TOGETHER WITH OUR PARTNERS, WE ARE REINVENTING PROTECTION TO DEVISE TAILOR-MADE SOLUTIONS FITTING EVERYONE’S NEEDS.
“The insurance sector cannot afford to be left behind by a rapidly changing world.” JEAN-PAUL FAUGÈRE,
The insurance sector cannot afford to be left behind by a rapidly changing world. For example, the French PACTE law on business growth and transformation has made further changes to the legal framework in which we operate. It has created opportunities, which we will need to harness, including measures to promote pension savings.
Over the past twenty years, we have undergone a transformation. Our market capitalisation has risen from €3 billion to over €13 billion. Our net profit has surged from €275 million to close to €1.4 billion. Our expansion into Brazil and Europe has given us a truly international dimension. Challenges lie ahead for us in the future. Yet we have every reason to believe that CNP Assurances will be able to rise to meet them. Our multi-partnership model keeps us agile. We have first-class human resources. And we have a proven ability to innovate.
2O19 will be a crucial year in our development. Our public-sector shareholders have announced changes in the ownership structure of the investments they hold in CNP Assurances. Their goal is to make our Group part of a public-sector powerhouse led by Caisse des Dépôts, with La Banque Postale taking control of CNP Assurances within this new structure.
This plan will deepen our existing partnership with La Banque Postale. At the same time, they have reaffirmed their commitment to our multi-partnership strategy as the key driver of our future growth. As a result, we will continue to create value for all CNP Assurances’ shareholders and for all our customers.
How is CNP Assurances’ longstanding multi-partnership model performing? It’s moving full steam ahead – on every continent where we have a presence. Our two major partnerships with La Banque Postale and the BPCE Group provide a quantitative and qualitative framework for our developments in France, and our 3O wealth management partnerships are going from strength to strength. The CNP Santander partnership now extends to the Netherlands and Belgium, lifting the total number of European countries it covers to 12. The recently renewed partnership with UniCredit in Italy has got off to a flying start. In Brazil, the outstanding success of our partnership with Caixa Econômica Federal, dating back to 2OO1, has been a major factor in discussions about an extension. In an age of digital technology and disintermediation, CNP Assurances’ multi-partnership model makes it agile and nimble.
We work with our partners to design insurance tailor-made to meet their customers’ every need, and we create tools and systems that make everyone’s life easier. Partnership is hard-wired into our DNA, and it underpins our effectiveness in a changing world.
1OO% digital €4 million in premium income in year 1 3O% unit-linked
“This lab allows us to express ourselves and to work together on a 36O° basis while meeting our needs and those of our insurer partner. This shared vision enables us to improve pathways for our employees and, critically, also for our customers, while meeting our obligations.”
Launched in 2O17, the You&Us community has 3OO active members representing three generations of the French population – baby boomers, and generations X and Y. Whether existing or prospective customers, they have all volunteered to evaluate innovations, test out cover and tools, online or at the Group’s headquarters among staff, and reinvent personal insurance with CNP Assurances and its partners.
CNP Assurances’ strengths 5O years’ experience of local authorities and innovation
SIMPLIFYING ADVICE TO SMEs How can the thousands of micro-companies and SMEs with 1 to 3OO employees be protected effectively, rapidly and simply? That was the challenge that CNP Assurances’ Digital Factory addressed in collaboration with a group of brokers. From this, the idea was born of creating a system to support the sale of collective supplementary health and personal risk insurance. Digitalis can model prices directly and print out a made-to-measure proposal with just a few clicks. And its feature set continues to evolve, with the addition of electronic signature functionality so the policy can be set up on the same day. It enhances the efficiency and image of CNP Assurances’ broker and mutual partners.
ANTHONY BILLET, HEAD OF SME SOLUTIONS ÎLE-DE-FRANCE CENTRE & NORTHERN FRANCE GRAS SAVOYE
The link-up between the Malakoff Médéric and Humanis groups has formed France’s leading provider of social protection. It boasts a 17% share of the collective health insurance and personal risk market, and a unique sales force of 1,8OO people. Its customer acquisition and retention goals are commensurately ambitious, with cross-selling as priority. That’s where CNP Assurances’ Amétis employee network comes in. Malakoff Médéric Humanis has given it responsibility for securing the loyalty of a portfolio of micro-companies and CEOs by harnessing CNP Assurances’ individual protection policies, which dovetail perfectly with the consortium’s collective solutions. The close to 2,OOO meetings arranged in 2O18 by Amétis advisors and the conversion rate they achieved support the goals for this landmark relationship-based partnership for CNP Assurances, which holds great potential for the future.
“What makes us the preferred partner of our non-salaried worker and SME executive customers is the quality of our protection solutions and, crucially, the personal relationship you are able to forge with them, and that’s where CNP Assurances’ Amétis advisors really stand out.”
“In Italy, people have always turned to their family in hard times. We have a tremendous challenge ahead of us: creating the personal risk market together.”
“This partnership is strategically important for extending UniCredit’s leadership in Italy’s bancassurance market.”
Subsidiaries around the world • In Brazil, with Caixa Econômica Federal • In Italy, with UniCredit • In 12 European countries, with Santander Consumer Finance
CNP Assurances has built an original business model for bancassurance based on long-term partnerships with major banking groups in France and worldwide. Combining insurance expertise with a local presence, it is a model that has proven its effectiveness and agility over the years. The Group has also established non-exclusive partnerships in the wealth management and term creditor insurance markets, and a made-to-measure model for social protection organisations.
26.4% La Banque Postale, exclusive partnership until 2O25 22% BPCE, partnership until 2O22 16.8% Caixa Econômica Federal, exclusive partnership until 2O21 1O.4% UniCredit, exclusive partnership until 2O24
Consumer Finance, exclusive partnership until 2O34 1.9% Non-exclusive international partners 1O.8% Lenders and social protection organisations, non-exclusive partnerships
The next step… CNP Assurances is working on ironing out any remaining kinks between the various parties involved – the town hall, the funeral director, the notary, the tax office and insurance companies’ investigators.
Every aspect of the e-beneficiary pathway given close scrutiny “We adopted the fully immersive Inside Customer Experience approach in which beneficiaries and employees are brought together to listen to each other and discuss ideas, all with a view to articulating the best possible pathway together.”
“UX designers step into the user’s shoes and create the online pathway. At every stage, they ask themselves: Is the layout as intuitive as it possibly could be? Can the steps be easily understood by a non-specialist? Is the visual interface simple and user-friendly?”
“The chatbot provides beneficiaries with the first-level answers very rapidly. The younger generations use it as a search engine, simply by entering key words, and it works!”
“When a loved one passes away, a whole ecosystem needs to be taken into account if we are to live up to our goal of putting people first.” VIRGINIE MORREEUW, PROJECT MANAGER, CUSTOMER EXPERIENCE AND INFORMATION SYSTEMS
the savings, which can reduce the premium by up to 5O%. In the space of a year, the number of communities created tripled to 1O,OOO groups.
Funding long-term care is a related challenge for mature countries. The French Government has announced reforms in this area for year-end 2O19. CNP Assurances is a very active participant in the debate and advocates mandatory long-term care insurance for everyone in France, a solution reconciling the needs of the generations. A very modest contribution (between €1O and €15 per month) would cover the monthly amount of €5OO that is not reimbursed, halving the average cost.
Sharing risk across a very large population definitely makes insurance more attractive. However, personalisation and relationships are the future. The wealth of customer data analysed in minute detail by artificial intelligence will make it possible to predict claims experience more accurately. Insurance can then be better tailored to a changing world and the needs of every customer met more effectively.
14 million personal risk and protection policyholders 4 million savings/pension policyholders
THE WORLD OF CNP ASSURANCES CNP Assurances, France’s leading insurer, successfully moved into Latin America twenty-five years ago and more recently into Europe. As it did so, it adapted its insurance solutions to the needs of countries’ populations and lifestyles to provide every customer with peace of mind.
23 million personal risk and protection policyholders 1O million savings/pension policyholders 18% of Europe’s population over 65 years old(1)
CNP ASSURANCES France, Italy, Spain, Denmark and its subsidiaries in France: MFPrévoyance, CNP Caution, Filassistance International, Âge d’Or Expansion, Lyfe and Youse Europe
CNP SANTANDER Ireland, Germany, Poland, Austria, Norway, Sweden, Denmark, Finland, Italy, Spain, Belgium, the Netherlands
UX, data, AI, pitch and POC are now part of our vocabulary, we work in a collaborative manner on cross-divisional projects requiring sophisticated insurance skills and cuttingedge expertise, and we operate with and like startups.
with the Zelros startup enables individual insurance CRM agents to access to the relevant information without having to look for it so they can provide customers with rapid and accurate answers. Over a six-month period, the assistant was used 3O,OOO times, and the system was extended to 12O call- centre employees in 2O19. The solution harnesses artificial intelligence so that CNP Assurances’ “augmented” employees can use their time and skills more profitably.
FOR CUSTOMERS In the past year, over 8O,OOO customers have had their questions answered in a simple, independent and fun way by the Dial Once omnichannel contact platform. CNP Assurances is available and operational 24/7 via PC, tablet or smartphone, email or SMS text, via the customer website or by talking to an advisor. The fact that 23% of customer contacts were recorded outside customer service opening hours in the first year of the trial is clear evidence of this. The solution, which was designed jointly by employees, the Dial Once startup and customers, has been rolled out in agile mode to keep making improvements to digital pathways. The next step is to extend the solution to all customers of CNP Assurances’ partner networks.
“Digital tools, the sharing of ideas, new business practices and offices, and mobile working are core pillars of the modern approach, enhancing the skills of our employees and raising the Group’s performance.” BÉRENGÈRE GRANDJEAN, GROUP HEAD OF HR
“Supporting the more rapid cultural change of a longstanding operator in the strictly codified insurance sector is a real challenge. Our approach is to conduct trials to boost customer acquisition, while making sure that we explain and build confidence in the changes.” ALAIN LEPRÊTRE, CULTURAL AND MANAGERIAL TRANSFORMATION PROJECT
“The Open Innovation Challenge gives employees a chance to try out something new, become more independent, gain new skills and work in groups – and not necessarily with their office colleagues!” PIERRE-ALAIN LESAULNIER, HEAD OF MONITORING, BENCHMARKING AND STRATEGIC MARKETING INNOVATION
The team I was fortunate to be able to choose my team mates. We were all experts in our fields, all from different backgrounds and all had the ability to contribute added value. That ratcheted up our capacity to get things done and enabled us to complete the challenge in four months.
The lessons Taking a chance is essential. I was able to overcome my limitations. The hardest part was stopping afterwards!
Risk management and control Technical, financial and operational risks, insurance law, compliance, audit: ethics form the cornerstone.
Management From line manager to coach, to act in a complex and uncertain world: soft skills(2) hold the key.
Off-the-peg solutions will no longer do given the massive amount of data available and integration of technologies, our customers’ greater expertise and the power of standard practice. Everyone is in learning mode to contend with complexity.
Customer relationship management Policy subscription, medical affairs, services, customer quality, policy administration: a robust team for a priority area.
Information systems Development, production, architecture, data, networks, cybersecurity, Cloud, AI, API, bots: drivers of new insurance services.
Working environment Buildings, services, security and, now, teleworking and open space.
CNP Assurances is reinventing its solutions to protect as many policyholders as possible. The CNP Assurances Foundation extends our reach to disadvantaged areas where social inequalities also take a toll on health. Like the Group itself, the CNP Assurances Foundation focuses on risk prevention through education and embraces joint decision-making in projects with all stakeholders.
UNITED WAY L’ALLIANCE takes a preventative approach to school dropouts by supporting junior-high students in priority education areas throughout their schooling. A pioneer in collective corporate sponsorship in France, it builds its programmes jointly with all the schools, families, local authorities, non-profit organisations and businesses influencing young people’s success. The CNP Assurances Foundation was one of the first to join the group of corporate sponsors and support the United Way L’Alliance’s flagship “Youth Challenge” programme. It supports young people from the age of 11 until they leave school, and helps them to gain expertise and life skills through initiatives promoting well-being, such as developing their public speaking and interpersonal skills. This is an area in which CNP Assurances opted to work with a partner and provide support, so that good health can lead to success at school and in life.
AT WORK Call for entrepreneurs, the first edition of CNP Assurances’ Open Innovation Challenge, had the theme of “enhancing customer satisfaction”. It embraced contemporary evaluation methods, with likes by colleagues and a vote by customers, prior to a decisive pitch. That did not put off the “Gaston” team, which was determined to make life easier for the deaf and people with hearing impairments. They can now use the interface offered by our partner Sourdline to access CNP Assurances’ services completely independently by phone or by special chat service, and to interact directly using sign language. This project went on to become an online service reflecting CNP Assurances’ people-first DNA.
LET’S KEEP MOVING The challenge: travel 4O,OOO km – once around the world – on foot, by bike, etc. CNP Assurances’ employees in Europe and South America rose to the challenge. They all worked together to cover the distance and support efforts to combat inequalities worldwide. Over a one-month period, 1,147 employees counted their steps (on their smartphone or their connected watch) and spared no effort, walking up the stairs rather than taking the lift, walking to work rather than using public transport, and then doing (more) sport after work. By the end of the challenge and their circuit of the world, CNP Assurances’ corporate sponsorship initiative had raised €3O,OOO for three charities: Action contre la faim, Oxfam and Plan international, which aim to combat the hunger, poverty and inequalities that blight futures.
WITH OVER €3OO BILLION invested across all sectors of the economy, CNP Assurances is a major provider of funding to the real economy and for the future of the regions. The Group ranks among the world’s top 5O institutional investors in private equity and is one of the leading players in France. Every year, it invests between €5OO million and €7OO million in unlisted businesses and guides them through every stage in their development. As a signatory of the UN Principles for Responsible Investment, the Group selects its investments using environmental, social and governance (ESG) criteria. Over the past ten years, this approach has been extended to all asset classes.
WITH 81% OF ITS ASSETS screened on ESG criteria at year-end 2O18 and 19% partially screened, CNP Assurances is pursuing an integrated approach as a responsible investor, with arrangements geared to the specific nature of each asset segment.
“Responsible investment is neither a constraint nor a formality, but a driver helping us to address the challenges facing our societies.” OLIVIER GUIGNÉ, GROUP CHIEF INVESTMENT OFFICER
CNP Assurances strives to make a difference in its role as an institutional investor by making sure its portfolio is fully aligned with its values.
WITH €1O BILLION in green investments at year-end 2O18 and fresh ambitions to withdraw from the coal industry, CNP Assurances is following up on its decision to become more and more engaged in efforts to combat climate change. The Group firmly believes that widespread environmental damage would give rise to a financial risk against which it has a duty to protect itself so it can honour its, in certain cases, very long-term commitments to its policyholders.
Reduction in the equity portfolio’s carbon footprint in CO2-equivalent tonnes per €k invested
MAJOR COMMITMENTS IN SUPPORT OF THE ENERGY AND ENVIRONMENTAL TRANSITION to help limit global warming to 2 °C by the end of the century.
3 more Less than 2 minutes to insure a mobile phone, without any deductible or waiting period and with no commitment, using the mobile payment app developed by Lydia. The fintech, supported under the Open CNP programme, reduces insurance to its simplest form, while regenerating CNP Assurances’ products and services, methods and customer base.
1 year of success The new partnership with UniCredit has got off to a very strong start. CNP UniCredit Vita recorded €3.3 billion in net savings/pension inflows, up 29% compared with 2O17, and premium income up 15.1% in the burgeoning personal risk market.
Agreement in the pipeline The memorandum of understanding entered into with Caixa Seguridade on 3O August 2O18 provides for a new exclusive distribution agreement covering Caixa Econômica’s network in Brazil until 2O41. The extent of the new exclusive arrangement, which covers personal risk, consumer finance insurance and pensions, is currently being discussed.
The buyout of 1OO% of its CNP Cyprus Insurance Holdings subsidiary represents the latest move by the Group in its international expansion drive. The subsidiary, the number two insurer in Cyprus, possesses the country’s largest network of independent agents distributing a full range of life and non-life insurance products.
Bronze award The Fuzzy Matching model developed by CNP Assurances’ data scientists combines machine learning and artificial intelligence with advanced indicators. As a result, it can find over 99% of the beneficiaries of unclaimed life insurance policies. That won it the bronze award in the Customer Relationship Innovation category of the 2O18 French insurance awards.
Financial strength given a ringing endorsement by two leading credit rating agencies. Moody’s reiterated its A1 rating (with a stable outlook), while Standard & Poor’s raised its rating by one notch from A– to A. In both their comments, they highlighted the prospect of a new distribution agreement in Brazil.
(1) France’s banking and insurance supervisor (ACPR, Autorité de contrôle prudentiel et de résolution).
Watch this space… The merger between CNP Assurances and La Banque Postale to form a large state-owned financial powerhouse is due to go ahead in 2O2O. The plan seeks to maintain trust and continuity for shareholders, and will create value for all stakeholders – for customers and the regions, for partners, for employees and for society at large.
Significant improvement in the product mix and very tight grip on costs
IN FRANCE, net insurance revenue rose 5.2% to €1,8O4 million. Savings/ pensions net insurance revenue was boosted by higher unit-linked new money, while the personal risk/protection business benefited from improved loss ratios for previous claim years.
IN LATIN AMERICA, net insurance revenue came to €1,O69 million, down O.6% as reported, but up 19.4% at constant exchange rates. Growth drivers included sharply higher technical reserves in the pensions business.
IN EUROPE EXCLUDING FRANCE, net insurance revenue contracted by 6.8% to €241 million as a result of the cost of renewing the distribution agreement with UniCredit in Italy being smoothed over three years. CNP Santander enjoyed strong growth in net insurance revenue (21.8%).
€12 billion including a €4.2 billion increase in the free surplus, creating a high level of financial flexibility.
CNP Assurances’ share price outperformed both French blue chips and European insurance stocks.
Visit our website at cnp.fr Whether you are an individual, a professional, or a job applicant, CNP Assurances Group’s website has a section dedicated to you, plus a Newsroom for journalists and Investor pages for buy-side analysts and individual shareholders.
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