PRODUCTS, SERVICES AND DISTRIBUTION CHANNELS
Being at the forefront of our sector allows us to strengthen our value offer.
Government and Brokers
During 2017, the Firm, Brokers and Government channel improved the support and service of our business partners, as reflected in the AON, MK, Marsh and Lockton surveys.
In addition, we maintained our relationship with the major insurance intermediaries, allowing us to increase sales in this segment by 11.3%.
Brokers and direct business premiums grew 9.7% compared to the previous year.
Finally, GNP’s share in the public sector fell by 47.1% due to the loss of two jumbo businesses.
Auto Insurance
Sales in Auto insurance exceeded $12.5 billion pesos, representing a growth of 9.9% over the previous year, and positioning GNP in second place in the market.
The year saw a remarkable balance between profitability and competitiveness. We also maintained our momentum in price updating, which allowed us to preserve our market share at 12.5%.
We obtained good results in individual insurance (agents, Worksite and Internet), in which we improved our pricing scheme (in the second half of the year, we released the pricing by postal code model), allowing us to be more competitive and gain market share in low risk areas. Thus, we maintained strategic alliances with the banks and main assemblers.
In the corporate sector, the fleet portfolio proved profitable, with price adjustment and strict adherence to underwriting policies.
Auto theft increased by a record 23% in 2017; a total of 12,062 units were stolen.
Private driver services (Uber, Cabify) had a high accident rate, resulting in product and price adjustments, and the renegotiation of special conditions for the multi-year policy portfolio.
In terms of support, we made considerable improvements to some critical services, such as the contact center, contracts and appraisal. Furthermore, we consolidated our self-service model by using quotation and policy issuance tools; 75% of policies are now issued through the intermediary portal, helping to increase the satisfaction rate of our production force.
Medical Expenses
The introduction of our innovative Médico de Contacto (contact physician) allowed us to reach more hospitals. The project developed the functionality of self-services for the production force through the intermediary portal, which will begin operating in 2018.
We also completed the development of a new operating model for Medical Expense Claims, which enabled us to transition from a procedure-based approach to a comprehensive management model based on medical specialty and ailments. This will strengthen the service and control of the claim rate.
Mass Insurance
The Bancaseguros business showed a steep rise, improving 30% over the previous year and covering more than 500,000 policyholders across all branches. This growth is attributed mainly to the performance of the Auto and Individual Life segments.
With regard to Worksite, the Individual Life business continued to grow at a rate of 34% in issued premiums. For the first time, the cession of the Individual Life portfolio of 51,000 PEMEX employees became a reality, which meant a great effort for the Company.
The Agencies channel obtained a nominal growth of 8% in written premiums, with more than 560,000 active policies, primarily due to the consolidation of our business with General Motors and the growing number of policies in Toyota and KIA. Furthermore, we implemented a strategy to reduce the negative impacts of the private driver segment.
The Afinidad business maintained double-digit growth of 22% compared to the previous year, with a remarkable increase of 40% in commercial alliances.
Damages
In 2017, claims were high, mainly due to natural events: two major earthquakes (on September 7 and 19), the tropical storm Lidia, rains, hail and floods. In light of these catastrophes, we provided a swift response to more than 21,000 affected policyholders. However, GNP results remained unaffected due to our risk dispersion strategy in the reinsurance market.
In addition, we coped with four fires with damages exceeding 500 million pesos, confirming the strength and trust of our policyholders.