Unipol and voluntary work
Unipol Assicurazioni traditionally dedicates its Social Report to a good cause, a charity that can have a powerful ethical impact, enabling Unipol to return to its roots in the democratic Italian movements of cooperation and the world of the employed and self-employed workforce. These movements have always been at the forefront of the universal struggle to emancipate the weak and provide social solidarity. The UN has dedicated 2001 to voluntary work. This is a wonderful oppor- tunity to promote voluntary work, to launch new ideas and projects and to reflect on motivation as well as the social and political meaning of volun- tary work today. Voluntary work is a vital resource for society, a vision of the world to unite all men and women with goodwill, to give a voice to those that cannot be heard, to defend and protect the personal dignity of man. We asked Don Ferdinando Colombo from VIS (Volontariato Internazio- nale per lo Sviluppo - Voluntary Work for Overseas Development) to write the foreword to a small booklet detailing the history of Italian legislation with regard to voluntary work. This booklet will be distributed together with Unipol’s Social Report. Unipol applauds and embraces the work of VIS because it is an organisa- tion that spreads an important concept, one that is perhaps new to many, “that people involved in voluntary work and politics based on justice, do not intend to help the less fortunate in terms of ‘charity’, because of a feeling of moral duty, but rather because of the basic rights (civil, politi- cal, economic, social and cultural) accorded to all men because they are men. We must no longer focus on the needs of the poor, whom we help because we are good people, but rather on the right of access to those opportunities and freedoms indicated by Amartya Sen as vital to human development.”1
(1) Antonio Raimondi - VIS Chairman Contents
Foreword III
1 } FIRST SECTION – THE IDENTITY Values and mission page 4 Our stakeholders page 5 The history of Unipol page 7 Shareholding structure page 9 The role of the Unipol Group in an international context page 10 Strategies page 11 Innovative products page 12 Life assurance page 12 Pension funds page 13 Subsidiaries page 14 Linear Assicurazioni page 14 Unisalute page 15 Quadrifoglio Vita page 16 Noricum Vita page 16 Unipol Banca page 17 Unipol SGR page 18 Newly acquired companies page 19
SECOND SECTION – PRODUCTION AND DISTRIBUTION 2 } OF ADDED VALUE
Economic activity page 20 Added value page 23
I 3 } THIRD SECTION - SOCIAL RELATIONS Consumers and customers Special agreements page 24 Claims page 25 Fraud page 27 Customer feedback page 27 ‘Unipol Risponde’ page 28 Right to information page 28 Online information page 29 Relationships with consumer associations page 29
Agents and personnel Sales network page 30 Personnel page 32 Training page 33 Safety in the workplace page 34 Pension fund and healthcare fund page 34
The community The Cesar Foundation page 35 Unipol Regional Councils page 36 Unipol and the world of further education page 37 Environmental protection page 37 Unipol and corporate social responsibility page 38
II Foreword This year Unipol presents its eighth Social Report, the only insurance company to do so and the only Stock Exchange listed company that can boast such continuity and coherence in adhering to the principles of social auditing: completeness, comparability, inclusiveness, development, policies and procedures, distribution, external auditing, constant improvement. This report is drawn up according to GBS guidelines (Social Report Study Group), for greater methodological coherence and improved readability. The most recent and important innovation is the introduction of the verification of this Social Report by the auditing company, in order to guarantee to the reader reliable and accurate data.
III First Section
Values and Mission
01 } To contribute to the reliability and transparency of the Italian insurance industry.
02 } To help make insurance a tool for the benefit of society and the security of the individual and businesses.
03 } To accept risks and settle claims honestly and coherently. 04 } To aim for customer satisfaction in price, performance and quality of service.
05 } To consider individual and group contributions as essential to the overall development of business, in that human creativity and intelligence are indispensable factors in improving service quality.
06 } To help partners (trade-unions, organisations of self-employed workers) achieve their aims and carry out their policies.
07 } To provide exclusive products and services to partners so that their members can obtain better cover at better prices and conditions.
08 } To produce a positive economic yield and increase company solidity, to increase the economic value of the company and remunerate shareholders.
09 } To contribute to job-creation and help developing countries by making specifically targeted investments.
10 } To work for a political and economic role of the Social Economy both at home and abroad.
4 Unipol Assicurazioni The Identity
the year. Total dividends increased Our stakeholders from ITL46.2bn in 1999 to ITL74bn in 2000 (+60.2%). The most important people for a company – commonly known as Employees Stakeholders – are all those who Unipol had a total of 2,607 have an interest in the organisation. employees at 31st December 2000, The Social Report is addressed in the insurance sector alone. 48.8% especially to these people to allow of these are women. them to assess whether Unipol’s operations are consistent with their Agents demands and interests, and to what Agents are the operating structure extent these operations match the of Unipol. They are divided into pri- general aims outlined in the Values vately-owned and associated (‘Assi- and Mission. Unipol sees stakehol- coop’) organisations. ders as vital and improvements are designed with them in mind. The diagram shows Uni- pol’s stakehol- ders.
Shareholders The very good results mean that the unitary divi- dend is the same as for 1999, despite the significant incre- ase in shares issued following the increase in capital halfway through
Social Report - 2001 Edition 5 First Section
Customers of the social economy, safety and Today Unipol has approximately 4 rule of law. This foundation also million customers, both individuals provides in-depth analysis of in- and companies, for which the spe- surance themes and promotes cial agreements are a privileged environmental protection and so- channel of access. cial equality projects.
Partners include trade-unions (CGIL, Suppliers of services: surveyors, CISL, UIL) and organisations repre- medical examiners and car repair senting the self-employed and small shops. and medium-sized enterprises (CNA – craft workers, ‘Confesercenti’ Surveyors total 315 in the motor –shopkeepers, CIA – farmers, and sector alone. They are self-employed ‘Lega delle Co-operative’ – Lega co- and have a close relationship with operatives). The makeup and ope- Unipol. rational methods of Unipol Assi- curazioni have thus been strongly There are 210 doctors. They are influenced by these associations. self-employed and have a close rela- Relationships with customers, part- tionship with Unipol. ners and society as a whole are monitored by the Unipol Regional Car repair shops are small firms Councils (‘CRUs’) and the Cesar operating together with Unipol as Foundation. part of the agreement between The Association of Car Repair Shops • CRUs: Unipol is the only Italian and ANIA. By the end of 2000 Unipol insurer to have set up regional had established a computer connec- planning structures to enable tion with 1100 workshops. dialogue with its customers.
• Cesar Foundation: the Cesar Foundation is the tool used by Unipol to operate in society to encourage the culture and values
6 Unipol Assicurazioni The Identity
In 1986 Unipol became the first The history of Unipol co-operative-based organisation to be floated on the Italian Stock The first shareholders in Unipol Exchange. were a group of Bolognese and Emi- lian co-operatives. They acquired the Over the years the list of Unipol sha- company in 1962 and made it part of reholders has grown to include some the vast Italian co-operative system of the most important European and represented by the Lega co-opera- mutual insurers, ranging from MACIF tives. Unipol’s growth was boosted and MAIF (French mutual insurers) when trade unions, first UIL, then and the P&V Group (Belgium) to CGIL and CISL, became sharehol- certain Italian shareholders (Reale ders. Several years later Unipol Mutua Assicurazioni, Banca Cardine shares were also acquired by trade and Bam Group). The latter two associations (CNA, ‘Confesercenti’ became shareholders as part of spe- and CIA). This new makeup of cial bancassurance agreements. the organisation enabled Unipol HISTORIC PARTNERS OF THE UNIPOL GROUP (figures as at 31/12/00) to become insu- rers of not only Co-operative Enterprises Members of Legacoop co-operatives Turnover > 57,000 bn but also Enterprises: No.>10,000 employees and Employees: No. 239,000 Members: No. > 4,800,000 the self- employed. Trade Unions of salaried workers (CGIL, CISL, UIL) Members: No. 10,900,000
Trade Organisations of self-employed workers (CNA - craft workers; Confesercenti - shopkeepers; CIA - farmers) Members: No. 1,120,000
Social Report - 2001 Edition 7 First Section
In the first half of the 1980s Unipol In 2001 the Unipol Group signed Assicurazioni became one of Italy’s a co-operation agreement with the top ten insurance groups. It was floa- Monte dei Paschi di Siena Group. ted on the Stock Exchange in 1986. The acquisitions made in 2000 mean that Unipol is now the third largest insurance group in Italy with over 4 million customers.
The Unipol Group signs a 2001 co-operation agreement with the Monte dei Paschi di Siena Group. Unipol Banca acquires Listing on the Stock Exchange 51 bank outlets from 1990 of ordinary shares. Banca Intesa.
1986 Listing on the Stock Exchange 1962 of preference shares. Federcoop 2000 and a group of Bolognese and 1961 Unipol acquires Emilian co-op- Founding of the 5 companies (Aurora eratives acquired company by the Assicurazioni, Meie Unipol, which was Buglione family, Assicurazioni, Meie Vita, not yet trading owners of Lancia. Navale Assicurazioni and at the time. 1969 BNL Vita) to become the Start-up of third largest insurance Life business. group in Italy. 1996 1963 Start-up of Company Non-Life business. capital increase First policy issued. by ITL273bn + issue of warrants for the equivalent of ITL91bn, exercised from 1/7/97 to 31/12/99.
Unipol becomes the eighth 1999 largest insurer in Italy.
8 Unipol Assicurazioni The Identity
Shareholding structure
A total of 50.2% of Unipol’s ordinary share capital is owned by FINSOE, the holding company which is con- trolled by the Italian co-operative movement and is thus the majority shareholder. The remaining 49.8% of the ordinary share capital and 100% of preference shares is floa- ting capital quoted on the Italian Stock Exchange.
53.4% co-operatives STOCK mutuals and banks EXCHANGE 46.6% 50.2% 49.8%
50.2% on Ord. Cap. (Insurance Company 49.8% on Ord. Cap. - on Pref. Cap. and Parent Company) 100% on Pref. Cap. 30.5% on Total Cap. 69.5% on Total Cap.
Insurance Banking and Managed Bancassurance Companies Savings Companies Companies
Social Report - 2001 Edition 9 First Section
The role of the Unipol Group in an international context
NETWORK OF UNIPOL’s ACTIVITIES IN AN INTERNATIONAL CONTEXT
ACME The Association of European Co- operative and Mutual Insurers is made up of 39 insurers from 22 European countries. The association is a research institute and discussion forum for members.
EURESA Euresa is the holding company and In the face of new regulations and GEIE formed by Unipol and its inter- new scenarios, Unipol policy remains national mutual partners: MACIF, that of following current develop- MAIF, P&V, Folksam, HUK Coburg ments to ensure that the Group is and LB (Denmark). part of a system of global alliances and international relationships. This ICMIF system is based on the traditions and The International Co-operative and values shared by mutual insurers and Mutual Insurance Federation repre- co-operatives in the countries of the sents 118 insurers from 64 coun- European Union. Unipol is a member tries. of such international organisations as ACME, Euresa and ICMIF, enabling the Group to meet current challenges as part of a network positioned on various levels.
10 Unipol Assicurazioni The Identity
As already stated, Unipol acquired a Strategies controlling share in the following insu- rers during 2000: Aurora Assicura- In 2000 Unipol Assicurazioni deve- zioni, Meie Assicurazioni, Meie Vita, loped its strategy of concentrating Navale Assicurazioni and BNL Vita. on increasing the size (also through On the banking side, the Group acqui- acquisitions) of the insurance sector, red 51 bank outlets from Banca Intesa and diversification into the banking (finalised during the first few months and managed savings sectors. This of 2001). This, together with the cur- was achieved through major opera- rent growth plan, will allow Unipol tions which have significantly altered Banca to triple the size of its distribu- the makeup of the Group. tion network by the end of 2001.
GROUP STRUCTURE
INSURANCE SECTOR BANCASSURANCE SECTOR BANKING AND MANAGED SAVINGS SECTOR
Products/ Single- Sales Products/ Single- Sales Products/ Single- Sales Services purpose co.s network Services purpose co.s network Services purpose co.s network
OUTLETS BANK PRODUCTS INSURANCE UNIPOL ASS.NI LIFE PRODUCTS NORICUM VITA (CARISBO / AGENCIES AND AND SERVICES PRODUCTS AND B.POP. ADRIATICO) SUB-AGENCIES BANK PRODUCTS FOR BANK SERVICES MEIE/AURORA QUADRIFOGLIO BAM UNIPOL BANCA LIFE PRODUCTS MANAGED SAVINGS OUTLETS VITA OUTLETS TELEPHONE / MOTOR PRODUCTS LINEAR INTERNET BNL MAA / AAF LIFE PRODUCTS BNL VITA OUTLETS HEALTH CARE UNISALUTE AGENCIES/GROUP PRODUCTS AGREEMENTS/INTERNET UNIPOL ASS.NI FINACIAL LIFE PRODUCTS SALES POINTS MARINE AND AGENCIES NAVALE BROKERS WITHOUT MEIE/AURORA TOURIST ASSISTANCE INTERMEDIARIES PREMIUM INCOME 2000 ITL 972 bn +21% OPEN PENSION FUNDS UNIPOL ASS.NI (excluding BNL Vita) INSURANCE PREMIUM INCOME 2000 CLOSED PENSION FUNDS AGENCIES ITL 5,192 bn +92,0% MUTUAL INVESTMENT UNIPOL FONDI Partnerships in FUNDS Banking and Finance Businesses UNIPOL BANCA 2000 FINEC MERCHANT MERCHANT BANK DEPOSITS ITL 936 bn BANCA CARDINE MANAGED SAVINGS CUSTOMER FUNDS AND MPS BANKING SERVICES CITIBANK ASSETS U/MANAGEMENT ITL 6,091 bn
BANK OUTLETS PRODUCTS ASSOCIATED FINANCIAL DISTRIBUTED SPECIALISED SALES POINTS TO INDIVIDUALS COMPANIES INS. AGENCIES
Social Report - 2001 Edition 11 First Section
• Insurance programme for third Innovative products party liability of companies. • Merloni Law – Public Works: a Unipol offers two main types of Non- specific programme of assistance Life insurance products: insurance for companies as a 1) Personal Insurance result of the obligations deriving 2) Commercial Insurance. from new regulations. • ‘Inarcassa’ Agreement: designed Personal insurance: ‘Full Time’ for the pension funds of engineers (24 hours a day guarantee for acci- and architects. dent and assistance), ‘Multigaranzie’ • Multi-coverage for the self- (multi-coverage for the individual), employed: full range of insurance ‘Unimedica’ (health), ‘Multirischi Abi- solutions for the self-employed to tazione’ (multi-risk household insu- safeguard their professional acti- rance), ‘Globale Fabbricati’ (building vity, assets, health, savings and insurance). future pension.
Commercial insurance: ‘Modular’ (craft workers and small busines- ses), ‘Agrinova’ (farms and holiday Life assurance farms), ‘Sicurhotel’ (hotel sector), ‘Sicurezza Esercenti’ (shops, bars, Unipol and its sales network offer etc.), ‘Responsabilità Civile’ (for the the full range of traditional and inno- self-employed, bodies, construction vative products on the market. 2000 and industrial firms). was a particularly interesting year in terms of the growth of life assurance The main campaigns during 2000 provided by Unipol in group policies, were as follows: open-end and closed pension funds, • Housewives Campaign: ‘Favola’ is traditional life assurance and newer a product integrating insurance forms of managed savings such as cover required by the laws for Unit-Linked policies. housewives.
12 Unipol Assicurazioni The Identity
Individual supplementary pension Pension funds schemes The two main tools used in 2000 to Unipol and supplementary pen- meet the demand for individual sup- sion funds plementary pension schemes were Unipol has a long history in the the ‘Unipol Previdenza’ and ‘Unipol supplementary pension fund sector Futuro’ open funds. as a result of co-operation with the Results were very positive indeed social partners and especially with and Unipol is now the third largest the trade unions. pension fund manager amongst insurers in terms of members. Unipol manages a total of 90 pension funds, for New projects a total value of New tax laws in Italy concer- ITL820bn (at ning pension funds and life 31/12/2000) and assurance came into force on with more than 1/1/2001. With this in mind 400,000 members. Unipol is in the process of provi- Group supplementary pen- ding new products sion schemes through its sales Unipol is engaged in three main network. These are types of group supplementary pen- very much life assurance products to sion schemes as follows: meet individual supplementary pen- sion scheme requirements. 1) Occupational pension funds for employees. 2) Sector pension funds for entre- preneurs and the self-employed. 3) Pension funds set up before No- vember 1992.
Social Report - 2001 Edition 13 First Section
Telesales Subsidiaries Telesales of insurance products (third largest insurer in Italy) began on an experimental level in the second half of 1996 and were exten- ded to the whole of Italy in 1997. Freephone The graph shows the growth of pre- 800-992233 mium income from telesales (in ITL billions). www.onlinear.it Internet The sale of policies via Internet LINEAR Assicurazioni represented 19% of Linear’s pre- mium income in 2000 (compared Linear Assicurazioni S.p.A. is the with 5% in 1999). Unipol Group insurer specialising in telephone and online sales of motor insurance. Linear’s mission is to provide a customised quality service at a very Premium income (ITL/bn) competitive price, in order to meet the increasing demand on the part of consumers for products with an excellent price/quality ratio. Market share Linear is one of the main players and has a market share of between 13 and 14%, a level unchanged compa- red to 1999.
14 Unipol Assicurazioni The Identity
UniSalute Health and Assistance lines of business: breakdown of customers as at 31/12/2000 Freephone 800-114444 Heads insured No. Healthcare funds for www.unisalute.it professionals: members 180,000 Healthcare funds for shopkeepers: members 40,000 Unisalute is one of the two Italian Credit institutions: employees: 80,000 insurers specialising in health insu- Co-operatives: rance and is the only one that has employees and members 10,000 Public bodies: employees 10,000 special agreements with a network of Private enterprises: employees 10,000 medical centres. Individual policyholders 20,000 Unisalute provides healthcare plans Health: Total 350,000 for all types of medical expenses. The aim of Unisalute is to provide Assistance: Total 150,000 suitable healthcare coverage for all requirements, at acceptable prices, through the organised pur- chase of heal- thcare services.
Social Report - 2001 Edition 15 First Section
Quadrifoglio Vita Noricum Vita
Tel. 051 6096151 Tel. 051 6096029 www.quadrifogliovita.it www.noricumvita.it
Quadrifoglio Vita is the life assu- Noricum Vita is the Unipol Group rance company jointly owned by company which has been working Unipol Assicurazioni and Banca for some years in the life assurance Agricola Mantovana, set up in 1998, sector through bank outlets of the with products sold through the 289 Cardine Group, including those of branches of the bank and its part- the Cassa di Risparmio di Bologna ners. and the Banca Popolare dell’Adria- tico. A small co-operative credit bank, Banca di Bologna, is also part of the network. There is a total of some 320 bank outlets.
1200 Quadrifoglio Vita 1997 - 2000 GROWTH 1000 (premium income in ITL/m) 1999 1170 500,000 2000 473,699 800 399,785 +18% 400,000
600 +35% 297,224 765 300,000
400 +165% 200,000 499 112,171 200 474 404 379 100,000
0 0 premium income new business technical provisions 1997 1998 1999 2000
16 Unipol Assicurazioni The Identity
Unipol Banca
Freephone Deposits 800-998866 (in ITL/bn)
www.unipolbanca.it
Unipol Banca has implemented a distribution system designed to meet the needs of each geographical area. The supply structure is modu- lar and ranges from insurance agen- cies with financial advisers to finan- cial sales points and traditional bank branches, depending on the size of demand. The activities of the bank are in Customer funds fact based on the previous business Assets under management of an existing insurance agency in order to exploit existing demand potential and ensure a complete range of services and products for policyholders. Unipol Banca met all the targets set for 2000 concer- ning expansion of the distribution network. The number of operational branches grew from 24 to 36, mainly
Social Report - 2001 Edition 17 First Section
in Emilia Romagna and Tuscany. The number of financial advisers ope- rating in 17 financial sales points UNIPOL SGR and 123 insurance agencies grew to 270. These financial sales points and insurance agencies can use a con- Unipol SGR nection with the bank’s IT centre to supply standard banking products. Unipol SGR manages investment portfolios for third parties. It supplies Unipol Banca consolidated its struc- differentiated portfolio management ture during the first 7 months of lines in the retail sector (securities 2001 and now has 95 bank outlets and investment funds) using the (51 of which were acquired from Unipol Banca sales network (bank Banca Intesa). By the end of 2001 outlets and advisers). Unipol Banca had 100 financial Assets under management increa- sales points. sed considerably during 2000. The total level of investments managed by Unipol SGR at 31st December 2000 was ITL3,032bn.
18 Unipol Assicurazioni The Identity
Newly acquired companies
The second half of 2000 and the beginning of 2001 were significant for the growth of Unipol. The Group completed five acquisitions.
Aurora Assicurazioni S.p.A. – Naples
BNL Vita – Milan
Meie Assicurazioni S.p.A. – Milan BNL Vita Meie Vita S.p.A. – Milan
Navale Assicurazioni S.p.A. – Ferrara
Extraordinary general shareholders’ meetings of Meie Assicurazioni 2500 and Aurora Assicurazioni were Total premium th 2144.4 income held on 27 April 2001 to (in ITL/bn) discuss the merger of the 2000 two companies. The result was that Aurora Assicurazioni was 1500 merged into Meie Assicura- zioni. 1000 924.4 753.0
500 333.2 165.1
0 AURORA BNL Vita MEIE MEIE NAVALE Assicurazioni Vita Assicurazioni
Social Report - 2001 Edition 19 Second Section
• investments and liquid assets Economic activity amounted to ITL24,152bn, an increase of ITL14,203bn; on an Unipol Group consolidated annual equal basis as of 31/12/99, accounts – 2000 the increase was ITL2,817bn (+28.3%); At 31st December 2000 Unipol Group consisted of twelve insurance compa- • gross technical provisions increa- nies, three property companies and a sed from ITL9,412.7bn in 1999 services company, all of which were to ITL24,207.5bn at 31.12.2000 consolidated on a line-by-line basis (+17% without the newly acqui- (with the exception of BNL Vita for red companies). which only assets and liabilities were consolidated). A total of 21 compa- nies were included using the equity method. The results for the 2000 financial year show an improvement for all sectors of activity. Profit The following are some of the most (inITL/bn) 200 st 183.3 significant business aspects at 31 180 before taxation net profit December 2000: 160 140 135.7 • premium income increased to 120 ITL6,265.2bn, a growth of 74.8%; 100 83.9 80 73.4 60 • growth rate on an equal basis 40 was 13.7% (+7.3% in non-life 20 business and 22.5% in life busi- 0 31.12.1999 31.12.2000 ness);
20 Unipol Assicurazioni Production and distribution of added value
Annual accounts for 2000 of the Group premium income (in ITL/bn) parent company, Unipol Assicura- 7000 zioni 6000 6,265.2 5000 During the course of the 2000 finan- 4000 cial year, the thirty-eighth in its 3000 3,585.0 history, Unipol Assicurazioni made a 2000 series of major acquisitions in the 1000 insurance field. This led to a rapid 0 1999 2000 increase in the growth of the Group and also ensured very good ope- rating results for its core business. Net profits of the parent company amounted to ITL115.4bn by the end Breakdown of premiums of 2000, compared with ITL76bn in
2.1% 1.0% 1999 (+51.8%). 5.5% Life The most significant aspects of the 6.2% 37.5% Motor T.P.L. 2000 financial year were as follows: 6.0% Accident/Health Fire/Other damage to property 8.5% Land vehicles - own damage General T.P.L. • increase of 9.7% in premium in- Other classes come for direct business (premiu- Bonds/Credit ms up 10.9% overall) due to the 33.2% growth in life assurance which accounted for 30.2% of premiu- ms;
• significant improvement in the te- chnical result for non-life busi- ness;
• further reduction in the incidence of operating expenses on pre-
Social Report - 2001 Edition 21 Second Section
mium income (17.7% compared Total premium income to 18.3% in 1999); (in ITL/bn) 3500
• significant increase in investmen- 3000 ts (+24.5%) and related net 2500 3,053.6 2,752.3 income (+29.5% before value 2000 adjustments) partly due to signifi- 1500 cant capital gains (holdings and trading); 1000 500
• significant improvement in ordi- 0 1999 2000 nary and extraordinary results compared to the previous year (+49.5% and + 63.6%, respecti- Breakdown of premiums Life vely). 30.2% Motor T.P.L. Accident/Health Data summarising the annual 9.1% Fire/Other damage to property Land vehicles - own damage accounts for 2000 are shown in the General T.P.L. 7.0% Bonds/Credit table below. 36.3% 6.5% Other classes 7.4% Pecuniary losses 1.3% 0.8% 1.3%
FIGURES 2000 AMOUNTS CHANGES (in ITL/bn) 2000/1999 (in%) Total premium income 3,053.6 +10.9 Technical provisions 8,443.8 +10.6 Investments and liquid assets 10,207.6 +24.5 Net profit 115.4 +51.8 Shareholders’ funds 2,179.7 +68.5 Solvency margin surplus (*) 1,501.7 +118.8 Proposed dividend 74.0 +60.2
(*) Surplus on minimum solvency margin required by law
22 Unipol Assicurazioni Production and distribution of added value
Added Value Distribution of Added Value The table below shows how the Added Value is the aggregate taken Added Value is broken down among from the annual accounts given by Unipol’s internal and external the difference between the value stakeholders. of production (premium and invest- ment income) and the cost of providing insurance servi- Distribution of Added Value Amount % ces and the acquisition of Staff 121,665 15.2% goods and services. This Agents 399,205 49.9% aggregate is the increase in Providers of services 63,997 8.0% wealth created by Unipol as State bodies 92,123 11.5% a result of its core business. Financial partners 6,486 0.8% Shareholders 73,975 9.2% An analysis of the composi- Company assets 41,409 5.2% tion of Added Value allows Local communities 1,438 0.2% an “objective” assessment Total Added Value 800,298 100.0% of the social impact of a company. 0.2% The Added Value for Unipol 5.2% 15.2% 9.2% st Staff at 31 December 2000 0.8% Agents amounted to ITL800.3bn. Providers of services 1 1.5% State bodies Financial partners Shareholders 8.0% Company assets Local communities 49.9%
Social Report - 2001 Edition 23 Third Section
cial agreements were subsequently CONSUMERS AND CUSTOMERS extended to the associations. Activity in the area of special agreements will An insurer’s relationships with con- increasingly focus on partnerships so sumers and customers are varied that the service supplied is increasin- and complex and include products, gly the result of a genuine partnership the underwriting stage, the settlement between the insurer and the organi- stage, the ability to listen to custo- sation stipulating the agreement. mers and the right to information.
Special agreements
Special agreements are one of the main ways in which the insurer sup- plies services to the community. Desi- gned to strengthen Unipol’s close relationship with its partners, the spe-
IMPLEMENTED AGREEMENTS Premiums 2000 Var.% 99 Contracts 2000 Var.% 99 Salaried workers 237,060,863 - 0.78 232,689 + 3.28 Self- employed 122,640,957 + 2.35 105,549 + 3.77 Legacoop 19,676,425 + 54.04 14,986 + 65.81 Non-profit organisations 30,029,085 + 22.66 22,552 + 33.98 Pensioners 80,601,721 - 1.67 111,916 + 8.95 Other agreements 46,621,606 + 12.27 40,571 + 2.77 Total national agreements 536,630,657 + 3.29 528,263 + 6.70 Single company agreements 148,848,608 + 10.12 170,025 + 8.08
Total agreements 685,479,265 + 4.70 698,288 + 7.03
24 Unipol Assicurazioni Social Relations
Direct indemnity agreement and Claims reduction in settlement times
Claims reported and claims sett- During the period 1995-2000 the time led needed by Unipol for the settlement of direct indemnity claims increased A total of 332,956 claims were repor- by 1.7 days. At the end of 2000 Unipol ted during 2000, a decrease of 5-6% still took 5.9 days less than the ave- compared to 1999. Settled claims rage time required by the other insu- were as follows: rers that were party to the agree- ment: 48.6 days for the market as a whole and 42.7 days for Unipol. Claims settled 1999 2000 Var.% Unipol settlement service - by Sertel 60,957 56,524 -7.3 - by local offices 162,252 145,868 -10.1 - by headoffice staff 11,227 10,469 -6.8 The most significant aspect of Uni- pol’s settlement service is the Sertel TOTAL 234,436 212,861 Centre, the strengths of which are as follows: The following table compares the speed of Motor T.P.L. claim settle- a) The customer can report a claim ment (% ratio between claims settled by telephone by calling free- and claims reported) for Unipol and phone 800 99 33 88. the market as a whole. b) The computer network connec- 1998 1999 2000 ting car repair shops enables a more efficient service of direct Unipol 70.0% 68.3% 65.9% payment to the workshops and Market 64.6% 63.5% (*) the provision of additional servi- (*) not available. ces to the customer.
Social Report - 2001 Edition 25 Third Section
Disputes
The settlement policy recommended to local offices responsible for settlements is to quantify damage as quickly as possible, particularly where the liability of the Unipol customer is certain. Certain specific measures have been defined in an attempt to pre- vent fraud in the area of claims. “Anti-fraud” squads have been set up, allowing close co-operation between surveyors, medical exami- ners and lawyers, thus ensuring a detailed analysis of cases.
Motor T.P.L.: Breakdown of claims costs
3.00% 32.07% 20.58% Permanent disability <= 9% Cost of spare parts Permanent disability > 9% and death Cost of labour Other material damage
21.58% 22.78%
26 Unipol Assicurazioni Social Relations
Fraud Customer feedback
Unipol set up an “anti-fraud” squad In 2000 Databank conducted a qua- in 2000 to uncover and fight fraud. litative and quantitative study to The main aims of this squad are as analyse the image of Unipol Assi- follows: curazioni amongst customers, non- a) Prevention of fraud by identifying customers and opinion leaders. The and monitoring possible risk are- assessment of service quality was as. very positive in terms of the relation- b) Combating fraud through close ship between agents and customers. co-operation with the ANIA (Ita- It did however emerge that custo- lian Association of Insurers), ma- mers would like to see greater effort gistrates and police forces. on the part of Unipol to act in their c) Internal coordination of various interests. The assessment given by Unipol departments. customers is shown below.
Fraud data (2000) REASONS FOR INVESTIGATION Damages claimed and/or dynamics Unipol’s Image of the claim 71.2% (scale from 0 to 4)
Names reported 8.3% Ability to act in the interests of customers Doubtful policy requests 2.8% Others 17.7% Reliability of Unipol TOTAL 100% Product innovation SOURCE Unipol local settlement offices 81.7% Efficient management Management offices/sales network inspectors 6.5% Success of Unipol on the market Unipol agencies 3% ANIA special services/Authorities 2.9% Ability of agents Others 5.9% TOTAL 100% Receptivity of the agents
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 On the basis of reported fraud it would seem that the areas most at risk are Puglia, Sicily, Calabria, Lazio, Veneto and Campania.
Social Report - 2001 Edition 27 Third Section
Unipol Risponde Right to information
Companies must be open to dialo- gue and provide active and passive communication channels with indivi- dual customers, consumer associa- The ‘Unipol Risponde’ customer ser- tions and partners. vice (Unipol replies) recorded an Unipol uses the following tools to increase in activity during 2000, thus communicate with its stakeholders. confirming the trend of recent years. • The Social Report. A total of Unipol Replies publishes an annual 10,000 copies of the Social report detailing its activity. This Report are printed. It is also avai- report is sent to partners and consu- lable on CD ROM and online at mer associations. www.unipol.it. A summary of the report is translated into English for Unipol’s non-Italian partners. • The annual report from ‘Unipol Risponde’, intended mainly for consumer associations and part- ‘Unipol Risponde’: Activity summary ners. 1998 1999 2000 • More than 7000 copies of ‘Infor- Written complaints 734 937 968 maCRU’ are printed. This perio- Telephone complaints 1,321 1,546 1,713 Unipol: Total complaints 2,055 2,483 2,681 dical is intended for consumer associations and partners. ANIA(*): Total complaints 2,524 2,192 1,777 • The activities of the Cesar Foun- ISVAP(**): Total complaints 20,256 24,211 25,635 dation is another of the tools
Fines imposed by ISVAP 1 0 9 provided by Unipol Assicurazioni. This foundation provides infor- (*) National association of Italian insurers (**) Italian supervisory authority mation and analysis.
28 Unipol Assicurazioni Social Relations
Online information Relationships with consumer associations • www.unipol.it This site provides stakeholders and Unipol has always seen its partners the market with information con- (trade-unions and trade associa- cerning products on sale, annual tions, co-operatives) as the real accounts and events. representatives of the rights of insu- red workers. It is through dialogue • www.extranetunipol.it with these organisations that the This is a web community intended special agreements between Unipol for agencies. and trade associations are drafted • www.agenziaunipol.com and stipulated. This is the portal of the agencies’ Unipol has sought a close rela- websites. tionship with the leading consumer associations, which have become • www.bilanciounipol2000.it ever stronger over time. This dialo- This site contains economic and gue has become even closer due to financial information and the Unipol current interest in insurance topics annual accounts. in Italy (e.g. motor T.P.L. tariffs and supplementary pension schemes). The dialogue with consumer associa- tions is further consolidated by the fact that Unipol is more than intere- sted in the opinion and contribution of these groups concerning important matters such as the Social Report, the report published by ‘Unipol Risponde’ and the Unipol Regional Councils’ activities. ‘InformaCRU’ and the various other Unipol and Cesar Foundation publications are sent to the offices of consumer associations.
Social Report - 2001 Edition 29 Third Section
AGENTS AND PERSONNEL
No. of agencies by premium income
Sales network 180 164 1999 160 159 158 The network of Unipol agencies con- 2000 140 sists of privately-owned agencies 127 and associated agencies. 120 109 100 99 Privately-owned agencies 84 80 Agency activity shows that the rela- 60 tionship with customers is under- 60 going a cultural change. Agencies 40 are no longer mere distribution tools 20 12 but more than ever a means of dialo- 3 3 1 0 guing with customers, based on an 0-1 1-1.8 1.8-2.5 2.5-4 > 4 Assicoop(*) analysis of needs aimed at offering (in ITL/bn) solutions to meet those needs. (*) 1 = the Perugia “Assicoop” agency, which is privately-owned. The agencies have also developed the way they manage the pro- ducts and services provided. Sales network (as at 31/12/2000) They now use planned pro- 1998 1999 2000 cesses characterised by pre- Agencies 514 508 487 ventive analysis of customer Agents 742 754 714 targets and related needs in Full-time sub-agencies 884 865 877 order to offer relevant products Part-time sub-agencies 900 883 890 and services. 1767 Full-time salespersons 378 372 302 Part-time salespersons 184 189 150 452 Sales managers 160 165 184 Full-time/Part-time employees 1034 1030 1037
30 Unipol Assicurazioni Social Relations
Associated agencies NetworkARTICOLAZIONE of privately-owned RETE AGENZIE agencies PRIVATE There are currently 15 associated and AssicoopsE ASSICOOP in Italy IN ITALIA agencies, 10 of which are owned 7 2 11 by Unipol and its partners. They 73 37 AssicoopsAssicoop were responsible for approximately 47 10 64 26.4% of Unipol Assicurazioni pre- 15 4 11 mium income during 2000. They 40 25 13 also account for a significant market 17 53 share in their respective sectors. 4 19 2 Associated agencies have an exten- 19 7 8 sive distribution network in Italy, con- sisting of 79 agencies, 248 sub- 18 agencies, 124 salespersons and 59 42 financial advisers.
It is therefore a sales structure Privately-owned agencies No. 487 with excellent supply potential, con- Assicoops No. 79 Total No. 566 sisting of 919 professionals split between sub-agents, salesper- sons, financial advisers and Associated agencies: employees, so ensuring that the as at 31/12/2000 customer is supplied with the Agencies Premiums Agency Sub-agency Total best possible service. 2000 No. No. network BOLOGNA 147,668 13 26 39 FERRARA 29,387 5 15 20 FE - CNA 2,591 1 0 1 FIRENZE 30,896 2 7 9 FORLI’ 87,663 3 26 29 GENOVA 17,828 4 4 8 GROSSETO 32,934 6 24 30 IMOLA 20,956 3 8 11 MODENA 111,540 10 24 34 MO - CNA 16,078 1 5 6 MO - FRIGNANO 5,184 1 10 11 PARMA 35,452 4 20 24 RAVENNA 74,976 7 24 31 REGGIO EMILIA 109,736 16 34 50 SIENA 28,336 3 21 24 TOTAL 15 751,225 79 248 327
Social Report - 2001 Edition 31 Third Section
Personnel
By the end of 2000, after the acqui- sitions of Aurora Assicurazioni, Meie Assicurazioni, Meie Vita, Navale Assicurazioni and BNL Vita, which were added to Unipol Assicurazioni, Noricum Vita, Quadrifoglio Vita, Uni- salute and Linear, the Group had a total of 2,607 employees, exclu- ding the banking and financial servi- ces sector. The Unipol Group curren- tly accounts for approximately 6% of the entire workforce in the insurance market.
Breakdown of Unipol Group staff by insurance companies
As at 31/12/2000 Total Male % Female % UNIPOL 1,312 48.9% 51.1% NORICUM VITA 14 35.7% 64.3% QUADRIFOGLIO VITA 12 41.7% 58.3% UNISALUTE 95 34.7% 65.3% LINEAR 129 20.9% 79.1%
MEIE 493 58.6% 41.4% AURORA (and Agricoltura Assicurazioni) 382 66.1% 33.9% NAVALE 90 42.2% 57.8% BNL VITA 80 55.0% 45.0%
TOTAL UNIPOL GROUP 2,607 51.2% 48.8%
32 Unipol Assicurazioni Social Relations
The sales network – agents, agency Training middle management and employees, sub-agents and salespersons – was Personnel training increased signi- also heavily involved in training cour- ficantly during 2000 compared to ses. These were designed to incre- 1999: a total of approximately 500 ase the level of advisory and custo- employees attended training cour- mer services, and improve technical ses; attendance at computer courses and management know-how. A total was particularly high, with almost of almost 1,200 people from both pri- 300 people involved in advanced vate and associated agencies atten- software courses. ded training courses for a total of more than 200 teaching days.
In-house employee training Subject No. of courses No. of participants New employees 1 19 Computing 30 290 Foreign languages 12 37 Call centre advisers 2 41 Other technical and specialist refresher courses 7 104
Total 52 491
Agency personnel training Subject No. of courses No. of participants New life products and high financial content insurance products 21 259 Sales techniques and customer relations 43 431 Management courses for agents 19 163 Others 27 311
Total 110 1164
Social Report - 2001 Edition 33 Third Section
ded in the Pension fund as of 1st Safety in the workplace January 2001. A total of 1,525 people were mem- bers of the pension fund at 31st December 2000, and the employee In 2000 measures were taken to and company contributions amoun- improve safety in the workplace and ted to ITL46bn. Figures released on environmental protection. 30th April 2001 showed that a total Activities included: of 775 Meie, Aurora and Navale employees had joined, making a total of 2,300 members for the Health Unipol Group. prevention Accident and prevention check-ups The Healthcare Fund had 1,526 members at 31st December 2000. HEALTH This became 2,398 at 30th April AND SAFETY Fire AT UNIPOL 2001 with the addition of 872 Meie, Workstation prevention Aurora and Navale employees. A safety ergonomics total of more than ITL1.5bn was paid into the Fund during 2000, of Environmental which ITL215m was contributed by health employees. More than 6,100 payments were made from the Fund in 2000 for a Pension fund and total of ITL1.6bn. healthcare fund
The Pension Fund and Healthcare Fund were set up for Unipol Group employees in 1988. Employees of Meie, Aurora and Navale were inclu-
34 Unipol Assicurazioni Social Relations
cant social and economic vulnerabi- THE COMMUNITY lity. The Foundation combines this The Cesar Foundation objective with the social efforts of Unipol in the community, and The Cesar Foundation was set up represents Unipol’s social commit- by Unipol to promote European insu- ment with its analysis of insurance rance studies and social economy themes, social security and safety, research. The aim of the Foundation as well as dialogue, within the com- is to encourage in-depth debate munity. The activities of the Cesar between insurance market actors, Foundation can be divided into four consumer associations and acade- areas: insurance, social economy, mic and research institutions on the safety and prevention and social role of insurance in an age of signifi- projects.
Cesar Foundation activities
International Relations
} European Social Economy Pool } Cesar Europe Insurance Social economy
} Supplementary pension schemes } Research } Supplementary healthcare } Link with co-operative national } Motor T.P.L. insurance ç ç associations } ISVAP and institutions } Agreements with Unipol Regio-
} Consumer relations ç nal Councils Social Projects ç Safety and prevention }‘Idea Verde’ (‘Green Idea’) ç } ‘Sicurstrada’ } ‘Sicureuropa’ } Women in the Workplace ç Association Association } ‘Peter Pan’ Project } ‘Penelope & Ulysses’ }‘Vivere la Città’ (‘City Life’) }‘Mare e Giovani’ (‘Sea and Co-operation Agreements } ‘Sicurstrada’ Commit- } Regional monitoring Young People’) tees centres on the rule of law }‘L’altra Europa’ (‘The Other Europe’) - Ancorpari – Basilicata - ANVU } Link with ASAPS and – Calabria } Partners and regional projects - ASAPS ANVU – Lazio with: - Social Economy and Co-opera- – Lombardy – Abruzzo tion Documentation Centre – Puglia – Calabria - Ravenna Co-operative Association – Sicily – Liguria - Club 87 – Lombardy - ‘Don Peppino Diana’ Foundation – Molise - Effetto Europa’ (‘Europe Effect’) – Puglia - Gens – Sardinia - Guccione Foundation – Tuscany - Libera – Veneto - Masterform - ‘Temi’ Association
Social Report - 2001 Edition 35 Third Section
employees and the insurer in an Unipol Regional Councils atmosphere of dialogue and debate. There is a Unipol Regional Council Unipol Assicurazioni is the only Ita- in each Italian region, bringing lian insurer to have set up regional together trade union representatives structures for discussion and co- (CGIL, CISL, UIL), organisations operation with its customers. The representing the self-employed, Unipol Regional Councils (CRUs) representatives from associations are one of the most obvious practi- of small and medium-sized enter- cal consequences of the social eco- prises (craft workers, shopkeepers, nomy. A direct relationship between farmers), co-operatives and Unipol organisations representing internal structures.
THE STRUCTURE OF UNIPOL REGIONAL COUNCILS
Sales management and Development of sales inspectors Special agreements
Cesar Foundation, Safety, Chairman School and Local Council Committees
Marketing UNIPOL REGIONAL Local partners COUNCIL External relations and press office National partners. Agents
36 Unipol Assicurazioni Social Relations
Unipol and the world Environmental protection of further education Unipol is involved in promoting envi- ronmental protection and sustaina- Links were strengthened in 2000 ble growth both in terms of training with universities and regional bodies and by ensuring environment frien- to promote post-university training dly policies in the areas of purcha- using Unipol facilities. ses and consumption.
Agreements have been established Idea Verde with the universities of Bologna, ‘Idea Verde’ (‘Green Idea’) is a Padua, Castellanza (Varese), project set up in 1995 by two major Venice, Trieste and the Forlì campus partners (Unipol Assicurazioni and of the University of Bologna. CIA, the association of farmers) to Unipol has a special agreement with increase awareness of environmen- the following regional bodies: Ecipar tal protection and respect for nature (Rimini), Aldini Valeriani Foundation amongst young people. (Bologna), Sinform (Bologna), Ifoa (Reggio Emilia). Environment and consumption In particular the Cesar Foundation All Unipol policy adheres to current has become a centre for postgra- Italian environmental protection legi- duate courses of students dealing slation, with particular emphasis on with non-profit and social economy consumption, purchases and the organisations, while Unipol is an workplace. increasingly popular career choice for graduates in law, economics and commerce and engineering.
Social Report - 2001 Edition 37 Third Section
The document was signed by a Unipol and corporate group of leading enterprises and social responsibility the then Chairman of the European Commission, Jacques Delors. The mission of CSR Europe is “to For many years Unipol has been help companies pursue profitability, involved in corporate social respon- sustainable growth and human pro- sibility, not only in the drafting of the gress by placing corporate social Social Report, but above all by acti- responsibility at the centre of com- vely participating in working groups, pany business activity”. and as a national and international promoter of the concepts of corpo- rate social responsibility.
Q-RES
The Q-RES project was launched in Italy in June 2000. The “Quality of Corporate Ethical and Social CSR Europe Responsibility” project was set up by CELE, a research centre specia- Unipol became a member of CSR lising in corporate ethics based at Europe – The Business Network for the Carlo Cattaneo University Insti- Corporate Social Responsibility – in tute in Castellanza (VA). The mission 2001. This is an international asso- of Q-RES is “to promote a corporate ciation made up of 40 European vision based on the social contract enterprises, set up in 1995 under with the stakeholders, using a new the banner of “European corporate quality standard, audited on an inter- manifesto against social exclusion”. national level, for corporate ethical
38 Unipol Assicurazioni Social Relations
and social responsibility, capable of rative entities and the public sector, maintaining reputation and reliabi- was one of the promoters of this lity”. association. Unipol was involved from the outset thanks to the experience gained over the years from the Social Report. Unipol is currently in the process of drafting a code of ethics.
Cittadinanzattiva
Unipol cooperates with ‘Cittadinan- zattiva’ (‘Active Citizenship’) to pro- Impronta Etica mote civic responsibility. This movement acts to defend ‘Impronta Etica’ (‘Ethical Mark’) was human rights, to promote the practi- set up in 2001 to strengthen the Ita- cal use of social and political rights lian position within CSR Europe and and to protect the rights of consu- to exploit the experience gained in mers. the area of corporate social respon- sibility by those sectors involved in areas of public interest: finance, public administration and social eco- nomy. The aim of the association will be “to identify and connect all those organi- sations whose efforts in the area of ethics are a cornerstone of their pre- sence on the market and in society”. Unipol, together with a few other cor- porate entities representing co-ope-
Social Report - 2001 Edition 39 2000 SOCIAL REPORT
Editor: Giancarlo Brunello - Vice-President, External Rela- tions and CRUs
Project manager - Franco Malagrinò
Edited in co-operation with SCS AzionInnova - Bologna Cesar Foundation - Bologna
Graphics and page setting Ivano Pivetta - [email protected]
Translated by Ic.Doc - Bologna The Unipol Assicurazioni Social Report is also available on CD-ROM and online at www.unipol.it.
If you wish to be sent any of the following: a) The full printed version of the Social Report (in Italian) b) The full Social Report on CD-ROM (in Italian) c) The legislative guide to voluntary work and the non-profit sector in Italy(in Italian)
Please contact: Unipol Assicurazioni Direzione Centrale Relazioni Esterne e CRU Tel: +39 051 6437618 Fax: +39 051 6437600 email: [email protected]