The development of corporate customers’ services continued in 2005, so as to meet customers’ needs in an even more satisfactory manner.
The development of service concepts was divided into areas that are relevant from the viewpoint of the corporate customers’ business operations: asset and operative services, personnel risk management services, and financial services.
These areas ensure that Tapiola has a clear role in identifying the risk areas in its corporate customers' activities and in the prevention of their business risks. Risk management is intended to guarantee the undisturbed continuation of corporate customers’ business.
Following a long-term trend, many of Tapiola’s corporate customers also expanded their operations abroad in 2005. Thanks to our international cooperation network, customers can be served globally but their special local needs will also be taken into account.
Customers’ opinions monitored closely
Tapiola’s position as an insurer of major clients has developed favourably. As regards major clients, focus has been placed on careful customer selection, as well as on the professional and active service of our existing customers.
According to a brand and service image survey carried out for Tapiola at the end of 2005, Tapiola is the second most attractive alternative for small and medium-sized companies that intend to change their insurance company. 81% of Tapiola’s major clients are not even considering changing their insurance company.
The highest grades that were given to Tapiola by customers were those that concerned Tapiola’s contact person’s expertise and willingness to serve. The biggest positive developments from the previous survey two years before had occurred in the expertise level of the contact person and in the ease of the claims process.
About 70% of Tapiola’s customers considered the price/quality ratio of Tapiola’s insurance services competitive and over 60% appreciated the customer-specific, tailored insurance and service solutions. According to the survey, corporate customers with over 50 employees considered Tapiola’s comprehensive risk management experience higher than did our smaller corporate customers.
The decision-makers of our corporate customers were of the view that Tapiola genuinely cares about its customers – the situation being clearly better than of Tapiola’s competitors.
Comprehensive risk management conducted with many companies during the year
Asset and operative risk management projects were conducted to develop methods supporting risk selection and assessment, while the development of operative models to help guide the use of experts also proceeded. The piloting of the methods began in many smaller and medium-sized companies.
Comprehensive enterprise risk management (ERM) was established as a method for conducting large-scale risk assessments with the largest customers. During the year, many risk assessments were successfully conducted with major clients and SME customers.
Many new experts were recruited in 2005 to ensure a high level of service for the customers.
Number of mutual funds was increased to meet corporate customers’ needs
Tapiola Asset Management Ltd increased its mutual fund range from 16 to 18 mutual funds by introducing two mutual funds specifically aimed at companies and organisations: Tapiola Real Estate and Tapiola Corporate Bond.
The mutual fund assets of the company increased by EUR 244 million to EUR 974 million, and at the end of the year the number of unit-holders included 1,363 corporate customers.
Decrease in claims improved profitability
Market shares continued to increase in companies' asset management and operative insurance. Additionally, profitability kept improving. This was due to a decrease in claims and increases in prices among other things.
The net transfer result in statutory accident insurance was outstanding: EUR 1.8 million, i.e., about 10% more than in the previous year.
Years 2005–2007 will be a period of significant change in the field of earnings-related pension insurance. A large-scale pension reform entered into force in 2005, which was significantly reflected in the development of IT systems, dissemination of information to customers and training of personnel.
In addition, Tapiola has made preparations for a legislative change that enters into force at the beginning of 2007 and will combine the current TEL, LEL, and TaEL Pension Acts into a new TyEL Employee’s Pension Act.
Tapiola Pension continued to perform well in the new sales of earnings-related pension insurance policies to companies. Growth exceeded clearly its market share in the overall insurance stock.
Comprehensive personnel solutions
Personnel, their availability, retention and expertise have become an increasingly important success factor for Tapiola's corporate customers.
As a group of companies, Tapiola has the opportunity to provide its customers with total service covering all the main risk areas related to personnel. The service includes mapping, preventive measures, and tools for minimising the financial impact if the worst happens. The service enables Tapiola to - among other things - help its corporate customers to keep personnel content and in the service of the organisation.
Tom Liljeström
Group Director
Corporate Customers, Major Clients and Organizations