Non-life insurance (PZU, LINK4 and TUW PZUW)

As the PZU Group’s parent company, PZU offers an extensive array of non-life insurance products, including motor insurance, property insurance, casualty insurance, agricultural insurance and third party liability insurance. At yearend 2020, motor insurance was the most important group of products offered by PZU, both in terms of the number of insurance agreements and its premium stated as a percentage of total gross written premium.

Faced with changing market conditions, PZU realigned its offering in 2020 to clients’ interests and needs by rolling out new products and innovative solutions.

PZU’s activities in the mass insurance segment:

• in PZU Home insurance, it extended the scope of the assistance product to include the new personal data protection service, Alerty BIK. The service offers protection against unauthorized use of personal data by third parties, for example to take out a loan. Additionally, a Service Option clause was added to the private property insurance and the insurance cover of the Health Assistant product was modified. The Service Option is a new claims handling standard, in which the company organizes and pays for repairs following a water damage loss, instead of paying out a claim. The new Health Assistant product offers rehabilitation procedures to clients suffering from an orthopedic injury. Also, a new pricing tool Radar Live was introduced, which will enable an even better alignment of the offering with the client’s expectations and risks;
• in the PZU Crops product, an additional limit of 10% was introduced to supplement the existing limits of 17% and 25% – in the risk of adverse effects of ground frost for grain and rape. Additionally, the limit of claims paid for total losses occurring after May 31st was increased from 85% to 90% to adapt it to market regulations; 
• expanded the scope of PZU Firma by adding the following:
• the PZU Cyber clause providing insurance cover, among others, against the consequences of cyberattacks and breaches of privacy regulations (including the GDPR and the Polish Personal Data Protection Act). In the event of a cyberattack, PZU will arrange for and cover the costs of assistance by incident management specialists, IT investigators, law firms and a PR agency, 
• changes to make the offer more attractive for businesses, which included definitions, a catalog of liability inclusions and a catalog of additional clauses, which was extended; simplifications were introduced in the area of data collection to speed up the offering process, as well as system prompts pertaining to the insurance cover recommended by PZU depending on the business profile;
• increased the appeal of General TPL insurance (independent product) and PZU Advisor for businesses, forwarders and IT service providers, by making changes to certain definitions and liability exclusions. The wording of some clauses, including forwarder’s third party liability, was modified; 
• rolled out the PZU against Cancer product for clients under the age of 65 who have not been diagnosed with cancer prior to enrolling in the insurance. The insurance offers funds needed for treatment in the event that a malignant neoplasm is diagnosed, including pre-invasive or non-malignant brain tumor. It also offers the possibility of obtaining an additional medical opinion from an international specialist; 
• changed the pricing of the PZU ADD insurance for athletes and in short-term contracts; 
• launched the UTO TPL insurance of personal transport devices to accompany the TPL insurance for owners of motor vehicles. The insurance covers losses caused by the use of a personal transport device, such as e.g. a bicycle, electric scooter or a segway transporter. A new rider to the TPL insurance for motor vehicle owners who are natural persons increases its appeal and differentiates the product on the competitive motor insurance market;
• supplemented the PZU AUTO Assistance insurance with doctor consultations in the event of an accident of a bodily injury suffered in connection with the use of a vehicle. The additional benefit is an element of the medical insurance growth strategy in the PZU Group. Its purpose is to encourage clients to use medical care in PZU; 
• extended the coverage in the PZU AUTO Legal Protection insurance for businesses and their car fleets, mainly for corporate and fleet clients, to also include:
• assistance abroad provided over the phone for an owner or a driver of a vehicle insured with PZU; this product assistance in determining liability for a loss, protecting the client from being falsely attributed fault, 
• legal consultation in Poland or abroad after an accident involving a vehicle insured with PZU, 
• increased the sums insured to PLN 2,000 in the Komfort option and to PLN 50,000 in the Super option. Modification of the legal protection insurance cover ensures comprehensive protection of a fleet and a corporate client and reduces its operating costs. PZU benefits by reducing the frequency and value of foreign losses in TPL insurance of motor vehicle owners;
• added the PZU Motor Tires insurance to its offering, providing assistance and funding for clients with PZU Auto TPL or PZU Auto MOD for the repair or replacement of a damaged tire in a vehicle. This insurance stands out due to its very broad available cover, adjustable in accordance with the client’s needs. Another advantage is the largest assistance network on the market comprising over 700 PZU partners providing road assistance services.

Most of the changes in the corporate insurance segment increased the effectiveness of collaboration with intermediaries and the appeal of the dedicated offering for fleet clients and leasing companies. Major new products included: 

• deployment of a new offering in the property insurance in international transport, aimed at increasing PZU’s competitiveness and standardizing the offering, in particular for clients in the business of both domestic and international transport;
• development of the PZU D&Oskonała Ochrona [PZU D&O Perfect Protection] sub-product for small and medium-sized enterprises, which covers third party liability insurance for members of governing bodies of such companies.

In financial insurance, PZU was unswerving in its support for the Polish economy by providing insurance guarantees and securing the performance of contracts in such key areas as the power sector, the construction industry and the science and innovation sector. The most important activities related to the product offering were as follows 

• modified the Environmental guarantee product to secure claims by owners of waste, who are obligated to obtain a permit for collecting and processing waste; 
• introduced a financial loss insurance GAP in the dealer channel; 
• changed the risk assessment process for offering insurance guarantees, insurance of bank loans and GAP financial loss insurance.

In 2020, PZU cooperated with 8 banks and 10 strategic partners. PZU’s business partners are leaders in their respective industries and they have client bases offering the possibility of extending the PZU’s offering with additional innovative products geared towards those clients. By actively cooperating with PZU Group’s banks, i.e. Bank Pekao and Alior Bank, PZU continues the implementation of a comprehensive offering using the banks’ distribution networks. This cooperation has allowed PZU to steadily expand the offering and scale of sales of insurance products linked to bank products, including insurance coverage for cash loans and mortgage loans.

In strategic partnerships, cooperation was based mostly on companies operating in the power sector through which PZU offers assistance services, e.g. the assistance of an electrician or a plumber as well as the newly introduced health assistance. PZU’s insurance offering is also present on the e-commerce market through cooperation with PLL LOT, iSpot and Allegro.

Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych (TUW PZUW) offers flexible insurance programs customized to the needs of the insured in terms of insurance cover and costs of the cover. Since 2016, it has been selling and handling commercial insurance products for various industries, focusing predominantly on cooperation with large enterprises, medical centers (hospitals and clinics), church entities and local government units.

At the end of 2020, the TUW PZUW had 432 members, which is 50 more than the year before. They are grouped by specific criteria (industry, corporate, risk types) in 52 mutual benefit societies (their number grew by two as compared to the previous year).

TUW PZUW is consistently attuning its operating model to the growing scale of business by expanding its team of professionals, who provide comprehensive service of its members’ insurance and tailor the offering to the members’ individual preferences.

In 2020, TUW PZUW continued its dynamic growth in terms of sales. It implemented new products and innovative service solutions, responding to the needs of the changing market and client expectations.

The most significant change in the offering was the launch of the Machinery Loss of Profit (MLoP) product for both large and smaller businesses. In the strategic partnership (affinity) area, an insurance offer was developed for renewable energy sources and assistance for clients with photovoltaic installations.

On the „500 List”, which is the list of largest Polish companies prepared by the Rzeczpospolita daily, TUW PZUW increased its ranking in 2020 from 460th (in 2018) to 407th. As a result it ranked 12th in the “Top Movements” category. It was also ranked 30th in the list of companies with the highest income growth (53rd in last year’s edition).