-
S4-4
PZU Group adopts a systematic approach to identifying and minimizing negative impacts on consumers and end-users. This process is based on complaint and claims analysis and customer satisfaction surveys. These data help determine necessary corrective actions and optimization of customer service processes.
Consumer and end-user impacts related to information (access and data protection)
All PZU Group products across the four value chain elements (Non-life insurance, life insurance, health, and investment products) comply with regulatory requirements:
- regarding general terms and conditions – PZU Group directly applies the Insurance and Reinsurance Activity Act. Additionally, product development procedures require the obligatory preparation of terms and conditions (T&C’s)
- regarding Key Information Document (KID) for investment insurance – PZU Group directly applies the PRIIPs Regulation and the “Product Development Procedure”
- regarding Insurance Product Information Document (IPID) for non-life Insurance – PZU Group directly applies the Insurance Distribution Act, Regulation 2017/1469 of 11 August 2017 establishing a standardized format for presenting a document containing information on an insurance product and procedures for creating products.
All PZU Groups’s foreign subsidiaries also follow strict product development and sales regulations. Operating in Lithuania Lietuvos Draudimas apart from the procedure for launching new products, applies also the “Insurance Products Policy” that establishes rules for product development and modification that should ensure compliance with legal and regulatory requirements. Within the Latvian BALTA enterprise guidelines for client communication were implemented that define general communication rules for existing and prospective clients. Furthermore, BALTA follows the “Customer Needs Identification Policy” and the “Change and Product Development Management Policy”.
Regarding investment and pension fund governance PZU Group cooperates with the Chamber of Fund and Asset Management in order to implement best market practices. In terms of life and health insurance PZU Group applies industry standards ensuring transparency, non-discrimination, and data protection. Moreover, PZU Group analyses customer complaints and their feedback to adjust services and processes to their needs.
In terms of non-life insurance PZU Group leverages statistical analysis and customer feedback to tailor responses to identified issues. Enhances communication transparency, documentation, and mediation as key dispute resolution tools.
In the healthcare sector, the PZU Group implements risk assessment systems in compliance with GDPR regulations, enhancing the security of patient data processing. Through continuous market monitoring and analysis, the PZU Group effectively minimizes actual and potential negative impacts of its operations, adapting its activities to evolving customer needs.
In addition, Bank Pekao takes a number of actions to prevent significant negative impacts on the financial resources and security of customers, acting in this respect in accordance with the New Product Implementation Process. Alior Bank prevents negative effects of products by preparing them in accordance with legal standards, recommendations of supervisory bodies, industry practices and market practices. In addition, Alior Bank and Bank Pekao analyze customer complaints on products, services and IT systems. Both entities implement corrective measures such as procedure updates, product enhancements and strengthening cybersecurity and customer financial security measures. Banks strive to minimize overindebtedness risk via securing MIFID compliance, educational campaigns and analysis of marketing impact on institutional reputation.
PZU Group applies mechanisms for monitoring service quality, complaint and claim analysis, and implements tools to improve customer security, such as identity verification mechanisms and multilingual communications (English, and Ukrainian). All these actions aim to increase customer trust and minimize potential negative impacts on end users.
Preventive, mitigating, and corrective actions
PZU Group takes proactive measures to prevent, mitigate, and remedy significant negative impacts on consumers and end-users. Key initiatives include:
Regular reviews and updates to customer data security procedures to minimize privacy breach risks.
Implementation of analytical tools to detect potential risks in data protection and complaint handling.
Employee training on risk identification and management, including discrimination prevention and promotion of equality in customer service.
Development of operational risk monitoring systems and early problem detection tools.
Conducting educational campaigns to inform customers about threats, fraud methods, and ways to avoid them, aiming to enhance customer security and reduce the number of unauthorized transactions at Bank Pekao Alior Bank.
Implementation of simplified complaint handling processes to reduce wait times and lessen customer burden.
Financial and technological support for vulnerable groups, including seniors and persons with disabilities, through tailored service procedures.
Mediation and expert-led negotiations to find solutions tailored to individual customer needs in complex situations.
Moreover, to enhance customer security and mitigate unauthorized transaction risks, Bank Pekao has undertaken a series of actions, particularly:
- introduced new transaction monitoring functionalities within fraud prevention systems and modules,
- implemented transaction system changes, including instant card blocking and electronic banking access restrictions upon suspected fraud option and additional security measures such as two-factor authentication via PeoPay app or hardware key.
Following banking sector trends, by the end of 2024, Bank Pekao adjusted internal regulations in compliance with the President of the Office of Competition and Consumer Protection’s position on unauthorized transactions published on November 16, 2022.
Implementation of corrective programs when systemic issues in customer service processes are identified.
Compensation offers for customers who suffered financial losses due to operational errors.
Provision of rehabilitation and psychological support for customers affected by serious incidents such as healthrelated incidents or financial damages.
Initiatives generating additional positive impacts
During the reporting period, PZU Group implemented several initiatives supporting sustainable development and improving customer quality of life:
Workshops organization to increase financial awareness and promote responsible insurance product usage.
Implementation of educational and social programs in local communities, covering environmental protection and risk management.
Progress achieved during the reporting period
Bank Pekao focused its activities on raising awareness of the financial and digital security of customers. It promoted activities that increase positive customer experiences with call-center in bank branches.
All activities carried out by the PZU Group require the involvement of significant resources, such as the working time of qualified staff or maintenance of infrastructure, but it is currently impossible to present detailed data relating to specific initiatives.
Ways of ensuring PZU Group’s practices do not contribute to significant negative impacts
PZU Group has implemented detailed procedures and mechanisms to eliminate potential negative operational impacts:
Regular reviews and audits of operational processes and their compliance with binding regulation, such as GDPR and consumer protection regulations.
Conducting internal audits in areas of risks identified as potentially affecting customers.
Periodic assessments of offered products and services impacts on different customer groups, particularly on seniors and marginalized groups.
External expert consultations to evaluate potential risks from new products and marketing strategies.
Implementation of ethical marketing and sales policies to eliminate misleading customer information risks.
Adjustment of complaint handling procedures to minimize potential negative consequences of delays for customers.
Regular trainings for employees on identifying and avoiding potential negative operational impacts.
Educational programs for executive management on ESG policy implementation and social responsibility.
Disclosure of major issues and incidents related to human rights in consumer and end-user relations
PZU Group regularly monitors and analyzes both potential and actual human rights incidents in consumer and end-user relationships. No significant human rights violations were identified in terms of operational activities during the reporting period.
Resources allocated for managing significant impacts
PZU Group allocates financial, human, and technological resources to manage significant impacts on consumers and end-users.
Experts from various fields monitor ongoing risk and implement corrective actions. Human rights, mediation and risk analysis teams support a comprehensive approach to impact issues.
The implementation of actions is the responsibility of numerous organizational units of PZU, including:
PZU Group has multiple key units responsible for different aspects of customer relationships and attention to high service quality.
Customer Experience Management Office at PZU and PZU Życie is responsible for customer opinions analysis and corrective actions recommendations to continuously improves service quality and adjusts offer to customer expectations. Situations requiring special attention Customer Ombudsman support is provided, who handles complaints and assists customers with difficult matters.
The product management offices tailor the product offering to individual needs of consumers and ensure that PZU and PZU Życie offerings align with customer needs in the best possible way. In the event of claims, efficient handling of complaint claims and the execution of compensation processes are ensured by Claims and Entitlements Office.
The Compliance Office is responsible for ensuring that PZU and PZU Życie activities comply with applicable legal regulations, guaranteeing adherence to regulatory requirements and ethical standards. At Bank Pekao, the Compliance Department designs and supervises the implementation of control mechanisms aimed at ensuring compliance with legal provisions, internal regulations and market standards
Furthermore, PZU Group coordinates actions supporting vulnerable groups, focusing on corporate social responsibility initiatives. External partners participate in the process of implementing corrective measures, including NGOs and experts in rehabilitation, psychological support, and mediation services.
Additionally, to increase its positive impacts and reduce its negative impacts and risks PZU Group has taken multiple initiatives, including:
The PZU Group has introduced a centralized (does not apply to Bank Pekao and Alior Bank). A centralized customer complaint and claim tracking system that allows for tracking them at every stage of the process and ensures transparency and efficiency. In order to effectively respond to customer needs complaints are regularly analyzed to identify root causes and in case of more complex cases they consultation with experts are organized. Based on these analyses, corrective actions are implemented to eliminate recurring issues and improve service quality. Additionally, mojePZU app has been enhanced with new features, allowing customers to conveniently manage claims and resolve issues in real time, significantly improving the overall service experience with PZU Group’s services.
PZU Group develops its products and services taking into account vulnerable groups (e.g., seniors, persons with disabilities, Large Family Card holders). The offer is implemented to ensure greater security and comfort for these customers when using services. Additionally, health protection programs and investment products are introduced, catering to the needs of both individual and corporate clients. As a result, PZU Group offers comprehensive solutions supporting both health security and long-term financial investment.
PZU Group continuously modernizes its digital platforms (e.g., mojePZU) to improve accessibility to provide customers with even greater convenience and access to services. These improvements enable users to easily report issues and track their data and cases in real time. At the same time, integrated systems for risk management and customer complaint analysis are being implemented. This allows for more effective monitoring of situations, faster responses to emerging challenges, and the introduction of appropriate corrective actions, leading to higher service quality and enhanced customer security.
Moreover, to enhance security and prevent unauthorized transactions, Bank Pekao has increased human resources for handling alerts in anti-fraud systems
PZU Group actively engages in educating and supporting its customers by organizing local informational campaigns and educational workshops. These initiatives focus on consumer rights and data protection, helping customers better understand their rights and make informed decisions when using financial and insurance services. Additionally, specially tailored service desks have been established at branch offices, taking into account the needs of vulnerable groups, such as seniors and people with disabilities. As a result, PZU provides more comfortable and accessible contact with advisors, eliminating barriers to accessing services.
Creation of simplified, accessible informational materials on products and customer service procedures ensuring full consumer understanding.
Consumers and end-users play an active role in shaping decision-making processes on development and implementation of PZU Group’s programmes and processes, mostly by customer feedback mechanisms and data analysis. This information is used to tailor customer service processes and implement improvements. Customer Experience Management Office conducts regular satisfaction surveys regarding the purchase of insurance, ongoing service, claims handling, and complaint management, which allows for the identification of areas that need improvement. Based on this, new solutions are designed, customer journeys are mapped, and innovative changes are implemented in accordance with the “Customer Experience Initiative Management Policy” at PZU and PZU Życie.
In the non-life and health insurance sectors, customer engagement is indirect. Their role is limited to filing complaints, participation in NPS surveys and providing feedback on service cases. In Lietuvos Draudimas – Estonian branch, consumers do not directly participate in process design decisions, however, their feedback is considered through complaint submissions and business unit data. BALTA actively engages customers in decision-making processes, conducting topic-specific surveys, damage pattern data collection and customer needs analysis. Their opinions influence simplification of insurance terms and tailoring of educational campaigns such as “Crazy Safe Summer”, targeting child injury prevention. All these actions aim to enhance customer experiences, increase their satisfaction and align products and services with actual customer needs.
The role of PZU Group’s business relationships in managing consumer and end-user impacts
In 2024, PZU Group leveraged its business relationships to manage significant negative impacts on consumers and end-users by collaboration with external entities and service providers. In the life and health insurance sectors, PZU Group relied on relationships with employers, offering group health insurance to their staff. Insights from past collaborations PZU Group used to optimize customer service processes and tailoring offerings for new customers. For claims handling and benefits management, PZU engaged medical service providers, medical assessors and rehabilitation specialists that allowed for faster accident assessments and access to medical entitlements. Additionally, collaboration with translators enabled the processing of documentation in foreign languages, which enhanced customer comfort.
In service quality management, PZU oversaw relations with post-accident repair providers, ensuring compliance with market standards and monitoring and customer satisfaction surveys. In terms of marketing and communication PZU Group actively engaged in industry organizations promoting responsible marketing initiatives in order to take part in discussions on ethical communication in finance and insurance sector. Additionally, PZU Group banks (Alior Bank and Bank Pekao) in cooperation with external vendors implemented tools to improve customer security, such as PESEL number verification for financial agreements and electronic business cards for employee identity authentication. These actions demonstrate PZU Group’s strategic approach to leveraging business influence to minimize negative operational impacts and improve consumer protection standards.
Impact results
The result of the actions aimed at achieving the mentioned above goals was the maintenance or increase in customer satisfaction of PZU Group. Additionally:
PZU i PZU Życie’s NPS scores in 2024 reached a level of 45 after the insurance purchase and 23 after using the insurance, keeping up with the result from the previous year.
Pekao noted NPS increase in different customer segments in Q4 2024 compared to Q4 2023: 3 points difference in the individual customer survey, 14 points in the sole proprietorship survey (JDG), 3 points in the SME customer survey, and 15 points in the MID customer survey.
BALTA in its annual survey, the company recorded the best result on the market in terms of security and risk prevention. Additionally 42% of customers rated BALTA as a socially responsible insurer.
Link4 systematically analyzed customer inquiries and implemented service process enhancements, which resulted in an increase in the Net Promoter Score (NPS). Additionally, the company continuously monitored service quality and introduced initiatives aimed at improving user satisfaction.