In 2O18, the Board of Directors studied the social and environmental dimension of our stewardship. A public-sector organisation such as CNP Assurances needs to live up to society’s legitimate expectations in these areas. That’s a very natural concern for us since as a life insurer we have always taken a long-term view. One of our policies in France has been running for 72 years! Hence our burning desire to earn the loyalty of our customers and to commit ourselves to responsible stewardship – with them and for them. For example, by 2O21 we are set to halve our equity portfolio’s carbon footprint compared with 2O14. That’s the commitment we have made and we are well on track to meet it, with our green investments exceeding €1O billion in 2O18.
CNP Assurances’ performance is gaining traction. Which three key figures for 2O18 would you single out? The 6.4% increase in our attributable net profit to €1,367 million reflects the steady improvement in the profitability of our business. The latest increase in the dividend to €O.89 per share illustrates our strategy of creating value for our investors. The growth in our EBIT of 9.1% like-for-like over the 2O16-2O18 period was ahead of our guidance. There are two other indicators of which we are very proud – the €1O billion in green investments we made and our score of 99/1OO on the gender equality index – as they demonstrate our core values as a public-sector operator.
Talking of CNP Assurances’ digital transformation, what’s the latest on that? It’s firmly embedded in our operations and our processes and guides how we approach our business. We use new tools that make our partners’ lives easier and help to boost their performance. We are taking a wealth of initiatives to simplify customer pathways throughout the life of a policy. Our employees think in terms of UX, are conversant with data science, test their designs on customers and innovate alongside startups. Joint decision-making has become a central tenet of CNP Assurances’ working methods.
Everything is changing more rapidly – our lives, our ways of doing things, our risk factors, and so on. How can you keep pace with insurance needs and maintain trust? Our operations on two very different continents provide insights into the latest societal trends at work. Europeans are looking to protect their income for the long haul – hence the importance of long-term savings – and to make up for the reduced coverage of healthcare expenses by increasing their personal risk/protection cover. In France, the PACTE law has shaken up pension and employee savings, so we have overhauled our solutions, and we are bringing our considerable expertise to bear in the debate on long-term care. Buoyed by economic growth, many Brazilians are gaining access to protection thanks to the latest technologies and ways of doing things. That’s how we are remodelling insurance for the future: it will be digital, affinity-based, simple and effective.
EasyVie, the first 1OO% digital life insurance policy, was also entirely shaped through joint decision-making by CNP Assurances and EasyBourse, La Banque Postale’s online broker. Customers complete all the policy administration tasks directly on EasyBourse’s website, from setting up the policy through to obtaining a redemption, including any fund switches and payments. The broker uses a bot that recommends a management style and asset allocation matching customers’ investment objectives, financial position and risk appetite.
“The idea was to design an easy-to-use policy, that is rapid and effective and offers all the features of wealth management policies. It took us fourteen months to come up with a revolutionary new system for managing life insurance policies by enlisting the help of CNP Assurances’ community of testers. Its breakthrough features include electronic signatures, the advisor bot, which draws on the expertise of the Advize fintech, and asset allocations, which LBPAM and BPE assisted with. By working together in agile mode, we were able to accelerate the pace of each other’s digital transformation.”
STÉPHANE CARLES, HEAD OF SALES AND MARKETING, BANQUE PRIVÉE GROUPE CRÉDIT DU NORD
“Being challenged by such demanding partners enabled us to spot areas where their experience fell short of their expectations, and through blue-sky thinking, together we found solutions that CNP Patrimoine committed to implementing within three months.”
How can the growing burden of money-laundering and terrorism financing (AML-CFT) requirements be met without sacrificing the fluidity and personalisation of the premium customer pathway? That was one of the challenges set for the first hackathon in CNP Patrimoine’s history. It brought in six private banking partners, and together they helped build an effective value proposition. Another landmark decision was the creation of a Partners Lab, to keep conversations going and devise solutions piece by piece, moulding a close and high-performance partnership.
“You&Us is an effective, agile solution, and I believe it is a real asset for CNP Assurances. It helped us recruit very rapidly a panel of customers representative of the populations of our Caisses d’Épargne and Banques Populaires networks. By listening to these customers, we were able to confirm certain points, discount certain options and make a decision between two different ways of presenting products.”
Protecting the 2.3 million local government and hospital staff in France is a priority for local authorities. While the larger authorities self-insure, the smaller ones are under pressure from the tightening of the purse strings. To provide another option, CNP Assurances covers employer’s statutory risk (cost of absenteeism not covered by the social security system) for 18,OOO French local authorities in conjunction with brokers, including Sofaxis, the leader in this market. Together, CNP Assurances and Sofaxis respond to between 2,5OO and 3,OOO invitations to tender every year. CNP Assurances offers a fair price, takes on the financial risk and provides innovations, in complementary personal risk, for example. Sofaxis sells and manages the services. They form a first-class partnership that delivers substantial value for society.
“Social protection is not a CEO’s primary area of expertise. With this tool, we can provide him or her with a straightforward, rapid and effective solution there and then. That is exactly what micro-companies and SMEs want, so it is helping Gras Savoye to expand its personal insurance portfolio in this market.”
NON-EXCLUSIVE PARTNERS IN FRANCE 30 wealth management firms Private and retail banks, family offices, a private asset management company and independent financial advisors 247 lenders General and real estate specialist banks, retail network and online banks, consumer finance companies, mass retailers, utility providers and social economy participants 114 social protection organisations Personal risk insurers, mutuals, non-profit organisations, collective insurance brokers
MAJOR BANKING PARTNERS CNP Assurances’ shareholders • La Banque Postale • BPCE Group
It is never easy to lose a loved one, and the numerous administrative formalities can bring additional complications. CNP Assurances’ fully digitalised “e-beneficiary” pathway streamlines life insurance policy payouts. Beneficiaries can complete all the necessary steps online, 24 hours a day, on any platform, and submit all the documents required to set the payout process in motion. Every step of the way e-beneficiaries can draw on support from a tutorial, user guide, chatbot or dedicated hotline, making the process as people-friendly as possible. The solution also saves time, avoids mistakes, speeds up the payout process significantly and tracks progress in real time. The project was designed jointly with customers by a panel of CNP Assurances experts and up-and-coming startups.
“Throughout the project, we thought of beneficiaries and also provided support and guidance for all the employees involved in the service – beneficiary relationship agents, call-centre operators, sales advisors – to make interactions as warm and empathetic as we can.”
It was a light-bulb moment that yielded tremendous insights. Over just two years, we increased our push capabilities and sought to balance the model, involving customers in risk management and sharing out the benefits. Granted, Brazil is less mature than the European market, but today it is showing the way forward.
“We have made real headway in Brazil with our straightforward and attractive products, such as capital-building plans with random draws and our broad range of local distribution channels, such as Caixa branches, a network of lottery offices extending as far as Amazonia, and non-profit partners in the favelas. Twenty years after we first set foot in the country, we now operate the continent’s number one 1OO% digital insurer!”
Almost twenty years ago, CNP Assurances moved into Brazil, and its expansion since then has been quite remarkable thanks to its partnership with Caixa Econômica Federal and its 1OO% Brazilian approach. Its products and services are straightforward, attuned to the local population’s needs and way of life, and are distributed nationwide via its partner’s network, which is as diverse as it is people-focused. The range of solutions it offers has gradually expanded and now extends from savings through micro-insurance to pensions. Recent social development coupled with the benefits of growth has swollen the ranks of the Brazilian middle classes. These factors have also given the population more mature protection needs.
In 2O17, the Group made a major creative leap forward In an effort to disrupt the market completely, it launched South America’s first 1OO% digital insurance company. It built a new team of start-uppers with totally different methods and ways of doing things based in a different city. It also gave the company a new name: Youse. Its first product was a simple motor insurance policy (optional in Brazil) targeting young people in employment. Then it created Youse Friends harnessing peer-group pressure. That is a solution covering groups of friends, relatives or organisation members who take joint control of claims and share out
How can the challenges of longer life expectancy be met? By encouraging employees to set aside more pension savings, which are currently lacking in France: barely €2OO billion, compared with €1,7OO billion for life insurance. It is one of the objectives of the PACTE(1) law. It calls for additional pension savings to become more widespread, simplifies arrangements by harmonising existing options (PERP, PERCO, Madelin, etc.) and makes them more appealing and contemporary through its additional flexibility. Savers need to be able to change policy without losing their tax benefits, pay into their savings throughout their career, transfer their pension if their status changes, and make withdrawals either as a lump sum or as an annuity.
“The reform of the pension savings system has given us an excellent opportunity to engage in a dialogue with our customers and our partners to devise effective solutions together.” THOMAS CHARDONNEL,
“CNP Assurances is calling for universal long- term care arrangements that leave no one by the wayside and do not heap debt on future generations.” LAURE CHÂTEL, HEAD OF THE SOCIAL ECONOMY
6O,OOO outlets 1OO% digital Youse insurance platform of the population less than 23 years old(1)
FOR EMPLOYEES Employee experience optimisation ultimately translates into a superior customer experience. CNP Assurances firmly believes this, and it has launched a slew of initiatives and technological innovations to simplify their task. The chatbot virtual assistant set up
“We are convinced that employee experience optimisation ultimately translates into a superior customer experience. Our collaboration with innovative startups with which we share the same vision is already paying off. The employees who use the virtual assistant on a regular basis have confirmed to us that it makes it easier to access information and frees them up to focus on meeting the needs of their customers.” FRÉDÉRIC FERNIQUE (left), HEAD OF CUSTOMER RELATIONSHIPS, BPCE PARTNERSHIP AND ADRIEN PERRIN (above), HEAD OF CUSTOMER RELATIONSHIPS, LA BANQUE POSTALE PARTNERSHIP
CULTURE OF TESTING The Group’s cultural and managerial transformation is well underway. It is changing behaviours, upgrading its systems and workspaces with experimental building blocks, which are gradually giving rise to a whole new organisation. Multidisciplinary teams jointly shape new managerial practices – from prototyping to implementation – at the Lab innovation, an open space at CNP Assurances’ headquarters. Teleworking and hotdesking have got employees accustomed to the new mobile, flexible and collective ways of working, from coworking to clean desk policies – just a screen, a keyboard, and a mug.
New practices require their own tools and systems. The digital workplace predicated on a unified IT environment enhances employees’ access to connectivity and mobility, while its chatbot and e-learning services boost their efficiency. A new way of working and living together is taking shape, and the transfer of all the teams in the Paris region to the new Issy Cœur de Ville campus by 2O22 will complete the organisation’s transformation.
36O° DIGITAL APPROACH Open CNP’s objective is to open up the Group to startups to help it adapt to the new digital paradigm. Multiple startups have been brought in to support CNP Assurances’ teams, and together they design solutions simplifying insurance. Certain ventures have led to partnerships being formed, so an innovation can be rolled out on a large scale. In other cases, investments have been made via the Open CNP corporate venture capital fund. Seven startups are now part of the CNP Assurances universe. They benefit from the support of the Group’s experts and network of contacts, and, with its teams, they are helping to co-invent the insurance of the future.
“Open CNP enables us to work far more rapidly than usual, to get teams collaborating who are not used to doing so, and to adopt a user experience-oriented approach, for customers and employees alike. It’s a game-changer.“ MAGALI NOÉ, GROUP CHIEF DIGITAL OFFICER AND CHAIR OF OPEN CNP
Stéphan Guenver was one of the first prizewinners of CNP Assurances’ Open Innovation Challenge. He sums up the competition that changed his life in five words.
The idea Give policyholders a way of updating the contact details of the beneficiary(ies) of their life insurance policy in just three clicks and in three minutes at any point throughout the life of the policy.
Your future A new journey is beginning for me with a new position at CNP Assurances!
“The goal was to improve customer satisfaction.” We took four months to firm up an idea, develop a prototype and create a set of specifications.” STÉPHAN GUENVER, CUSTOMER EXPERIENCE AND INFORMATION SYSTEMS
OVERVIEW OF CNP ASSURANCES’ AREAS OF EXPERTISE Insurance is a business with staying power, but the jobs it offers are changing. Today, actuaries can no longer solely base their calculations on past claims experience. They have to explore new attitudes to risk and use data to predict behaviours. The huge amount of information available to customers and the development of brokerage platforms have turned commercial relationships on their head. Demand shapes supply and the resolution of problematic situations is the starting point for fresh innovation, and we are even more attentive to the needs of all our customers – both policyholders and partners. The regulatory revolution has raised profitability requirements, while the digital transition is transforming how we work. The overall effect is to rejuvenate and enrich every individual’s skill set.
Marketing and communication Branding, press, social media, strategic watch, studies. The UX/UI(1) specialists nurture customer feedback to co-design new user pathways.
Actuarial studies, statistical models Technical studies, statistics, data exploitation: this is where data scientists come in.
Human resources Recruitment, competency development, transformation of jobs: the challenge of providing support.
Try out new things, create, develop: everyone helps drive innovation and takes ownership of their own development.
The days of working in isolation are over. Collaborative work spaces, agile project management, social media are the new norm: cooperation is the byword.
Transformations are disrupting habits and ways of thinking. To stay in the running, you need to be able to deal with uncertainty.
Performance and organisation Agile, participative, collaborative projects and processes, digital workplaces: continuous transformation.
Asset management Financial engineering, asset/ liability management, front and middle office: long-term vision a priority.
“CNP Assurances’ expertise in risk prevention was a decisive factor in building the well-being component of our Youth Challenge programme. Today it works with 7,OOO young people and aims to increase this to 15,OOO by 2O21.” LAURENCE PICCINI, CHIEF EXECUTIVE OFFICER OF THE UNITED WAY L’ALLIANCE
“The boost we got from the CNP Assurances Foundation was as discreet as it was vital for the rhythmic gymnastics section of the Ballainvilliers sports association (ASBGR), which endeavours to give neuro-diverse children a chance.” CHRISTOPHE COURBOT, PROJECT LEADER, SOCIAL ECONOMY MARKETING
IN LIFE CNP Assurances’ employees also volunteer in their spare time, and the CNP Assurances Foundation supports their projects, such as special gym classes for children with learning difficulties and/or mental health conditions. Disability gymnastics, which can be either acrobatic, rhythmic or choreographic, helps to improve their motor skills, independence and confidence. To date, seven children with autistic spectrum disorders have reaped the benefit of these facilities and classes, and the non-profit organisation is raising its targets for the next season of sessions.
3 more1No. 3OO,OOO That is the average number of life insurance policy beneficiaries that, in any one year, have to complete complex formalities following the death of a loved one. CNP Assurances’ online e-beneficiary service provides support for them at what is already a difficult time. That’s a first in the insurance world.
in employee savings originating from the public/ private and mutual sector, formed through a merger between the expertise and resources of Humanis (55%), CNP Assurances (3O%) and AG2R La Mondiale (15%). Capitalising on three years of collaboration and close to 59O,OOO savings accounts, the three groups will build and distribute together an employee savings range that champions its social economy values, providing an alternative to the bancassurance world.
Expanding range of services CNP Assurances has forged a growing number of partnerships to boost its digital health services portal. Point Vision, an ophthalmology specialist, gives Lyfe users rapid access to eye care in 25 centres across France. Goalmap, France’s no. 1 well-being coaching app, supports people all the way so that they stick to their resolutions.
Ma Santé A first for Amétis The first healthcare range for individuals distributed by Amétis, CNP Assurances’ employee network, has all the ingredients for success, including a customisable level of cover for each area of healthcare, access to the Lyfe health portal and to the Group’s assistance services at a highly competitive rate, plus the local support provided by the 22O advisors in the Amétis network.
Kiwi boosts unit-linked products Wealth management clients do not like to be kept waiting. CNP Patrimoine is making its Kiwi UC unit-linked system available to its partners. Securities eligibility requests and electronic subscription can be processed instantaneously using it. That should provide a real boost to CNP Patrimoine’s new inflows, which were a very healthy €2,158 million in 2O18, 44.1% of them unit-linked.
I Italy m or e co un tri es for CNP Santander Belgium and the Netherlands are the latest additions to the subsidiary’s scope, which now encompasses 12 countries in Europe (Germany, Poland, Italy, Spain, Austria, Portugal, Norway, Sweden, Denmark, Finland, Belgium and the Netherlands) with a range of personal risk and consumer finance term creditor insurance solutions.
The Gold Argus award for affinity insurance was bestowed in 2O19 on Youse Home, the rental guarantee, which squares the needs of tenants with those of landlords. It was designed by Youse Europe, a CNP Assurances startup.
99/1OO Gender equality CNP Assurances’ score on the gender equality index, with top marks on almost all the indicators used, reflects its unstinting commitment to combat pay inequality between men and women and to diversity.
in the bond markets The successful placement during 2O18 of €5OO million in undated subordinated Restricted Tier 1 notes and during early 2O19 of the same amount of ten-year subordinated Tier 2 notes is a testament to the quality of CNP Assurances’ name and institutional investors’ confidence in the Group’s financial strength. The proceeds from these two issues will be eligible for inclusion in Solvency 2 regulatory capital.
Efforts to combat money-laundering and the financing of terrorism are a top priority for CNP Assurances. Nonetheless, an inspection revealed regulatory requirements had evolved more rapidly than the prevention framework put in place in 2O14. The fine handed out by the ACPR(1) to CNP Assurances in 2O18, without suggesting any fraud, focused the Group’s attention on this area. Training and awareness-raising for all employees, industrialisation and automation of the entire framework, controls on distributors, customers and their transactions have now been added to the framework.
The seventh investment by Open CNP, the Group’s corporate venture capital programme, was in YesWeHack. It harnesses collective insights (from over 7,OOO cybersecurity experts in 12O countries) to help businesses protect their websites, apps, infrastructure and connected objects. In mid-2O18, CNP Assurances joined the YesWeHack platform and established its Bug Bounty programme to reward any member identifying a security flaw in its systems.
The key figures for 2O18 illustrate the shift in CNP Assurances’ product mix and underpin the three core pillars of our strategy – customer service quality, the development of our partnerships and returns for our investors. (Source: CNP Assurances 2O18 annual results.)
€O.89 up 6% CNP Assurances aims to pay out a stable or increasing dividend.
(2) This indicator measures operational efficiency in terms of administrative expenses. It is calculated by dividing administrative expenses by net insurance revenue. A lower ratio indicates an improvement in operational efficiency.
CNP Assurances continues to develop its partnerships, 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 Group’s key areas. The Committee plays a coordinating role, giving its attention to all Group-wide issues. The consistency of the Group’s strategic management is underpinned by the fact that at least one Executive Committee member sits on the board of directors of the main subsidiaries in France and at least half the directors of subsidiaries outside France are appointed by CNP Assurances.
Yves Couturier Deputy Chief Executive Officer Open model customers & Social protection and services
Find out more about Youse.fr The first 1OO% digital rental guarantee service.
Strategic Marketing, Communication and Sponsorship department Design and production: Illustrations: Wood/Agence Virginie; photo credits: Aldo Sperber; Getty Images: milan2099 – Todor Tsvetkov – Maskot – Gilaxia – Paul Biris.
CNP Assurances | Registered office: 4 place Raoul Dautry, 75716 Paris Cedex 15 Tel.: +33 (O)1 42 18 88 88 | www.cnp.fr | Groupe Caisse des Dépôts