Strong growth in all key markets, record results with high solvency and profitability and regular dividends, a new offering of comprehensive services, and leadership in the green transformation of Poland's financial market – these were the most important objectives of the PZU Group's new Strategy for the next four years, presented on 25 March 2021.
Increase revenue and market share – partially implemented.
The main strategic objective in the area of business development was to increase the PZU Group's sales, as measured by gross written premium. The strategic ambition by 2024 was to reach PLN 26 billion, an increase of 10% compared to 2020, which was achieved.
The assumptions were that LINK4 would see more than 22% growth in gross written premium by 2024, achieved, among other things, through continued, consistent digital transformation. It was assumed that analytics will be a source of growth and savings in marketing processes, sales, claims handling and better client management across all channels (omnichannel approach). It was also expected to translate into an increase in LINK4’s share in the TPL market to over 6% and, as a consequence, an increase in the property insurance market share to approx. 3%. The goal was not implemented.
TUW PZUW recorded the assumed increase in gross written premiums by approx. 62% to approx. PLN 1 billion in the 2024 horizon. The assumed increases was achieved thanks to, among others, operating and cost efficiencies. New products were also introduced, among others, in the cybersecurity area.
In line with the strategic ambitions, Bank Pekao and Alior Bank were to increase revenues from insurance and banking cooperation by approx. 200% during the term of the Strategy for 2021-2024, compared to the term of the previous Strategy (2017-2020). This means growth of the cumulative gross written premium in cooperation with banks up to approx. PLN 3 billion. This was achieved by using the potential of the database of 22 million unique clients and providing them with extended comprehensive insurance and banking offer adapted to their needs, including, among others, motor, protection, credit, property, travel, leasing and group insurance.
Building the most comprehensive offer on the market – implemented
The PZU Group expanded its offering for businesses to include support services, such as risk management assistance through advisory services and implementation of advanced tools and providing an IT system for fleet management (insurance administration, fleet risk management, advisory services, ongoing legal support for Polish international fleets).
By using the latest tools and new technologies, the PZU Group improved the management of relations with clients. For this purpose, it implemented new analytical environments, which automate and support decision-making processes. Introduction of Interactive CRM improved communication and made sales processes more effective. The deployment of CRM processes shared between PZU and PZU Group’s banks was also implemented.
Developing modern business ecosystems – implemented
The objective was to implement an integrated ecosystem of non-wage employee benefits, including a set of advanced digital tools to help employers manage non-wage benefits. The system provides access to a variety of benefit types in one place, which saves time, unifies processes, increases convenience of use and reduces administrative costs. The solution offers new opportunities to build relationships based on client daily lives. Under the system, clients were to gain access to attractive products, such as PZU Sport and other packages bundled with services from external partners.
An extensive ecosystem is in place to provide in-depth assistance, including support for buying or selling a car, vehicle health checks, possible repairs and legal assistance, arranging roadside assistance and a replacement car, providing access to repair history, and access to loyalty programs and discounts on services from Group partners. All of this is available in one place, through secure and user-friendly digital tools. The platform for drivers is available to anyone, even those without insurance.
The PZU Group is a comprehensive medical advisor through a revolutionary approach to medical care.
The model is based on:
- prevention,
- digital handling (with the help of artificial intelligence “AI”),
- comprehensiveness of the service,
- Integrated Information System,
- treatment options outside the clinic.
Other than the implementation of the new model, the Group extended its cooperation with the health care system, integrated medical centers, and developed the PZU Zdrowie brand.
In the health area, the PZU Group implemented services relating to healthy nutrition and physical activity, preventive medical testing and full medical care – in the form of insurance, subscriptions or for fee services. The system includes teleconsultations, remote patient monitoring and household treatment while at the same time giving all of the interested parties quick direct access to physicians in PZU Zdrowie’s proprietary facility network that is constantly growing and undergoing integration.
Development of the green insurance offer supporting sustainable development – implemented
The PZU Group developed its green insurance offer supporting green transformation. A new insurance offer was introduced for environmentally-friendly equipment such as solar collectors, heat pumps, photovoltaic installations or small wind farms. The Group also analyzed the possibility of developing the existing product-related programs (such as e.g. Eco Risk, energy audits) for clients taking action to switch to green energy sources.
Introducing an integrated approach to all distribution channels – implemented
In order to improve contacts with clients, the PZU Group introduced a solution based on the omnichannel approach. It entailed development of hybrid service paths in the service and sales process. The solution enabled further cooperation with e-commerce partners and the expansion of the product portfolio in banking channels. Digitalization of sales and post-sales processes ensured an increase of their efficiency and created a new channel for the activation of agents.
Implementing new technologies in the claims and benefits handling process – implemented
Through developing technologies such as artificial intelligence, robotization and big data, it was possible to automate the claims and benefits handling process. This ensures prompt payment of compensation or benefits. Comprehensive, efficient and friendly service strengthened PZU’s position as the most reliable insurer in the market.
Further growth in the Baltic Countries – implemented
The PZU Group was committed to continuing organic growth in the Baltic Countries and constantly monitored the market with an eye to attractive acquisition targets. The strategic objective was to maintain 8% of the PZU Group’s overall premium in the form of the gross written premium on international markets.
Implementation of the 2021-2024 Strategy – mainly strategic metrics
1. Gross insurance revenues of PZU Group
2. Net profit attributable to the shareholders of the parent company
3. Adjusted return on equity aROE %). Calculated on an equity basis excluding the cumulative effect of change in discount rates for valuation of insurance liabilities
4. External customer assets under management of TFI PZU, Pe ao TFI and Alior TFI
PZU Group sustainable development strategy 2021–2024 – implemented
The PZU Group completed the implementation of the “Balanced Growth” ESG strategy for 2021–2024, the key indicators of which were an integral part of the "Potential and Growth" business strategy. All the targeted results in the environmental, social and management areas were achieved.
As part of its commitment to climate neutrality, the PZU Group reduced CO2 emissions through measures to reduce energy consumption, purchase green energy and offset emissions. In 2024, PZU and PZU Życie offset 2023 CO2 emissions by purchasing certified CERs offset credits. In 2024, 100% of the electricity used at properties for which PZU had signed comprehensive contracts with energy suppliers came from renewable energy sources.
Between 2021 and 2024, PZU increased its engagement in investments supporting the climate and energy transition, significantly exceeding its target of 500 million. At the end of 2024, the value of the investment portfolio stood at PLN 2,933 million.
PZU assessed 55% of its largest corporate insurance clients for ESG factors, providing a better understanding of the risks associated with their operations. Its evaluation methodologies take into account environmental, social, and management factors. In addition, in 2024 they were expanded to include the minimum guarantees included in the requirements of the EU Taxonomy. The PZU Group implemented a number of social activities in 2024 to improve safety and promote sustainable lifestyles. One of the key projects was an educational campaign on cybersecurity, which responded to recommendations from the Polish Financial Supervision Authority. The campaign was preventive and educational, providing beneficiaries with practical knowledge on how to counter threats in the digital space. Another initiative was the „Don’t talk, just get checked” campaign, which aimed to raise awareness of the benefits of regular preventive examinations. The campaign addressed the problem of Poles’ low participation in preventive examinations due to attitudes, beliefs, and level of knowledge. The campaign was supported by the Ministry of Health and the National Cancer Institute.
As part of its #Well-being strategy, the PZU Group promoted healthy lifestyles and optimal work styles among its employees. This program, adopted in 2021, included a series of measures to improve the quality of life for employees. Educational workshops were organized on-site and on-line. Participants received knowledge and inspiration on healthy eating, preventive mental health, and caring for the musculoskeletal system. As part of the #Well-being program, the PZU Group also introduced time-based benefits, such as “Two hours for the family. For everyone” and „Four Hours for Birthdays,” which allow employees to take care of the well-being aspects in their lives.
PZU fully integrated ESG criteria into its procurement processes. The key document defining the requirements for suppliers is the “Code of Conduct and ESG Best Practices for PZU Group’s Suppliers.” In 2024, ESG requirements were included in all key purchasing processes.
PZU and PZU Życie ESG “Balanced Growth” Strategy for 2021–2024
| Indicators | 2022 | 2023 | 2024 | Value for 2024 | |
| ESG Metrics included in the business strategy |
|||||
| ESG assessment of the biggest corporate insurance clients from sectors sensitive to ESG risks | 20% | 40% | 55% | 55% | |
| Increase of the current exposure to investments supporting climate and energy transition (in total in 2021–2024) | PLN 716.7 mln | PLN 2.645 bln | PLN 2.933 bln | PLN 500 mln | |
| Achieving CO2 neutrality in own operations by 2024 (scope 1 and 2) | 81% of electricity coming from RES (100% in own real property) | 81% Electricity from RES (100% in own real property) | 79% Electricity from RES (100% in own real property) | 85% Electricity from RES (100% in own real property) | 100% of purchased electricity in own real property |
| 17,508 mg CO₂ (compensation for 2021) | 17,508 mg CO₂ (compensation for 2021) | 17,425 mg CO₂ (compensation for 2022) | 18,489 Mg CO2 (compensation for 2023) | Compensation for CO2 emissions that cannot be reduced | |
| Reduction of CO2 emissions from own sources | -25.5% (location-based method) | -23.1% (location-based method | -26.2% (location-based method) | 3% – 10% by 2024 relative to 2019 Year | |
| Other ESG Strategy metrics | |||||
| Reduction in electricity consumption | 15.8% | 13.6% | 9.0% | 3% – 10% by 2024 relative to 2019 Year | |
| Assessment in terms of ESG factors of investments in ESG-sensitive sectors | 82% | 86% | 90% | 55% | |
| Development of insurance offerings for technologies supporting the energy and climate transition in Poland | 3 products | 3 products | 3 products; extension of existing product | 1 product | |
| Indicators | 2022 | 2023 | 2024 | Value for 2024 | |
| ESG Metrics included in the business strategy | |||||
| Number of recipients of community activities on safety and sustainable lifestyles (recipients of activities in a given year) | 12.2 million | 14.7 million | 15 million | 15 million | |
| Percentage of employees covered by the well-being program (total of all recipients of activities in 2021-2024) | 39% | 55.7% | 70.3% | 70% | |
| Other ESG Strategy metrics | |||||
| Development of a product offering that incorporates elements of social commitment | >>54,000 policies issued Free TPL insurance for citizens of Ukraine | 2,006 PZU DOM policies under the Large Family Card program |
5,017 policies under the Large Family Card program |
Development of offerings | |
| Percentage of corporate client employees covered by prevention activities affecting their health and safety (recipients of activities in a given year) | 13.1% | 12.9% | 12.5% | 10% | |
| Number of recipients of industry partnership activities for insurance education (total of all recipients of activities in 2021-2024) | 409,135 | 56,951 |
66,500 total in 2021–2024: 529,586 |
100,000 | |
| Development of employee volunteering | Number of hours devoted to volunteering (in total in 2021–2024) | 75,865 | 14,593 |
10,618 total in 2021–2024: 113,255 |
50,000 |
| Number of beneficiaries (total in 2021–2024) | 457,500 | 153,555 |
11 163 total in 2021–2024: 661,641 |
200,000 | |
| Indicators | 2022 | 2023 | 2024 | Value for 2024 | |
| ESG Metrics included in the business strategy | |||||
| Giving consideration to ESG targets in the Company’s strategic objectives and implementing them by the senior management | 30 ESG targets (achieved) | 36 ESG targets (achieved) | 46 ESG targets (achieved) | Inclusion of ESG targets in the strategic goals and forwarding them to the WKK for implementation | |
| Integrating ESG requirements into key procurement processes | 46% | 53% | 100% | 70% | |
| Other ESG Strategy metrics | |||||
| Percentage of employees covered by an intergenerational cooperation program (total of all training participants in 2021-2024) | 14% | 30% | 73% | 60% | |
| Percentage of employees participating in a comprehensive sustainable development education program (total of all training participants in 2021–2024) | 11% | 32% | 69% | 60% | |
| Assessment of key-status suppliers for ESG risks Conducting supplier segmentation | 55% | 100% | 100% | 60% | |
| Joining new initiatives / organizations / partnerships – promoting sustainable development | 5 (from 2021) |
7 (from 2021) |
7 (from 2021) |
3 | |