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Development strategy of PZU Group on individual markets

PZU Group’s ambition is to develop in the retail segment, non-life insurance for corporate clients, acquire new partners in the energy and fuel industry and provide its clients with a full range of health care services.

Retail market

In the scope of the retail client, PZU Group intends to focus on the following:

  • mass-market client: The Group will maintain its current target client base (with top potential) and increase the segment’s cross-selling. The introduction of direct/ self service and the insurance products offered under two brands, i.e. PZU and Link4, will play an important role in maintaining the current clients and acquiring new ones. The Group will strengthen relations with its clientsthanks to the upsale of non-life insurance (mainly TPLand household) among clients with group life insurance orindividually continued insurance;
  • Premium client – PZU Group will raise its share in fulfilling the insurance needs and managing the assets of such clients. Except the insurance upsale (life individual protective as well as property), the Group will offer them individual health insurance products and investment products (mainly TFI);
  • SME client – Despite the rising competition, the Group will maintain its high market share in the SME segment.
    PZU Group will strengthen its relations with this segment by offering a complex life and non-life offer, i.e. property, life, and health insurance. With the development of these companies and growth of their insurance awareness, the Group will propose increases of the sums insured in the property insurance product to the clients in this segment, especially to big clients.

Product per Retail Client



Corporate clients:

PZU Group will retain its position in motor insurance for corporate clients and also retain positive technical profitability. The Group will increase its share in the so-called Mid-Corpo segment of non-motor insurance from approximately 13% to approximately 20%.

The operating philosophy of PZU Group on this market assumes that it will become a business partner with strong expertise for the clients and provide not just insurance products but also advise the clients at all risk management stages.

The operating philosophy of PZU Group on this market assumes that it will become a business partner with strong expertise for the clients and provide not just insurance products but also advise the clients at all risk management stages (especially during the determination of insurance needs). Regardless of the entity’s size, PZU Group will have an individual approach to its clients.

The main instruments to realise the assumed objectives include the following:

  • market introduction of product and process innovations with application of new technologies, including taking advantage of the Everest platform;
  • offering risk management consulting for Clients;
  • implementation of system solutions increasing sales effectiveness and raising the quality of customer and broker service.

PZU Group’s objective in the area of life insurance offered to corporate clients is to maintain the market share and accept the simultaneous controlled profitability decline.

Main operations:

  • implementation of product innovations;
  • development of service processes applying new technologies and gradual introduction of self-service to group and individually continued insurance;
  • improving the quality of the database of clients with group and individually continued insurance for potential to use it in cross-sale for retail clients. Monitoring and management of the flow of clients from the group with group insurance to the group with individually continued insurance.

Bancassurance and Strategic Partnership Programmes

In the area of cooperation with banks, the Group sets the following objectives:

  • preservation of the market share in scope of non-life products;
  • in the long term, exploiting the opportunities arising from U Recommendation and building its position in the field of life insurance (U Recommendation may temporarily contribute to the decline in gross written premiums);
  • seeking to establish a joint venture with a selected bank partner.

PZU Group will also expand its cooperation with trading partners with large customer bases or supporting mass payments. In particular, the Group aims to acquire new partners in the energy, fuel and telecommunications industries.
The Group will implement innovative insurance and assistance products for its strategic partners.

Asset management

PZU Group’s asset management operations are carried out under the PZU Inwestycje brand. The main objectives until the year 2020 include the following:

  • dynamic growth of clients’ assets and becoming the leader in customer asset management in Central and Eastern Europe;
  • building the image of a company which provides unique products with above-average financial results (i.e. better than the median of the competitors) and exceptional competences in investing and managing considerable investment portfolios for the benefit of the clients;
  • increasing the contribution from client asset management to the financial result of PZU Group.

During the realisation of these objectives, PZU will focus on the following:

  • maintaining long-term relations with the client through offers of clear and comprehensible products and clear and transparent communication concerning risk and investmentrelated costs;
  • seeking attractive market niches to make the offered products difficult to copy by the competition; 
  • developing own investment product network, including start of online sales and selective use of PZU Group’s own network;
  • striving to provide common access to its products by expanding the external sales network in Poland (as a result of establishing cooperation with new partners and expanding cooperation with current ones);
  • establishing cooperation with the biggest client asset management companies as their subcontractor;
  • activating sales on foreign markets covering institutional investors.

Until 2020, PZU Group will dedicate over PLN 200 million for expanding asset management operations.

Health care

By 2020 PZU Zdrowie will become the biggest integrated coordinated health care operator. This means that it will provide its clients with a full range of health care services, primarily taking advantage of the potential resulting from the available sources of financing.

PZU Zdrowie:

  • will provide its clients with an entire vertically integrated chain in scope of health care composed of ambulatory care, prevention, hospitalisation, rehabilitation, and long-termcare;
  • will build an effective nationwide network of own standardised centres combined with a network of partner services (to ensure adequate access to the services);
  • will provide a unique, complex customer service model, including a client-friendly appointment system (online calendars) and an integrated medical documentation system (online patient account);
  • will take advantage of all available service funding sources (NFZ, patient funding, additional insurance, and others);
  • will develop funding systems for access to health care services.

At the same time, PZU Group is considering investing in a hospital network and potentially in an assisted living residences. They will be treated as financial investments. If market conditions permit, the hospital and assisted living residences will have the potential to be integrated with PZU Zdrowie.

Between 2015 and 2020, PZU Group will allocate over PLN 800 million to expanding health care operations, including PLN 450 million to acquisitions.

The Group considers health care business investment as a strategic option, which will be applied in instances of considerable structural reforms (additional health insurance or competition in public premium management).

Central and Eastern Europe

PZU Group will expand its international operations through both organic development on the markets where it is already present and acquisition on prospective markets.

In the countries where it is already present, the Group will become one of the three biggest insurance companies considering the gross written premium.

PZU Group will actively monitor the markets of Central and Eastern Europe to identify potential insurance (or optionally asset management) acquisition targets attractive from the perspective of profitability or restructuring potential.
The considered options will include acquisition of both big companies with considerable market share as well as small entities with the development potential providing an outpost for further expansion. Expansion is also possible through greenfield investments (e.g. through Link4).

Share of foreign business premium in PZU Group premium (%)