# Ten people have asked us questions. Here are our answers. This year, CNP Assurances has decided to allow its stakeholders to speak, to hear their questions on who we are and what we can do for them. An insured, the boss of an SME, a Web editor, a university professor, executives from Paris and Hamburg and the director of human resources of a large company have asked us challenging and though-provoking questions.
Conversation with Jean-Paul Faugère, Chairman of the Board of Directors and Frédéric Lavenir, Chief Executive Offi cer P. 42-47
Distribution of our partners’ points of sale and in 17 countries
In pensions, personal risk and protection and health, CNP Assurances provides made-to-measure collective solutions. Thus, it indirectly protects the members of more than a hundred mutual companies and provident institutions, the employees of 4,600 businesses and the officials of 20,000 local authorities. The new partnership signed at the end of 2015 with AG2R La Mondiale, in order to create a leading player in additional pension savings, proves the vitality of the CNP Assurances multipartnership model.
Marie-Odile Risbec Support manager, insured and Banque Postale network CNP Assurances does not market the products, but designs and manages the contracts throughout their lifetime, from the inception of the insurance to all the acts of management required to help people get on with their lives: unexpected life events, completion of a project, conveyance of property. We answer letters, e-mails and telephone calls from our insured, via our dedicated platforms, and this enables us to get to know them well. Customers are increasingly canny when it comes to finance and monitor closely how their money is doing. They want to be able to check online the value of their unit-linked contracts, for example. Computers add to their demands in terms of information and responsiveness, but what they appreciate most is human contact.
The increasing speed of digitisation brings CNP Assurances ever closer to its end customers, the insured. Its digital platform, Lyfe, is the development of an innovative concept of services made available to its partners and customers for their members, insured, and employees, so that everyone can take control of their own health, with personalised health coaching, fast and efficient arrangement of medical appointments, etc. This is proof that CNP Assurances responds to the multiple changes affecting the life of its insured.
1OO% ONLINE TERM CREDITOR INSURANCE WITH ITS TWO LEADING ONLINE BANKING PARTNERS
Throughout the lifetime of the contract, CNP Assurances is at the insured’s side. As a pioneer in loan insurance with its two 100% online banking partners, the company is also committed to the fight for the “right to be forgotten” for loan applicants that have suffered a serious health problem. The number of insurance policies that it refuses (0.2%) is also one of the lowest on the market. In personal risk and protection, dedicated teams organised by each partner manage claims in as short a time as possible. In life insurance, support services for the insured answer their questions and assist them throughout the lifetime of the contract. A dedicated service based in Angers searches for the beneficiaries of unclaimed life insurance contracts with the help of professional investigators. The Amétis commercial network of 250 advisers employed by CNP Assurances was
Q. no. 2 Can the employees of an SME dream of the protection provided to those of large companies?
Valérie Mabilat Head of the company Espace Paysage Bourges, France 1604340_CNP_RA_GB_2015.indd 6 13/05/2016 14:57
In 2015, companies took out compulsory cover that exceeded the basket of minimum protection
The partnership with the BPCE Group that was renewed on 1 January 2016 has a strategic health and collective personal risk and protection component. It makes CNP Assurances responsible for covering the needs of many companies with more than 20 employees that are customers of the BPCE bank networks (Banques Populaires and Caisses d’Epargne). Having regard to the fierce competition. Having regard to the fierce competition, it was a real challenge to implement the additional health cover offer in a personalised way for this qualified target, throughout France and in the shortest possible time. The multi-partnership and multi-channel formula of CNP Assurances played a significant part.
CNP Assurances has secured the expertise in distance selling and in management of the wholesale broker Alptis Assurances, an expert in welfare protection, to assist with the marketing of its additional health cover offer on behalf of the banks in the BPCE Group. By coordinating the various parties involved via their joint platform Capvita, it has increased the fluidity of the customer process in all channels, from identification of eligible SMEs to first contacts, from appointments with the Amétis adviser to the management of additional health cover for each employee.
Since autumn 2015, CNP Assurances has tested the mechanism with 1,000 customers of BPCE Group banks, and has refined its processes to guarantee the quality of the experience from start to finish, including indicators to measure commercial effectiveness. In 2016, the implementation of additional health cover offers to the portfolio of professional customers of the Caisses d’Epargne and Banques Populaires will be speeded up.
from SMEs to large CAC 40 customers put their trust in
CNP Assurances for personal risk and protection insurance, and for the pensions cover of their employees local authorities and hospital authorities have chosen
Thomas Béhar Group technical director, chairman of the Society of Actuaries The “Solvency II” standards oblige insurance providers to constitute prudential reserves, with regard to their businesses. They are unsuitable for pension activities, which by their very nature are very long-term and carry no liquidity risk. The profession is fighting for made-tomeasure regulations applicable to collective contracts dedicated to pensions so as to promote long-term saving and to preserve the purchasing power of future retirees. Specifically, CNP Assurances is in favour of the transposition into French law of the European directive on institutions for occupational retirement provision.
The importance of innovation Faced with the complexity of pension schemes in France, with its 35 distinct public and private schemes, CNP Assurances provides solutions adapted to each situation in order to make life simpler for the insured. The Group comes up with solutions in response to a wide range of problems, such as savings dedicated to health cover upon retirement, and services that promote prevention. The increasing importance of digitisation is changing the way people work and inspiring new support services at CNP Assurances that are more accessible to everyone, more interactive and more easily tailored to individual requirements.
BILLION PAID FOR ADDITIONAL PENSIONS IN FRANCE, A SIGNIFICANT INCREASE (EXCLUDING LIFE INSURANCE)
of additional pensions in France, and the leading additional pension provider AGIRC-ARRCO, confirms CNP Assurances’ intention to position itself in this sector with a major social dimension, and to be a very long-term player. The joint subsidiary, Arial CNP Assurances, provides the expertise and handles the portfolios, and becomes the leading player in additional pensions, with €12 billion under management. It strives to offer companies and their employees the best services to secure their income, to preserve their purchasing power and to access quality care after their active working life is over.
Distribution of payments made via the three stages of the pensions system in France (€308 billion)
Q. no. 4 Life expectancy is increasing, but how can one live well and for a long time?
Home help, advice on prevention of health problems and return to work support, the services developed by Filassistance International, a subsidiary of CNP Assurances and Swiss Life, reinvent personal risk and protection cover. They provide tangible added value to the insured as of the subscription of their contract and bring them closer to their insurer. With its platform active 24 hours a day and its network of 10,000 professional helpers, Filassistance goes further in combining human with digital, in order to create a community around the individual. A box installed in the dependant’s home acts as an information exchange platform for all family members and professionals involved, and allows the connection of connected objects. The multiplying effect of social networks can also be of benefit for the listening process, and for providing advice and expertise. The digital community of helpers strengthens the human ties around the patient, and when a travelling grandson posts pictures that appear directly in the digital picture frame, conviviality takes a huge leap forward. This integrated, adjustable and upgradable solution is especially suitable for the elderly and frail people, or for people with a temporary or permanent disability. It prefigures the evolution of on-the-spot assistance, thanks to digital systems
Marie Bazetoux CEO of Filassistance International and Garantie Assistance Our Fil@ttentive home help offer innovates by combining the human and the digital. It provides a complete and integrated solution to facilitate the life of family helpers: reassuring them in the event of an incident, but also supporting them in the day-to-day management of their dependant. In addition to the traditional system of remote assistance (panic button and telephone platform), Fil@ttentive provides an application to put helpers in touch with each other, enabling the organisation of a digital community of helpers. The addition of connected objects depending on need (fall detection equipment, pill dispensers, smoke detectors, digital photo frames, etc.) completes the measures.
In order to make a difference in a personal risk insurance market that is increasingly regulated and increasingly competitive, CNP Assurances has decided to renew its positioning. The idea is to supplement the approach of providing assistance at the time of unexpected events with an approach providing services at any time of a customer’s life. This is the role of the Lyfe digital platform created by CNP Assurances. Implemented in test and learn mode, Lyfe was first made available to one company and one mutual only, representing 11,000 users, in a preliminary version limited to three services. For its official launch at the end of 2015, it offered five services with high added value: 24-hours a day online health advice, personalised remote coaching based on 500 criteria, arranging scanner and similar appointments at very short notice, preparation of detailed personalised medical reports within half a day, or diagnosis of the home support services for a relative losing their independence. With new services being added to the platform every three months, CNP Assurances is aiming to provide 15 services between now and 2017. True to its values, the Group intends to contribute to the fight against health inequalities and against medical nomadism, so costly for the community, by facilitating access to sound information and e-health tools. CNP Assurances offers its Lyfe platform to its distributor partners, led by mutuals, and to businesses and local authorities, with the possibility of selecting the services of interest to them and of tailoring the content to suit their image. The ambition of CNP Assurances, which intends to play a central role in the new health situation in France, is to encourage as many people as possible to adopt the Lyfe approach, or even to develop a range of services independent from any insurance contract, so that everyone can preserve their own health capital.
While CNP Assurances is well known for its offers to consumers of funds in euros, the successful launch of its CNP One range, which features all the best standards of the high-end market, proves its expertise in unit-linked savings products. Its partnership with QIS, an expert in the management of high-end contracts, gives it the necessary agility to satisfy these customers. An interactive application can be used to directly obtain an agreement in principle and a commercial offer. An online subscription and management tool speeds up the processing of applications, and makes operations more secure. The opening of a Luxembourg subsidiary at the beginning of 2016 will supplement its savings offer and the multipartnership strategy guarantees its long-term presence on this market. The results have been a success. In two years, CNP Patrimoine has established about twenty distribution partnerships with private banks such as Neuflize OBC and Edmond de Rothschild, and with the benchmark platform of independent wealth management advisers, Nortia. The wealth management business with both historic partners has increased drastically. Banque Privée 1818 from the BPCE Group collected more than €100 million in 2015, trebling its usual level of business. At the same time, the assets collected with Cachemire Patrimoine by La Banque Postale doubled, and the partnership, which has been renewed for ten years, is planning to extend the scope of its wealth management bank BPE.
François Guilgot Director of partnerships, CNP Patrimoine What undoubtedly makes the difference, is the experience of our partners and their customers. We adapt our products and services to their specific requirements, we give them the ability, with a few clicks, to obtain our agreement in principle on a commercial offer, and we provide them with the services of a second-to-none back office. Finally, we have opted to digitise the processes between all those involved. This is “the” solution to simplify subscriptions, make the management of contracts more secure and increase one’s responsiveness. Our partners now demand this quality of service, which is virtually irreproachable.
Wealthy customers want to invest in complete security, but find it more and more difficult to access life insurance in euros due to the low rates. The new eurocroissance type offers on the market provide security on between 70% and 100% of the capital on an eight to twelve year-long term. In order to boost the attractiveness of life insurance, CNP Assurances has come up with an innovative formula. It allows the investment of 65% to 75% in a traditional euro fund and the remaining 25% to 35% in a diversified unit-linked compartment, while benefiting from a 100% guarantee of the capital over a time horizon of four years. This solution met with outstanding success with the partners of CNP Patrimoine and satisfied the expectations of institutional investors, foundations and associations in particular, for whom security is paramount. On the other hand, asset management companies and individuals want to have more flexibility in the management and choice of their unit-linked products.
CNP Assurances has refined its offer. Called Flexi Sérénité, it has become more adjustable in order to satisfy the expectations of both partners and customers: with periods of cover of two to five years, as much as 25% to 50% in the unit-linked compartment and access to more dynamic unit-linked products (volatility of up to 12%). The adaptability of the options results in the reasonable adaptability of the cover provided by CNP Assurances, which covers between 95% and 100% of the capital. The offer has multiple combinations which prove CNP Assurances’ flexibility, and its determination to set the path in high-end savings.
Q. no. 6 You are a large European group, but what do you offer specifi cally to the German market?
John Semler Chief Executive Officer BauFi Secure Hamburg, Germany 1604340_CNP_RA_GB_2015.indd 22 13/05/2016 14:57
Jean-Christophe Mérer Director of CNP Partners, Spain With CNP Partners, we intend to speed up our development in Southern Europe (Italy, Spain and Portugal) with a resolutely multi-partnership and multi-channel model. We have a servicing subsidiary, a call centre answering in six languages, four associated insurance branch offices and 200 employees. Our two key development targets are wealth management, in particular in Italy, and personal risk and protection insurance. We use partners in bancassurance, private banks and brokers to distribute these products, and we will continue to experiment with “100% digital” direct sales in Spain.
Strategic co-construction in Germany €18O BILLION IN PROPERTY LOANS ARE GRANTED EVERY YEAR IN GERMANY, ONLY 3O% OF WHICH ARE COVERED BY INSURANCE
The European profile is in line with the Group’s strategic policies. In 2014, more than 50% of the Group’s revenue was made up of pension savings in euros. In 2015, nearly 72% consisted of unit-linked pension savings and in personal risk and protection.
In 2016, CNP Assurances confirms its commitment to wealth management in unit-linked products and to personal risk and protection. Along with Santander Consumer Finance, the Group is working on a distance-selling strategy for personal risk and protection products, which will capitalise on the relationship of trust created around credit. The development of term credit insurance via new banking partnerships remains a priority. Experiments with digital distribution will also be conducted in Spain and Germany using the term credit insurance model that was a success in France, including electronic signatures.
of the assets managed by the Group are subject to ESG criteria, or 81%
Mikaël Cohen Director of Investments When you invest, you take on a responsibility. Our awareness of the length of our commitments to our insured, over ten, twenty or even thirty years, leads us to take into account all the long-term risks, and in particular climatic risks and their macro-economic consequences. The decarbonisation actions that we take reflect our commitment to be a socially-responsible investor, in line with our financial risks policy. Our approach is not only to disinvest, in order to protect ourselves from risks, it is constructive: we invest in companies and projects which contribute to combat climate change, and in that way find sources of growth.
This new policy has resulted in CNP Assurances measuring the limits of the carbon footprint. This indicator, which is the only one that currently enables the aggregation of the CO2 impact of the whole portfolio, only covers companies’ direct emissions and does not count the positive impact of their activity. In fact, it is possible to invest in an industry that emits carbon to produce insulating materials, which will avoid substantial CO2 emissions by reducing energy consumption. CNP Assurances supports the search currently underway for methods including this concept of avoided emissions, and contributes to the industry discussions, for a global reading of the contribution to the energy transition.
Q. no. 8 Insuring all our futures is fi ne, but what do you do for those who do not fi t the criteria?
are members of the interactive community created by CNP Assurances online of a popular insurance product have been sold in
There are 14.1 million “digital natives”, and in seven years they will represent half of the working population and half of total incomes. Channelhoppers, travellers, promoters of sharing and setting great store by responsible behaviour, they are multi-connected. In order to get to know this generation better, its behaviours, its customs and its aspirations, the Group has created an interactive observatory, and is immersing itself in their day-to-day lives. They have new expectations: how to protect themselves against the theft of their data and digital objects, how to insure their car sharers, their exchanges of apartments, their objects and services, and allow them to test out new activities? In order to provide the right answer, CNP Assurances has decided to co-construct and test previously untried solutions with these new generations, through an online community platform. 400 members, students, young workers, self-employed and odd-jobbers are designing the future offers of CNP Assurances, adapted to the new ways of consuming, working, occupying, travelling and living.
Sophie Wittmer Manager of the Digit#Alizé project The driving force of the new generations is movement and creativity. They move quickly and only trust in themselves. What is the point in designing products which are not of interest to them? Can one still create standard insurance products for all, when everything functions by affinities? Giving them confidence means simplifying their day-to-day lives and sponsoring their projects with bespoke offers and services. More local, more transparent and more interactive with the new generations, that is the challenge for CNP Assurances.
Olivier Pastré Professor of Economics at the Paris VIII University, member of the Cercle des économistes Paris, France 1604340_CNP_RA_GB_2015.indd 34 13/05/2016 14:57
After years of growth described as a “miracle”, the slowdown of the Brazilian economy is having a big impact. In 2015, the recession amounted to –3.8% and the fall in the real has affected the accounts, but CNP Assurances has confirmed its very attractive growth dynamic. Looking ahead, the Group still has reason to believe in this country’s future. With a population of 203 million and 25 urban areas with more than one million inhabitants, Brazil has the world’s 7th largest GDP. Every year, new Brazilians join the ranks of the middle class and shop for consumer goods. Through its established partnership with Caixa Econômica Federal, the 2nd largest state bank in the country, CNP Assurances is launching a 100% digital insurance company that will change the face of insurance.
The commercial investments made to relaunch the savings business resulted in pensions outperforming (+46%). At the end of 2015, the mix of the subsidiary was 80% in personal risk and protection and 20% in savings, 97% of which being unit-linked. The Caixa brand, with its very high profile, is one that definitely has the confidence of Brazilians. Based on their acquired knowledge, the complementary nature of their know-how and their shared strategic vision, the two partners have embarked on the digital journey.
Q. no. 1O CNP Assurances is one of the champions of the world of private equity, is this opportunism or a sustainable strategy?
In order to immerse itself in the digital world, CNP Assurances launched its own corporate venture programme, Open CNP, at the end of 2015. The idea is to establish partnerships with innovative start-ups to help them to grow, while opening itself up to alternative customs, alternative technologies and alternative models. Open CNP capitalises on the experience it has acquired with private equity funds and puts the start-ups that it supports in direct contact with the operational services of CNP Assurances, in order to invent new customer experiences.
Open CNP illustrates CNP Assurances’ ability to absorb new ideas from the world of agile, innovative start-ups, with no hang-ups. The programme has only been going for a few months, but a certain number of innovations have emerged very quickly. Thus, the e-health platform Lyfe is based on a start-up from Bordeaux which lists physicians. A win-win partnership which goes well beyond investment and financial performance, and is of benefit to a large number of people.
For three years, you have been working on the transformation of CNP Assurances’ financial model, what’s the latest on that?
The success of CNP Patrimoine, the opening of our Luxembourg subsidiary, the mobilisation of our employee network Amétis and the increasing impact of our remote platform Alptis, dedicated to health, will further reinforce our multi-partnership and multi-channel model. This model is perfectly suited to the confi guration of the market, because it enables us to contact our customers using different channels and to monitor changes in behaviour more responsively.
J.-P. F. “Diversifi cation” is the watchword for the evolution of our model: diversifi cation of geographies, of products, of distribution channels, of partners and of risks… Our expertise, the reputation of our staff, a constantly renewed dynamic of increasing competitiveness, the strength of our brand and our agility, make CNP Assurances a responsive player on all markets.
F. L. Whether one is talking about the young people of Generation Y, about entrepreneurs and independent workers, or about multi-business employees, the new situations give rise to new needs: we have to come out of our technical bunkers and ensure that the customer directs the construction of our products and services. The digital era provides us with an unprecedented opportunity. It makes the roles of producer and distributor more permeable and allows the development of direct relationships with customers, while providing more value to our partners.
In fact, the digital transformation is speeding up. Tell us about the digital dynamic of CNP Assurances.
F. L. Our digital strategy is ambitious. Our investments are growing rapidly, from €25 million in 2015 to nearly €60 million in 2016. The fi rst results are promising. Some improve the effi ciency of our partners, such as the total computerisation of the credit insurance customer experience, or the extranet at the point of sale of consumer credit with Santander. Others open up the prospect of entering the BtoC world. Our digital company in Brazil, which will be launched next summer, is born digital and extremely innovative in its customer approach, its products and services and its processes. We will not stop there. We have created the Open CNP programme to identify, among the start-ups in which we invest, those with which apart from fi nancing, we would like to build a closer partnership to invent new customer experiences.
For the first time, the Group has committed to financial targets for the next three years. What is the basis for this confidence?
J.-P. F. The Board of Directors thinks that following the renewal of our two major partnerships in France, we have a duty to be clear with our shareholders about our ambitions. Our message cannot be limited to highlighting the quality of our past results. We must also look to the future. Especially since the current dynamic gives us every reason to be optimistic.
Structure of shareholdings in CNP Assurances as at 31 December 2015
Distribution of premium income by geographical areaby segment * Personal risk and protection, health, term credit and property and casualty insurance.
In 2015, the business progressed steadily and the results were robust during a transformation phase for the Group. The business and the results continued to progress steadily in 2015 against a background of low interest rates and in spite of the fall in the real. In 2015, the transformation of the Group continued, in line with the strategy announced in 2013. In 2016, the evolution of our multi-partnership business model will accelerate and our digital strategy will be affi rmed.
Income on own account was virtually stable at €774 million (+4.6% at constant scope and exchange rates).
Attributable Group net profi t €1,13O million +10.7% at constant scope and exchange rates
This coverage rate refl ects the strength of the Group’s balance sheet.
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Credits: April 2016 – CNP Assurances – Communication and Strategic Marketing department Design and production: Photo credits: Aldo Sperber, Laurent Villeret/Picturetank – Franck Juery; Trotta et Sanchez; Antonio Pedro – Getty Images/Thomas Barwick, Altrendo images, Westend61, Cornelia Schauermann, Marcel Jolibois, Chad Springer, Fabrice Lerouge, Kid stock, Jupiterimages, Stefanie Hiebl, Michael Pelling/EyeEM, Tetra Image-Erik Isakson, Jag Images, vgajic, Herol Images – Offset.com/Tetra Images, Erin Oveis Brant, Maskot, Yadid Levy. Printing: Relais Graphique – using paper from sustainably-managed forests (FSC). Ref.: CNP/2016/RA2015/KM