European Insurers Meet the Growing Expectations of Stakeholders in Terms of Transparency and Dialogue Through Digital Channels

FT Europe 500 WEBRANKING BY COMPREND

18TH EUROPEAN INSURANCE SECTOR EDITION TRANSPARENCY STRESS TEST In an increasingly challenging and competitive environment, this analysis investigates how well leading European insurers meet the growing expectations of stakeholders in terms of transparency and dialogue through digital channels. Who is taking the lead?

Europe’s leading survey of corporate websites and the only global ranking that is based on stakeholders’ demands

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Key areas performance 3 Country ranking 5 Best in class (top 3) 18

The research measures the fundamentals Failing the stress tests implies a company of online corporate communications does not use digital communication as and dialogue on digital channels, a strategic tool for reputation, an based on stakeholder demands. approach that is vital in periods of transformation.

Contents

2 European Insurers face the communication stress test Webranking in numbers 4 Performance in key areas The research Webranking by Comprend is Europe’s 5 Country ranking – Insurance sector leading survey of digital corporate communications: 6 Comparing sector performances 7 Best in class th edition in Europe 8 Ranking of 36 insurance companies 18 9 How the research was carried out 830 companies ranked globally, 10 Who we are including Global 100 36 insurance companies 100 criteria and 309 measurements within the evaluation protocol, for a maximum score of 100 points

19 sectors included in the research in Webranking is the only global ranking that is based 41 countries on stakeholder input. 465 respondents to the two Webranking by Comprend questionnaires (Capital Markets survey and Careers survey)

1 | Webranking by Comprend European Insurers face the communications stress test

Webranking by Comprend works like a trans- Being able to articulate the company’s position Best improvers parency stress test: the stresses in this case on these fronts in digital channels and dem- originate on the one hand from the demands onstrate engagement in social media translate Friends Life of the most critical, time-pressed audiences not only into an ability to respond to potential 1 Group + 16.5 and on the other hand from the need to gain crises but to generate day in-day out an oppor- (Resolution) competitive advantage with respect to peers. tunity for building competitive advantage with The companies that pass this kind of stress key stakeholders. 2 Ageas + 11.5 test demonstrate an ability to govern their reputation in digital channels: they create an Considering 50 points out of 100 as the thresh- CNP 3 opportunity to build a “premium” status with old at which companies respond adequately Assurances + 10.9 key stakeholders, which can facilitate access to to market requirements, only eight compa- capital markets and translate into higher trust nies of Europe’s top 36 insurers passed the among consumers, the ability to attract the test in 2014. At the other end of the scale, six 4 Pzu Group + 10.0 best talent or to set the agenda on issues of companies scored less than 30 points, meaning importance to the sector. that they do not present a minimum of content expected by the market. The 22 companies The Webranking assessment judges compa- that are located in between only partially meet European insurers nies based on stakeholder needs – rigorously requirements, albeit presenting a moderate “passing” the test tracked through annual surveys of the most level of disclosure. authoritative and critical corporate audiences. Seen through the lens of the insurance indus- On a country level, German, Swiss and Dutch 1 Munich Re 62.4 try, the research evaluates a company’s ability companies are one step ahead in using to distinguish itself in an increasingly competi- transparency and dialogue for differentiating tive and challenging business environment: themselves in a competitive business environ- 2 Generali 62.3 aside from the overall positioning, the assessment. Munich Re wins by a very narrow margin ment looks at aspects that are critical for insur- in the insurance sector of Europe’s 500 biggest ers such as strategy, investment proposition, companies, followed by Generali and Allianz. 3 Allianz 57,1 governance and risk management, approach to climate change and strength of employer branding. 4 Aegon 55.2

Zurich 5 Insurance 51.0 Group Webranking is the only survey of online corporate communications that is based on the demands of actual stakeholders. That’s why it 6 Hannover Re 50.9 has the authority to test how well companies respond to the pressure of external demands to see which insurers are ahead in terms of transparency and dialogue in digital channels. 7 Axa 50.8

Staffan Lindgren, Managing Partner, Comprend 8 Aviva 50.6

Who passes the stress test? 8 6 Passed (50 and more points)

In review (from 30 to 50 points) Failed (less than 30 points)

22 Source: Webranking by Comprend 2014-2015. 36 insurance companies included in FT Europe 500.

2 | Webranking by Comprend Transparency stress test: performance of insurance companies in key areas

The insurance business is founded upon the trust that stakeholders – customers and investors alike – are willing to allocate to companies. Webranking assesses the sector’s transparency in digital communications as a key factor in generating competitive advantage in terms of reputation, credibility and access to markets.

How to translate It’s encouraging to differentiation into Webranking by Comprend see leading insurers a business success Insurance Sector responding to the most pressing chal- Companies of all sectors know that in order to 36 insurance companies in the FT lenges facing the compete they have to differentiate themselves Europe 500 index were evaluated industry. Building trust from their peers and, most importantly, com- in digital channels also municate this efficiently to get an advantage. 13 Insurers face an even bigger challenge in differ- European countries represented means demonstrating entiation because their products and services 4 new entries thought leadership on tend to be similar and exposure to risks such such issues and offer- as demographics and to changing regulatory Assessment of corporate websites in English ing a clear indication environments are common to all. Through the by means of a 100-criteria protocol Webranking research, we have picked out six of how companies key trends for the insurance sector that give us intend to navigate a snapshot of how this segement is positioned them going forward. overall in this fast-evolving scenario. 38.2 points Insurance sector average +2.3 (vs 2013-2014) Joakim Lundquist, Head of Comprend in Austria, points 39.1 Italy and EU 500 average / +1.5 Switzerland

1 Convincing the market 2 Risk and governance in the insurance business Our survey of capital market participants reveals that easy access to decision-critical information is crucial. Investors and While disclosure documents and financial presentations are analysts need to understand how a company is managed, what standard content for investor relations across sectors, for insur- strategies it applies and what financial results are in order to ance companies it’s key to explain risk factors as well as growth make informed decisions. Whether the capital market considers drivers, and describe how good governance helps underpin a company a trustworthy investment is partly in the hands of the the long-term strength of the company. This may vary from the organisation itself by communicating efficiently and building a approach to climate change risks to challenges posed by new good reputation. regulatory environments.

• Insurance sector performance 2014-2015: • Insurance sector performance 2014-2015: in “Investor relations”: 28% of max score in “Governance”: 35% of max • Trend: • Trend: improving (23% in 2013-2014) declining (39% in 2013-2014) • One to watch: • One to watch: Aviva lays out its investor proposition clearly and succinctly Munich Re provides ample and clear explanation of its gov- explaining how it expects value creation going forward as a ernance, covering topics such as risk management and long- result of cash-flow generation and growth. This introduction term incentive plans. Among “focus topics” such as climate sets up the more specific overview of strategy, which is ac- change and Solvency II regulations, the German reinsurer also companied by several management videos. dedicates ample space to emerging risks it sees as impacting its prospects in the future.

3 | Webranking by Comprend 3 Gaining trust through 4 The war for talent responsibility Considering demographic developments, companies should know that they do not only compete for customers and market Corporate social responsibility is another area where the best share, but also for the talented people that they need to thrive. performing companies outpace laggards by a great margin. However, the European insurance companies do not provide ef- Considering how corporate responsibility tends to presuppose a ficient communication towards potential employees since nearly long-term view of the business that is totally in keeping with the a quarter does not post any vacancies on their websites, only nature of the insurance business, it is surprising that only two- seven out of 36 present their pay and benefits structure, and thirds of European insurers capitalise on this and present a CSR about a third give no contact information for applicants. report while a fifth don’t even present a code of conduct. Not acknowledging these basic requirements means missing out on • Insurance sector performance 2014-2015: the possibility of building trust as a responsible business. in “Career”: 40% of max • Trend: • Insurance sector performance 2014-2015: improving (37% in 2013-2014) in “CSR”: 30% of max • One to watch: • Trend: Allianz has long been recognised for its investment in recruit- improving (26% in 2013-2014) ment and now features an application process optimised for • One to watch: mobile devices as well as the desktop plus video tutorials Allianz stands out for its decision to publish its sustainability on how to apply. The German company also has a successful report directly in the pages of its corporate website, boosting Facebook page dedicated to careers. transparency and ease of access to all stakeholders. Alongside management information and performance data (with a close eye on visual communications), the Munich-based company provides articles and stories about issues that are most relevant to insurance and asset management such as access to finance, climate change and demographic change.

5 Open to dialogue 6 Technology at the service of users with stakeholders As growing numbers of people access the web (even corporate information) from mobile devices and digital penetrates further Today, the appropriate digital channels for building a solid into daily routines and working life, pressure is mounting to relationship with stakeholders include social media. However, give users fast, intuitive access to relevant content. Technology communicating corporate content via social media, such as must not become a barrier when other online sources can offer disclosure, but also job offers, press releases and basic company alternatives. Our survey of corporate web managers showed information, is not the top priority of any of the companies adapting to mobile as a key priority. Most companies are mov- included in this research. Only seven out of 36 obtain a score ing towards responsive design, which allows a single website to above the average, mostly due to their engagement on LinkedIn, adapt to the screen resolution of different devices. while Facebook and Twitter tend to be neglected. • Insurance sector performance 2014-2015: • Insurance sector performance 2014-2015: 24% of websites are responsive in “Social media”: 33% of max (vs. European average of 39%) • Trend: • Trend: stable (32% in 2013-2014) improvement (9% in 2013-2014) • One to watch: • One to watch: Nigel Wilson, chief executive of Legal & General, posts Zurich has opted for a responsive website with a drop-down weekly commentary on a blog about issues in the financial menu that allows for a more dynamic page layout of different services industry or that are particularly important for the UK elements – text, image, charts and video. The Swiss com- company’s clients. The insurer engages on these issues via pany’s “Knowledge” thought leadership hub can by explored Twitter (with a hashtag especially for the blog) and solicits by type of media, covering reports, videos, infographics, blog topics on its Facebook and LinkedIn accounts too. posts and case studies.

4 | Webranking by Comprend How does the insurance sector measure up?

While the average performance of the 36 insurers broadly matches the average score of the wider FT Europe 500 index, there are no areas where the sector shows a particular outperformance, despite the specific nature of its challenges. Overall, insurance is the 8th best performing industry out of 19 with a score that is narrowly above the average for all companies.

On a positive note, the insurance sector average gained 2.1 points to 40.5 points, outpacing the wider index where the average was 39.1 points (+1.5 points).

But only a handful of top insurers are taking a strategic and systematic approach to digital as a means to respond to the most urgent needs of their stakeholders and strive for competitive advantage. The top eight companies managed to “pass” the stress test by achieving more than 50 points out of 100. Their communications offerample inspiration to their 26 peers that fell short of the mark, which need to respond to this situation with a renewed focus on the clear benefits such an approach can bring.

Performance by sections Insurers vs. Europe 500 Start page and functions

100% About us Social media 90%

80%

70% 30% 60%

50%

Career 40% Press 30%

20%

10%

CSR Reporting

% Insurance on max Governance The share % EU 500 on max

Source: Webranking by Comprend 2014-2015. Investor relations The section "social media" merges all criteria regarding social media spread to the different sections of the research.

5 | Webranking by Comprend Country ranking – Insurance sector

The most transparent country in the insurance sector is Germany with the top three performers getting 56.8 points on average. In fact, three out of four of the German companies are in the sector top 10 and Munich Re and Allianz in the first and third place respectively. Germany’s good performance is also confirmed by its third position in the general Europe 500 Webranking evaluation.

Switzerland and the Netherlands follow. The best Swiss insurers got an average score of 47.2 points, thanks to the good performance of Zurich Insurance Group (5th). The Dutch, with two companies in the top 10, received an average score of 45.1 points.

With the highest number of insurance companies included in this evaluation, the UK placed 4th (44.9 points on average for the top three). Friends Life Group (previously Resolution) was the best improver among insurance companies.

Finally, Italy and France record the lowest average scores, 44.8 and 38.9 points respectively, although they both manage to have one company in the Top 10 – Generali in 2nd position and Axa th7 .

The countries with only one company included in this sector analysis are (in al- phabetical order): Austria, Belgium, Denmark, Finland, Norway, Poland and Spain.

France Germany Italy

TOP 3 38,9 TOP 3 56,8 TOP 3 44,8

Axa 50,8 Munich Re 62,4 Generali 62,3

Euler Hermes 35,9 Allianz 57,1 Mediolanum 37,2

Scor 30 Hannover 50,9 Unipol Gruppo 34,8 Finanziario

Netherlands Switzerland UK

TOP 3 45,1 TOP 3 47,2 TOP 3 44,9

Aegon 55,2 Zurich Aviva 50,6 Insurance 51 Group ING 47,9 Old Mutual 42,6 Baloise Delta Lloyd 45,7 RSA Group 32,2 Insurance 41,4 Swiss Re 44,8 Group

6 | Webranking by Comprend In finance, the insurance sector outdoes banks, real estate and financial services but remains just above the average

The Chemicals sector is the most transparent in In the middle of the table, Insurance, Industrial Europe, with 24 companies scoring an average Goods & Services, Telecommunications and of 45 points. Food & Beverage score very close to average.

Health Care and Utilities come in second and The Banking sector with 56 companies the big- third with average scores of 44.3 and 42.9 gest in numbers recorded a low average of 36.2 points respectively. points, but still above the other financial sectors Real Estate and Financial Services, which averaged only 33.5 and 28.5 points respectively.

Performance comparison by sector Average by sector

50% 45,0 44,3 42,9 41,9 41,6 41,4 41,0 40,5 40,4 40,3 40,3 39,7 38,2 FT Europe 500 average 40% 36,2 34,0 33,8 33,5 32,5 30% 28,5

20%

10%

Chemical Utilities Automobiles Personal Industrial Food Technology Travel Real estate Financial (24) (25) & parts & household goods & beverages (15) & leisure (12) services (15) good & services (22) (14) (17) (26) (69) Health care Oil & gas Costruction Insurance Basic Banks Media Retail (23) (34) & material (36) resources (20) (56) (22) (24) (20) Telecommunications (23)

Source: Webranking by Comprend 2014-2015

The companies included in Webranking by Comprend are categorised in 19 supersectors according to the ICB (Industry Classification Benchmark) methodology.

7 | Webranking by Comprend Best in class Insurance companies in Europe 500

munichre.com 1

Thanks to a slight increase in score, Munich Re reaches the top of the chart, with 62.4 points.

The German company has the most complete IR and CSR sections compared to its peers.

generali.com 2

Despite a slight loss in score, Generali manages to stay in the top 3 as the runner up, and the difference is only 0.1 point to the first place.

With 62.3 points, the Italian insurer distinguish- es itself for the good results in the financial sections, such as Reporting and Share.

allianz.com 3

Another German insurance company closes the top 3. With 57.1 points, Allianz holds the third position for the second year in a row.

Its Career section is the most complete of the sector.

Best Improver friendslifegroup.com (+16.5)

Thanks to a 16.5-point increase, UK insurer Friends Life Group jumps from 31st to 22nd place, with a total score of 37.3 points, achieving a good result especially for the technologi- cal features of its corporate website.

8 | Webranking by Comprend Comprend Webranking 2014-2015 classification – Insurance

2014 position Difference 2013 position Company 2014 score Country 1 y 2 I Munich Re 62.4 Germany 2 x 1 I Generali 62.3 Italy 3 ; 3 I Allianz 57.1 Germany 4 y 8 I Aegon 55.2 Netherlands 5 y 7 I Zurich InsuranceFinancial Services Group 51 Switzerland 6 x 4 I Hannover Re 50.9 Germany 7 y 15 I Axa 50.8 France 8 y 10 I Aviva 50.6 UK 9 y 14 I ING 47.9 Netherlands 10 x 5 I Tryg 47.3 Denmark 11 y 13 I Baloise 45.7 Switzerland 12 ; 12 I Swiss Re 44.8 Switzerland 13 x 9 I Swiss Life 44.5 Switzerland 14 x 5 I Sampo 43.3 Finland 15 x 10 I Old Mutual 42.6 UK 16 ; 16 I Vienna Insurance 42.3 Austria 17 y 22 I RSA Insurance Group 41.4 UK 17 y 23 I Gjensidige Forsikring 41.4 Norway 19 y 26 I Legal & General 39.6 UK 20 y 21 I Direct Line Insurance 39 UK 21 y 29 I Ageas 37.8 Belgium 22 y 31 I Friends Life Group 37.3 UK 23 x 18 I Mediolanum 37.2 Italy 24 x 20 I Standard Life 36.6 UK 25 x 24 I Euler Hermes 35.9 France 26 – n.a I Talanx 35.1 Germany 27 x 17 I Unipol Gruppo Finanziario 34.8 Italy 28 – n.a I Delta Lloyd Group 32.2 Netherlands 29 x 28 I St James's Place 31.5 UK 30 x 27 I Scor 30 France 30 x 24 I Prudential 29.9 UK 32 ; 32 I CNP Assurances 27.9 France 32 – n.a I UnipolSai 26.9 Italy 34 x 30 I Admiral 25.1 UK 35 x 33 I PZU Group 23.1 Poland 36 x 34 I Mapfre 18.3 Spain

Note

The maximum score is 100 points. The 36 companies were Previous rankings can be found at selected from the FT Europe 500 index 2014 and belong to q comprend.com/webranking the ICB supersector 8500 Insurance. Each site was evaluated twice by different researchers between the beginning of July I Compared to last year four companies newly became and August 29th. part of the FT Europe 500. Talanx, Delta Lloyd Group and Unipol Gruppo Finanziario were upgraded to FT Europe 500 The companies included in Webranking by Comprend are (UGF had been previously evaluated in the Italian country categorised in 19 supersectors according to the ICB (Indus- edition.) UnipolSai is a new brand, founded by the merger try Classification Benchmark) methodology. of Unipol and FonidariaSai in January 2014.

9 | Webranking by Comprend How the research was carried out

Webranking by Comprend, now in its 18th European edition, is the most in-depth analysis of online financial and corporate communications in Europe. Webranking by Comprend is a valuable instrument not only for measuring the effectiveness of a company’s online communication, but also for comparing results with national and international peers. The study evaluates the English language version of corporate websites, excluding commercial sections.

The stages of the research How we evaluated the companies

The research consists of three steps. First of all, every year We- The Webranking by Comprend 2014 protocol includes 100 crite- branking by Comprend criteria are updated based on the results ria divided into 10 sections for a maximum score of 100 points. of questionnaires dedicated to capital market and employer Starting from 2012, the criteria dedicated to social media and re- branding stakeholders in order to reflect new needs. search were redistributed within the other areas of the research, in order to underline how social media should be integrated The second stage is the analysis of the responses to the surveys within corporate communication. The score for social media and and the preparation of a protocol of evaluation, used to analyse search test criteria and subcriteria was 7.9% of total score. all the companies included in the Webranking by Comprend research. The section on financial information (financial reporting plus IR, share and corporate governance information) remains the most The last step is the data analysis and the presentation of the re- important and accounts for 44 points, one point more than in search results, in addition to the collection of international best the 2013 edition. practices and trends.

In Europe, the research ranked the 500 biggest companies by Key figures market value (based on the FT Europe 500 index), while national rankings consider the countries’ biggest companies by market The research Webranking by Comprend is Europe’s capitalization in June 2014. Therefore, at a European level a total leading survey of digital corporate communications: of 684 companies were evaluated and 830 globally (including th Global 100 ranking and classification for Middle East and North 18 edition in Europe Africa). 36 companies in Insurance sector Sector rankings of the companies in the FT Europe 500 index are compiled as well that are based on the ICB sector classification. 684 companies ranked in Europe The European classification included 36 insurance companies in 2014. 500 companies in FT Europe 500 830 companies globally including Global 100 100 criteria and 309 measurements within the evaluation

Stages of the research

1 2 3 4

Research Protocol Ranking Results

465 replies Evaluation protocol 36 of FT Europe 500 Publication to the two the surveys containing 100 criteria insurance companies Interactive online report Awards (capital market and 309 subcriteria analysed Insights and employer branding) for a total of 100 points 830 globally

10 | Webranking by Comprend Who we are

Digital Corporate Communications The Webranking by Comprend report – At Comprend we believe in creating stronger, more engaging Digital Corporate Communica- An interactive online tool tions solutions for our clients. We combine communications knowledge with digital exper- The results from Webranking by Comprend is tise. available to companies in an interactive report, which also serves as a tool for companies when Our international clients rely on us for their IR, evaluating their websites. media, CSR, employer branding, internal communications and social media. Our work has The report describes a company's performance global reach and successfully supports world- within the different areas of th research, wide as well as local market-specific initiatives. highlighting its strengths and challenges. The analysis includes an action plan equipped with We are a team of 60+ professionals with offices international and sector best practice examples in Stockholm, London and Lisbon. We have and with trends of digital communications. partners in Milan; as well as group partners in the H&H Group: Hallvarsson & Halvarsson and The report is also available for companies not Springtime. included in the Webranking results lists, as the criteria can be used to improve communica- For further information check the website tions of all companies, including not listed q comprend.com companies. This is made available through the On demand report.

For more information about the reports please see q comprend.com/webranking/report

To order your Webranking by Comprend 2014-2015 report or to get more information and insights please contact:

Helena Wennergren Phil Marchant Head of Marketing Managing Director UK +46 70 971 12 10 +44 203 700 5554 [email protected] [email protected]

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11 | Webranking by Comprend