minutes to get to and from work every day. I also have a three-year-old son, and I wanted to fetch him from nursery school once a week. It’s great to be able to spend this special time with him. With teleworking I need to organise my week better, but two days’ teleworking per week is feasible. I also encourage my team to give it a try, as it’s good for your work and good for your personal life.”
Valérie Marot, a CRM officer based in Angers, is enthusiastic. “I’ve taken part in workshops at the booster in Paris with colleagues responsible for CRM, business monitoring, digital and quality, and with a start-up that found a technical solution to our needs in several minutes. As part of the digitalisation programme, we are seeing many new ideas being introduced to make things easier for customers. On this occasion, it was a chatbot for employees that will enhance customer service. It was an exciting project, but great fun, too.”
Building people-centred relationships harnessing technology and automation is the challenge facing CNP Assurances.
@dèle’s effective customer collaboration (p. 24), Customers take control with Antoine Lissowski and Philippe Van Haecke (p. 26) and a deep dive into AI-augmented advice (p. 28)
“That’s how we first met Aurore and learned about her experience – her husband’s serious accident and what she went through during the subsequent weeks and months while he was in a coma. As well as the sheer shock, she had to handle all the administrative formalities. Insurance was just one of many elements she had to deal with – doctors, supplementary health cover, the hospital, social security and her husband’s employers – while juggling her work responsibilities and sorting out childcare for her daughter. We understand these points on a personal level, but we sometimes lose sight of them as an insurer.” The small team learnt two lessons from Aurore’s experience – there was no clarity
RESULTS La Banque Postale instantly gave its green light to roll out @dèle for its customers. Users have been bowled over by how simple it is to use and by the access they have to specialists, who are always on hand to guide them. The service was immediately extended to other partners, including Credit Immobilier de France, Boursorama Banque and ING Direct.
P. V. H.: In today’s digital age, middlemen are being ousted, and our partnership model is being challenged. A. L.: CNP Assurances’ core expertise lies in building relationships with its partners. So that we can provide them with something distinctive, we need to be able to offer them a wide range of products and services. B-to-C, which makes for smooth interaction with customers, is an example of this. Enabling our partners to deliver an enchanting customer experience is now another of our tasks.
Q: So, to revitalise the customer experience, we also need to change the way we do things internally?
A. L.: The organisation has really bought into this new approach. Our senior management team has drawn up a roadmap and allocated an additional €5O million budget. P. V. H.: We have also set ambitious targets for 2O2O, such as enabling customers to perform 8O% of operations directly and processing 9O% of surrender requests within 72 hours.
The switch from paper to electronic documents, bot assistants, artificial intelligence and omnichannel are four levers for delivering an enchanting experience to policyholders – collaboratively.
Putting customers rapidly in contact with the right person is a never-ending challenge. Given the vast number of our distribution partners and the diversity of our business areas, the public can contact CNP Assurances on 120 different phone numbers! To address the problem, a number of people and departments worked on identifying the various possible customer pathways and guiding them as effectively as possible. The solution is a unique contact platform accessible via a smartphone app, a mobile site and/or on a PC or tablet. It guides customers to the right department without their having to go via the switchboard or a customer service manager so that they can get a rapid answer to their query, even outside normal opening hours. Of course CNP Assurances makes sure customers are not left to fend for themselves with the interface – at any point, they can contact an advisor by phone. The next developments planned are to provide SMS text message access to the platform, display context for the customer service team, add new pathways for more complex queries, and provide enhanced accessibility for deaf customers, using a solution that emerged from the Open Innovation Challenge.
Q: So CNP Assurances is looking to sign up customers who spend a lot of their time online?
A: We are now putting end customers at the centre of all our plans, and are overhauling everything – our products, our partnerships, and our customer relationships, etc. – all at the same time. For example, by acting as rent guarantors for tenants who are not able to tick all the usual boxes, we are building relationships with freelancers and start-up founders, two groups who spend a great deal of time online.
Because customers are online, they have all the information at their fingertips and can make comparisons, they expect a highly personalised solution to be available immediately. And so the whole organisation should build itself around them. That’s the change that is taking place at CNP Assurances.
A: We are going to share our new online expertise with our partners. The acquisition of the Azimut insurtech, for example, will enable us to offer our distribution partners tried and tested digital direct marketing solutions. The acquisition of iSalud, Spain’s leading health insurance comparison site, has provided us with insights into stateof -the-art digital tools for customer prospecting.
That will enrich our partnership-based expertise and accelerate our internal changes.
Key theme: division Division was a leitmotiv in all the discussions, but the division that emerged is not always between generations, socio-professional categories or the various functions of a business as we expected. It is more between those who are capable of adapting to a changing world and those who can’t. The goal is now to help everyone to understand the changes by ramping up lifelong training. In addition, the changing nature of work – with the dominance of salaried employment under threat and the growing prominence of portfolio workers – will entail an overhaul of welfare and support systems, especially with the digital revolution. In the future, social protection is bound to require greater ownership from individuals with a keen sense of collective responsibility. Drawing inspiration from this, CNP Assurances has designed new forms of lifelong cover.
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In 2O17, CNP Assurances was very active on many different fronts, across Europe and in Brazil, pursuing a raft of innovations, partnerships, challenges and commitments.
Spain: €30 million for iSalud CNP Partners, the Spanish subsidiary of CNP Assurances, has acquired a majority shareholding in iSalud, a leading digital distributor of individual health insurance and Spain’s number 1 price comparison site in the sector.
The aim of the deal is to accelerate penetration of the Spanish market by harnessing the expertise and start-up vision of this leading insurtech company. A
Together for seven years CNP Assurances and UniCredit have extended their partnership via CNP UniCredit Vita. Covering its 1,365 branches and UniCredit outlets in central and southern Italy, Sardinia and Sicily, the new agreement provides for the creation of a sales and marketing hub to drive expansion in unit-linked savings, term creditor insurance and individual protection insurance.
Youse’s challenge The 1OO%-digital Brazilian insurance platform of our Caixa Seguradora subsidiary has gained more than 11O,OOO customers since it was launched in late 2O16 and sold around 9OO policies per day in early 2O18. It has achieved its goal of disrupting the insurance market in Brazil.
YEARS Brazil: talks continue In 2O18, CNP Assurances and Caixa Seguridade continued to negotiate the terms of a new and exclusive distribution agreement in Brazil beyond 2O21. It covers personal risk, term creditor insurance, consumer finance and pensions. The new deal will run until 2O41, providing long-term visibility for a large portion of the business conducted through the Caixa Econômica Federal network.
New offering for civil servants Préfon, the leader in supplementary pensions for the public sector with 4OO,OOO members, and CNP Assurances, have joined forces to help civil servants take care of their health and prepare for and enjoy their retirement. They can now access both partners’ products and services to help them in their daily lives via the Préfon Lyfe digital and phone platform.
Plaudits for innovation Flexi G won the Oscar innovation prize at the 33rd edition of the Oscar wealth management awards. Launched in early 2O18 by CNP Patrimoine, this new vehicle enables its partners (private banks, IFAs, family offices and asset management companies) to offer their customers dynamic management of the unit-linked portion plus protection of their capital. CNP Assurances stated its wish to share the award with all its partners, including BPE, which was the first to offer this option.W
And people-oriented, too EasyBourse, La Banque Postale’s online broker, and CNP Assurances launched the appropriately named EasyVie, life insurance policy in early 2O18. The new policy, managed online right through from subscription to redemption, has a choice of two investment approaches, a minimum initial investment of €1,OOO and an attractive price. EasyBourse advisers also provide support and guidance six days a week.
Transformation attentive to needs The way we go about our work on a daily basis is undergoing radical changes with the acceleration in the digital transition, the changing face of business and a constantly shifting regulatory environment. The Dialog programme puts employees right at the centre of our business. Agreements have followed in areas ranging from strategic workforce planning to the quality of work life. Thanks to this people-centric policy,
CNP Assurances was presented with the gold award at the 2O17 VLCH ceremony recognising leadership in human capital. Its training policy won the silver award.
Gender balance accolade At the launch of the Zimmermann index, CNP Assurances claimed the top gender balance prize in the category of businesses with up to 1O,OOO employees. The plaudit reflected CNP Assurances’ long-term commitment and its visible effects. 5O% of its executives are women, 35% of the Group’s top 1OO are women and its governance bodies have achieved near-parity.
Number 1 insurer in the 2O17 Oekom Research rankings Its committed HR policy, universal access to insurance and a general strategy of responsible investment covering over 8O% of its assets put CNP Assurances in first place in the CSR rankings of insurers in industrialised countries conducted by the Oekom Research rating agency.
CNP Assurances continues to develop its business activities, speed up its transformation and launch strategic projects for the Group, with the attentive and unstinting support of its Board of Directors. The Chief Executive Officer is responsible for executing the strategy adopted by the Board. He is assisted in this task by the Executive Committee made up of the managers of the company’s key areas. The Committee plays a coordinating role, giving its attention to all Group-wide issues.
Business momentum concentrated in the highest-margin segments Growth in 2O17 premium income from 2O16
In France, premium income declined 5.9%, but net insurance revenue (NIR) advanced 7.2% thanks to a strong contribution from personal risk/protection.
INVESTED IN SMEs AND MICRO-COMPANIES, Ranked among the top 5O companies in private equity €6OOm INSURANCE POLICIES incorporating an SRI (socially responsible investment) unit-linked fund 187,3OO
The full set of indicators is provided in the 2O17 CSR report.
IN NEW GREEN INVESTMENTS BY 2O21 to help limit global warming by the end of the century to 2 °C
Reduction in the equity portfolio’s carbon footprint (in CO2-equivalent tonnes/€1,OOO invested)
For more details, download the CSR report and the responsible investment report from cnp.fr.
JFCreatives, Hinterhaus Productions, PeopleImages, Tooga, Hiroshi Higuchi, David Lees, Peskova. Acknowledgements: Bibliothèques sans frontières – H4D – MyNotary – Stratumn – Alan – Lydia – Lendix.
Find out more about Youse.fr The fi rst 1OO%-digital rental guarantee.
CNP Assurances | Registered offi ce: 4, place Raoul-Dautry, 75716 Paris Cedex 15 Tel.: +33 (O)1 42 18 88 88 | www.cnp.fr | Groupe Caisse des Dépôts