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S4.SBM-3
Customers and end-users
As part of the double materiality assessment, PZU Group defined consumers and end-users in accordance with ESRS 2 guidelines. This means that the Group analyzed all consumer groups that could be significantly impacted, including both direct customers of PZU Group entities and end-users of services and products provided by PZU Group’s business clients. A comprehensive assessment of all operations was conducted from the perspective of PZU Group’s value chain (see: PZU Group’s Business model and Value Chain). The PZU Group conducted an impact assessment of its operations and value chain on consumers and endusers, identifying both impacts as well as potential risks and opportunities. At the same time, the supply chain and the Group’s proprietary investments were deemed non-material for this topic due to their indirect and limited impact on consumers and end-users. A detailed assessment covered the key groups of individual clients of PZU Group entities. Due to the distant and indirect nature of the PZU Group’s impact on consumers of products and services offered by its business clients, this group was considered nonmaterial.
As part of the double materiality assessment, PZU Group identified the following groups that may be significantly impacted, taking into account customers with specific characteristics that could increase the scope of the Group’s impact:
all policyholders of life and health insurance offered by PZU Group entities, including potential clients, with particular focus on clients with disabilities and senior clients (individuals over 65 years old)
all policyholders of non-life insurance offered by PZU Group entities, including potential clients, with particular focus on clients with disabilities and senior clients (individuals over 65 years old)
all clients holding investment and pension products offered by PZU Group, including those with life and health insurance that include investment components
all Bank Pekao and Alior Bank retail banking clients, with particular consideration for individuals communicating in a foreign language (e.g. Ukrainian)
all patients of PZU Zdrowie Group, with particular attention to residents of rural areas and towns under 100,000 inhabitants.
Material impact of PZU Group
Offers services available to foreigners, e.g. in Ukrainian. PZU Zdrowie’s private medical care services are available in smaller towns. Positive impact on the mentioned above groups of clients and end-users:
PZU Group applies specialized data protection policies in accordance with EU regulations (see the section „Policies related to consumers and end-users”) in order to increase security levels and minimize the risk of data leaks. PZU Group also includes psychological aspects in policies, expanding standard coverage to include both physical and psychological clients’ health
PZU Group ensures high accessibility of PZU branches adapted for individuals with disabilities (77% of branches). Comfortable seating areas, tailored communication methods, and trained staff make PZU a senior-friendly institution. It is confirmed by the OK SENIOR certificate, awarded to PZU as the first insurance company in Poland
PZU Group ensures high-quality communication for investment products, increasing client and enduser accessibility to investment products with positive sustainable development impact. All products for which it is required by the regulation are accompanied by a so-called KID
the plain language initiative at Alior Bank and Bank Pekao has influenced the clarity of financial product terms, furthermore documents translation (into Ukrainian) for has increased the transparency of financial products terms clients who do not speak Polish fluently
the accessibility of services in over 600 cities and vast online offers has increased service availability for rural areas and small towns areas, where competition is limited.
Material risks
Despite positive actions, the PZU Group identifies areas for improvement and recognizes potential risks related to consumers and end-users:
potential material risk related to data protection. Despite implementing strict data protection policies, PZU has identified key risk due to complex data transfer chains and storage of medical data (e.g. medical data), as well as the severity of potential breaches
privacy-related risk, as PZU Group stores sensitive client data, which are exposed in the unlikely event of a leak
risk related to the increasing number of „false statements” and „omissions” related to ESG data, which PZU Group mitigates by disclosing extensive information
customers share their sensitive financial data, which carries a potential risk of privacy breaches. In the event of a potential leak of this data, it may pose a significant potential financial risk to the Group’s operations.
PZU Group actively supports its clients, particularly those more vulnerable to material risks related to their specific needs, such as elderly individuals, persons with disabilities, migrants and small towns residents
PZU Group’s initiatives that include adjusting products and services to client needs, transparent communication and tech support combined with rigorous data protection and responsible marketing practices are an integral part of Group’s sustainability strategy. By taking into account the specific needs of customers and developing modern solutions, PZU Group strengthens its positive impact and builds long-term relationships with clients.
Additionally, the PZU Group has identified opportunities related to adjustments tailored to the needs of seniors (further detailed in the next subsection – Clients and end-users with specific characteristics), as these adjustments open new and growing markets for the PZU Group. The company is one of the first on the market, which introduce these changes, positioning itself as a market leader and securing a significant competitive advantage over other market participants. Alior Bank implemented special activities to gain insight into the perspectives of customers who may be particularly vulnerable or marginalized. The company conducted a series of studies with children aged 7-13 and seniors over 80. Bank Pekao, on the other hand, modernized 12 branches, adapting them to the needs of people with disabilities.
PZU Group has conducted research to understand the specific needs of clients with particular characteristics. The assessment is based on a benchmark of European insurers and research institution reports. Key sources include Swiss Re Institute research on the senior savings gap, World Economic Forum analyses on financial stability among seniors and European Commission and Eurostat reports on European demographics.