ERV Global Report 2010

Germany Europäische Reiseversicherung AG ERV – Rosenheimer Str. 116 a growing international company 81669 Munich, Germany phone +49 (0) 89 4166-00 [email protected] www.erv.de

ERV views itself as an innovative service provider which builds on its core competence ERV Global Report as a travel insurance specialist. It has written travel insurance history for more than a century and, with a market presence in more than 20 countries, ranks among Europe‘s 2010 leading insurance providers. Drawing on its international network, ERV ensures that its customers receive optimum support before, during and after travelling.

Branches: Subsidiaries: Representatives / Sales Ofﬁ ces:

Italy Denmark China Europäische Europæiske ERV China Travel Service and Reiseversicherung AG Rejseforsikring A / S Consulting Ltd. sede secondaria in Italia Frederiksberg Allé 3 601 / F, Bld. C., East Lake Villas Corso Venezia, 48 1790 Copenhagen V 35 Dongzhimenwai Dajie 20121 Milan Dongcheng District, France Beijing 100027 Poland Compagnie l‘Européenne Europäische d’Assurances S.A. Mexico Reiseversicherung AG 41, Rue des Trois Fontanot ERV Mexico Representative Offi ce Oddzial w Polsce 92024 Nanterre Cedex (Paris) c/o Seguros Atlas, S.A. ul. Chmielna 101/102 Paseo de Tamarindos No.100 PB Russia 80-748 Gdansk Colonia Bosques de las Lomas CJSIC „European Travel Insurance” Deleg. Cuajimalpa Portugal Of. 78, bl. 7/1 05120 Mexico DF Europea Seguros de Viagem St. Koroviy Val Av. da Liberdade, 200 Moscow, 119049 Thailand 1250-147 Lisbon ERV Thailand Representative Offi ce Sweden c/o Thaivivat Insurance Public Co., Ltd. UK Europeiska Försäkringsaktiebolaget 71 Dindaeng Road., ETI-International Travel Protection (publ) Samsen Nai, Phaya Thai First Floor, Albany House Allén 6A / Box 1 Bangkok 10400 14 Bishopric 17213 Sundbyberg (Stockholm) ERV’s business activities Horsham Turkey Spain West Sussex, RH12 1QN ERV Sigorta Aracilik Hizmetleri Ltd. Sti. Compañía Europea de Seguros S.A. In line with its international growth ERV maintains branches in the United The international strategic alignment is Abdi Ipekçi Cad. No:61 Reasürans Han 2 Avenida de la Vega, 24 strategy, ERV evaluates its presence and Kingdom, Italy, Poland and Portugal and also strengthened by the membership of Kat:6 34367 Maçka-Sisli / Istanbul 28108 Alcobendas (Madrid) activities in the various markets on an has a sales offi ce in Turkey. The company ERV and its European companies in ETIG ongoing basis. In the fi nancial year 2010, is one of the leading travel insurers in the (European Travel Insurance Group), an Czech Republic the company continued to conclude local markets of these countries. These association of European travel insurance Evropská Cestovní Pojištovna A.S. insurances directly and under reinsurance international operations are supplemented companies, which guarantees ERV‘s vir- Krížíkova 36a contracts in almost all classes and types by representative offi ces in China, Thailand tually complete pan-European presence. 186 00 Prague 8 of cover associated with travel insu- and Mexico, fl anked by additional coopera- The companies of ERV are market leaders Ukraine rance through its companies in Denmark, tions with insurance companies in the in Denmark, Germany, Austria, Portugal, CJSC „European Travel Insurance“ Germany, France, Sweden, Spain and the Baltic States, Australia, New Zealand and Sweden, Spain, the Czech Republic and 5, Spaska St. Czech Republic. The companies in Russia the USA. Ukraine. Kiev, 04071 and Ukraine, which were formerly holdings,

(0211) have been operating as wholly-owned subsidiaries of ERV since November 2010. 13.01.064 Germany Europäische Reiseversicherung AG ERV – Rosenheimer Str. 116 a growing international company 81669 Munich, Germany phone +49 (0) 89 4166-00 [email protected] www.erv.de

Branches: Subsidiaries: Representatives / Sales Ofﬁ ces:

(0211) have been operating as wholly-owned subsidiaries of ERV since November 2010. 13.01.064 Always there at the right moment. Anywhere in the world.

Headquarter: Germany, Munich

Branches: Italy, Milan UK, London (incl. Ireland, Dublin) Poland, Gdansk Portugal, Lisbon

Subsidiaries: Denmark, Copenhagen France, Paris Russia, Moscow Sweden, Stockholm Spain, Madrid Czech Republic, Prague Ukraine, Kiev

Shareholdings: Austria, Vienna Slovakia (Austrian Branch) Hungary, Budapest

Sales Ofﬁ ces: China, Bejing Mexico, Mexico-City Thailand, Bangkok Turkey, Istanbul

Cooperations: Australia, Sydney Baltics, Riga New Zealand, Auckland USA, Cincinnati

Planned Cooperations: India, Mumbai South Korea, Seoul Japan, Tokyo

Development of key performance data 2010 2009 2008

Gross written premiums T€ 484,041.57* 440,703.77 400,586.41

Operating result T€ 5,709.92 7,514.36 -603.15

Administrative cost ratio gross % 5.5 10.4 11.3

claims ratio net % 57.5 55.9 56.2

* Segment Travel & Assistance according to IFRS Always there at the right moment. Anywhere in the world.

Headquarter: Germany, Munich

Branches: Italy, Milan UK, London (incl. Ireland, Dublin) Poland, Gdansk Portugal, Lisbon

Subsidiaries: Denmark, Copenhagen France, Paris Russia, Moscow Sweden, Stockholm Spain, Madrid Czech Republic, Prague Ukraine, Kiev

Shareholdings: Austria, Vienna Slovakia (Austrian Branch) Hungary, Budapest

Sales Ofﬁ ces: China, Bejing Mexico, Mexico-City Thailand, Bangkok Turkey, Istanbul

Cooperations: Australia, Sydney Baltics, Riga New Zealand, Auckland USA, Cincinnati

Planned Cooperations: India, Mumbai South Korea, Seoul Japan, Tokyo

Development of key performance data 2010 2009 2008

Gross written premiums T€ 484,041.57* 440,703.77 400,586.41

Operating result T€ 5,709.92 7,514.36 -603.15

Administrative cost ratio gross % 5.5 10.4 11.3

claims ratio net % 57.5 55.9 56.2

* Segment Travel & Assistance according to IFRS Preface by the Management Board

v. Hülsen Bader Haase

Our customers travel all over the world, cooperations. It is our intention to look innovative ideas and creative solutions and we go with them. In our capacity to the future together and to sustainably which will enhance our living, global of “helpers on the move“, we were well strengthen our international presence in network. prepared in 2010, as before, to support selected markets. To this end, we promote our customers in many different situations international exchange within our teams However, all our efforts to master the with our wide variety of travel insurance and their cooperation. This naturally in- growing challenges would be in vain with- products and services and our worldwide cludes the passion and enthusiasm con- out the commitment of our employees. service network. tributed by our employees from all over Our thanks to them for the contribution the world to giving our customers a good they bring to ERV each and every day and In global terms, it is our intention to con- feeling of security when they embark on for ensuring that our shared goals are verge towards forming a large community their travels. achieved. specialised in travel insurance in order to respond appropriately to the individual Cooperation based on trusting relation- Your ERV Management Board needs of our customers by offering the ships with our partners is also a concern right products and services. One of our high close to our hearts in our aspiration to priorities is therefore international colla- create and offer the best possible options boration with our subsidiaries, branches, to our joint customers. As before, our goal holdings, representative offices and in 2011 will be to evolve steadily through

5 Contents. Introducing ERV.

ERV – a company built on innovation 7

Innovative products and services 8

Awards as proof of strong customer orientation 11

e-commerce und social media 14

Corporate Business and Credit Card Business 18

An important mainstay of ERV 20

ERV international 22

Activities with ERGO and ERGO International 24

ERV and its international partners in 2010 26

Cross-border accounts 26

New accounts in 2010 26

Introducing our new subsidiaries 28

Interview with Myroslav Boichyn, M. D. of ERV Ukraine 28

Introducing ERV Russia 30

The representatives of ERV 31

The market in China – Interview with D. Wang, M. D. ERV China 31

Turkey – ERV Sigorta 33

The travel helper. Worldwide. In any situation. 34

Euro-Center – the worldwide assistance network 36

Outlook 38

The employees of ERV 40

6 ERV – a company built on innovation

7 Innovative products and services

Since the ”invention” of the first baggage insurance in 1907, ERV has been working steadily on developing innovative products and solutions to cater to customer needs in a fiercely contested market.

Optimised product range in Germany The impact of the financial crisis was also segments already forming the company‘s evident in the travel patterns of Germans core competence to create a service which ERV in Germany still relies on a flexible in 2010. ERV responded by making it is more than just an insurance product but range of products optimally tailored to easier for its customers to decide on a which is still compatible with the options meet the varying needs of both private holiday even in times of economic down- offered by ERV. The concept consists of and business travellers. The redesign of turn by offering them the "holiday bonus” creating and marketing an insurance our products in 2009 was welcomed by and by recognising short-time work as a product which will enable patients living our partners and customers alike. ERV has reason for cancellation under a travel can- in Denmark to travel abroad for medical been offering travel insurance products cellation policy. Sales in particular reaped treatment and surgery not covered by with or without excess since 2009, and notable benefit, showing that this was an the Danish public healthcare system. ERV in its Cancellation & Curtailment product important decision criterion welcomed by Denmark is in a position to be able to offer the company has developed a judicious many travellers. this kind of treatment at cost-effective combination of travel cancellation and prices in first-rate hospitals in Spain. travel curtailment insurance. A trend which ERV is likely to see in the years ahead is the shift away from out- To strengthen its position as a market going tourism to travelling in one‘s own leader for all facets of travel insurance country. ERV provides appropriate pro- ERV continued to develop new target tection for travel from the North Sea to groups and market niches in 2010. The the Alps through its products for tourism introduction of a new annual insurance in Germany, both for guests from Germany for bicycles in 2010 enabled ERV to offer and for those visiting from abroad. comprehensive insurance cover to the growing number of travellers journeying by bike. Moreover, in cooperation with Germany Lufthansa, ERV now offers the innovative ERV has written travel insurance "sunshine guarantee“ which secures finan- history for more than 100 years and cial compensation for rainy holiday days in is market leader among travel insurance all destinations worldwide. companies in Germany. It is a member of the ERGO Insurance Group and ERV offers premium service through its therefore belongs to Munich Re, one Medical Advice Service which is part of of the world’s leading reinsurers and travel cancellation insurance. Experienced risk carriers. travel doctors support customers who fall ill before their holiday in resolving the difficult question of whether they should cancel immediately or wait and see if ERV Denmark’s new Treatment Travel they get better. Almost every second business line journey since the start of 2009 has been saved through this service, which benefits At year-end 2010, ERV in Denmark launched travellers, travel agencies and, last but its new “Treatment Travel“ business line not least, ERV‘s own claims settlement. in the market for customers wishing to

travel abroad for medical treatment. The Artwork by the Danish artist Henry Heerup on the company basic idea is to newly combine product building in Denmark.

8 Contemporary insurance products search, rescue and salvage costs incurred. Denmark in Italy The advantage for hotel operators goes without saying: The greater willingness of ERV’s subsidiary in Denmark has been Parallel to and in addition to offering tradi- guests to book riskfree in advance enables operating in the market for more than tional travel insurance products, the Italian the operator to secure occupancy rates 80 years and is the country’s market branch is consistently developing new effectively by offering competitive prices leader for travel insurance. market niches and offering its customers for early bookers. Stornohotel has been ERV Denmark’s main business lines forward-looking products in response to very positively received by the Italian comprise travel insurance and inter- local market requirements. travel market and, since its introduction, national medical insurance offered has enjoyed steadily growing demand. through direct sales channels and in Stornohotel cooperation with insurance companies As the first and only insurance company and intermediaries. to date, ERV Italy identified the needs Italy of hotels in the mid-range and luxury categories at an early stage and responded ERV’s subsidiary which is based in by launching its Stornohotel product in Milan was founded in 2008 and, Emergency management the Italian market. Alongside hotel booking in its third year of business, has downpayments and cancellation fees, generated a remarkably good result. for partners Stornohotel also includes insurance for Since its founding, the branch has curtailment or prolonging a hotel stay tripled its premium income, which is Moreover, in “Europæiske Emergency without any extra charge. At the same an outstanding achievement given Management – EEM“, ERV Denmark time, the product covers travel delays the adverse economic environment. created a service to solve problema- and reimburses the policyholder with any tic situations in 2010. The aim is to provide partners with support when they have to rise to the challenge of mastering crisis situations. The range of services on offer also include, for instance, dispatching a qualified emergency team to the site of the accident, responding to incoming calls and handling press contacts. Over the course of the year, ERV registered a growing interest in this service, which is expected to hold steady in 2011.

EEM was also instrumental in acquir- Bild Firmengebäude Italien ing new, renowned customers who contacted ERV Denmark for more information about the new service and subsequently became insurance partners. Company building in Italy

9 Innovative products and services

next step on the way to successfully positioning ERV Italy as a competent insurance company specialised in the events sector – beyond a mere provider of traditional insurance products. Biglietto Sicuro promotes the early booking and sale of tickets and, on top of this, gives the ticket sellers more security in planning.

Customised solutions in the UK

Working closely with its cooperation partners, ERV in the United Kingdom creates customised, innovative solutions for brokers, travel agencies and online travel specialists. The aim is to ensure that policyholders have access to the best service wherever they are. ERV offers travel services designed to make travelling worry-free – to a standard that all customers should expect from their insurance providers.

In 2010, ERV UK extended its 24/7 services which include e-commerce solutions for corporate customers, sport and leisure products for activities such as skiing and golf as well as for Schengen solutions and products tailored to special travel needs.

United Kingdom "Biglietto Sicuro" – insurance cover for insurance with TicketOne, Italy‘s leading tickets supplier of tickets for concerts, shows and The UK branch of ERV, based in Following on from the resounding success other events. Biglietto Sicuro reimburses Horsham, London, has provided leisure of the Stornohotel product, ERV Italy the customer with the cost of the ticket if and corporate travel insurance and achieved another important milestone they are unable to attend due to sickness, travel liability products in the UK and by concluding an exclusive distribution accident or any other unforeseen event. Ireland since 2005. partnership for the Biglietto Sicuro ticket The launch of the ticket product is the

10 Awards as proof of strong customer orientation

The many awards and seals of approval won in the respective countries are clear evidence of the priority which ERV places on its customers when designing its products and services.

Seal of approval for ERV Germany’s ERV secured fourth place in the “Top 10 ERV’s Insurer Financial Strength of "A+“ products, customer orientation and Most Customer-oriented Financial Service was also confirmed by the international financial strength Providers“ ranking in 2010. ERV was there- rating agency Fitch Ratings in 2010. fore acknowledged as the best travel The outlook for the rating is stable. ERV The seal of approval from “Stiftung insurance company among the competing was given this rating as the first travel Warentest“, a German consumer protec- financial service providers. Alongside insurance company ever for the first time tion association, ranks among the most other aspects, the company‘s communica- in 2009. important awards to be conferred in tion with its customers, the standard of Germany. In a test carried out in 2010 support given by its employees and quality NANCIAL STRE R FI NGT by the “Finanztest“ magazine on the topic assurance were analysed. In addition, a RE H SU of travel cancellation insurances ERV‘s special award, was conferred on ERV for IN A+ products took first place as test winner. its high recommendation rate. Strong

The testers evaluated ERV‘s Cancellation ERV’s www.reiseversicherung.de website ww m w.fitchratings.co & Curtailment which is a combination of was subjected to meticulous scrutiny by travel cancellation and travel curtailment TÜV Süd, a German testing and inspection insurance. The product was tested in the organisation, and was issued the s@fer- categories of single versus annual policies shopping certificate. The website was as well as tariffs for individuals versus awarded a prize for its clear presentation those for families. ERV was awarded with of information, easy-to-use navigation and top scores twice for its Cancellation & attractive website design. Beyond this, swift Curtailment single insurance policy with- and error-free booking and settlement out excess, which makes it a winner for processes, as well as user data protection both categories families and individuals. and security, are also high priorities at ERV.

Qualitätsmonitor Deutschland-Tourismus (ERV’s quality monitor)

Since 2007, ERV has been working More than 20,000 guest interviews together with the German National were conducted throughout Germany Tourist Board on a project which goes in the 2010 / 2011 survey. The by the name of ”Qualitätsmonitor detailed findings form a platform for Deutschland-Tourismus” aimed at the German federal states, municipal- German consumer protection association improving tourism products and ser- ities and cities to benchmark their “Stiftung Warentest“ vices offered in Germany and at making offers against competitors, to critically them more attractive to private and review and assess the results of their business travellers. own marketing and sales activities, and to identify trends.

11 Awards as proof of strong customer orientation

ERV wins the best insurance Excellent customer evaluation in Poland ERV Sweden wins ”The specialist award of the year Best Press Room” award in the Czech market A customer survey carried out for the third time in a row in the months of June and A very special honour In 2010, ERV was voted best insurance October 2010 has assured ERV’s Polish was conferred on ERV specialist of the year for the third time by branch an exceptionally positive evalua- Sweden in December the Czech Association of Insurance Bro- tion by their policyholders as a trusted 2010: The company kers. Along with other awards conferred and reliable insurance partner. The annual won ”The Best Press by the travel sector and various Internet survey is used for quality assurance Room”, an award organ- finance portals, this prize is confirmation purposes and is an important indicator ised by My-Newsdesk News Exchange that the company still sets the standards of customer satisfaction with the service Site, in the bank, finance and insurance of service quality in its niche business. of the branch in general and its claims categories. MyNewsdesk acknowledges ERV’s subsidiary in the Czech Republic handling in particular. ERV Poland‘s companies which optimise the use of worked together with more than 350 aspiration in 2011 as well is to identify their PR webpages by producing high- agencies in 2010. Without its popular the needs of its partners and customers quality press material and making it service concept, which is tailored to at an early stage and exceeding their easily accessible, thereby achieving customer requirements, it would not have expectations by providing them with a high profile and level of perception been in a position to generate stable first-rate service. for their press releases. revenues in this segment. The company was selected for the ninth time in a row as ”Being awarded the prize for the best the best Czech travel insurer in an annual Poland press room of the year is a great honour survey conducted by the high-profile TTG ERV has been represented in the and proves that we have succeeded in newspaper. Polish market through its branch since our efforts to integrate our social media, 2004. Within a very short space of Twitter, blogs, Facebook and videos The direct sale of insurance products via time after its founding, the company into our traditional public relations work. its own website has enjoyed steady growth established itself as a reputable "Above all, it is extremely gratifying that rates for years, receiving additional impetus partner and first-rate pro-vider of we as a small company can hold our own from the prestigious "Bronze Crown 2010" travel insurance products in the Polish against the giants of the industry and award conferred on it by the Financial travel insurance market. The branch shows that we are working effectively Academy. The prize was awarded to ERV had already achieved profitability by with communication”, commented Chris- for its annual multi-trip product which took the third year of its existence and has tina Karlegran, Chief Communications first place among 63 nominated products consistently and steadily built up its Officer of ERV Sweden. in the non-life insurance category. business since then.

Czech Republic Sweden The Czech subsidiary of ERV based in ERV Sweden, headquartered in Prague, can look back on 18 successful Stockholm, was established in 1921 years and, in the financial year 2010, and is the market leader among succeeded in safeguarding its pioneer- Swedish insurance companies in ing role as an innovative, international providing travel cover for individuals travel insurance company. and business travellers.

12 13 e-commerce and social media

Using new media to position products and services in the market is playing an increasingly important role today. The companies of ERV have risen to the challenge and have committed themselves to developing e-commerce-solutions, offering mobile services and expanding their activities in the area of social media.

Expansion across all business lines For instance, a selection of topics of cur- identify other important payment systems in Germany rent interest to travellers are selected and for travel insurance customers, and ERV is addressed on the homepage. currently working on their implementation. Focusing on the "customer@ERV" The customer is increasingly becoming Under the "Optimisation for the Customer" Mobile commerce – the pivotal point of ERV’s thought and project, certification of our online presence ”The Third Revolution” action. This approach requires a new was obtained from TÜV (German Technical The new generation of smartphones will mindset across all areas throughout the Inspectorate) which officially confirms that change the travel industry for ever – and whole organisation. Processes, products, travel insurance can be purchased safely companies must adjust their processes terms and conditions and booking options on ERV‘s secure and trusted website. Data accordingly. These two statements sum- are reviewed for their compatibility with protection and data security to the highest marise discussions at the Global Tourism customer friendliness and changed accord- standard as a prerequisite for buying travel Conference. ingly. Among other measures, this has insurance is a matter of course for ERV. resulted in addressing customers in line One in ten people in Germany uses their with the respective target group and their Searching and finding have always enjoyed mobile phone to buy, and the number is needs. ERV will be rising to this challenge a high priority at ERV. The optimal design set to grow. The forecast is that, by 2012, in 2011 and beyond. The aim is to offer of its travel insurance website has enabled every fourth German will own a smart- the customer genuine value-added in order ERV to achieve a better ranking and ad- phone. Against this background, it is a to gain the competitive edge over other vance to first place in the search results of logical step for ERV to use this medium – travel insurance companies and move search engines. albeit independent of platforms. The reason away from substitutability and compara- behind the mobile internet boom is the bility – in other words, to create a unique Online measures place importance on clear- rising popularity of smartphones and net- selling proposition. ly stating the risks involved in travelling books, lower download charges and better (“No holiday without travel insurance“) and, mobile broadband availability. The event The issue of "customer-friendliness@ERV" in addition, indicating what travel cover is of the smartphone has clearly shown the has merited its own very important project essential for the different target groups. way: people want Internet while they are as part of focusing on the customer. An A tip worth remembering: taking out an an- on the move – which is why ERV wishes example is evaluating what products and nual insurance pays off for anyone intend- to make its content available to customers services and what benefits travel insurance ing to make more than two trips a year. via mobile, with genuine value-added. customers can expect from ERV before, during and after a trip. ERV will, of course, A number of features aimed at improving Commitment to social media respond to consumer feedback and use it communication between the customer and ERV goes whereever its customers go – to improve its products and services. ERV and achieving greater independence in social networks. It is therefore a fore- from opening hours have been envisaged gone conclusion that ERV will become Optimised website for 2011. New communication technolo- more active in 2011 in respect of social ERV’s strong orientation towards the cus- gies, improved automated response options media. Social media open up huge tomer is also reflected in its German web- and simplified navigation are top of the list. potential for brand communication – but site at www.reiseversicherung.de. ERV has In addition, ERV would like to give the cus- nonetheless presents companies with a been working consistently on improving tomer more flexibility in paying for its pro- great challenge. Facebook has meanwhile the website since its relaunch in April 2010. ducts. Surveys conducted have helped to attracted more than 500 million fans

14 worldwide but companies will only reach Apart from working directly with partners users if they connect to the fan page. in the travel industry, ERV also approaches Sponsoring Caroline The fan page is, however, only a basis, software companies selling to the travel Wozniacki Tried-and-tested and it is much more important to initiate industry and invites them to integrate its doubles activities or develop the relevant applica- software systems and web services there- As a world-class tennis player, Danish tions. Securing the loyalty of fans means by enabling the travel industry to sell their Caroline Wozniacki is on the road more generating relevant, exciting content (e. g. products more effectively. than 300 days a year. She therefore games, discussions, voting, etc.). Social needs to be safe and well insured at media at ERV has been developed in such In January 2010, ERV Denmark launched all times. ERV Denmark is very proud a way that the content fuels dialogue – it its new B2C website, improving not only that Caroline and her family have has to be fun. A precondition is knowing on the design but also on the booking chosen it as their preferred travel and understanding your customer group flow. The conversion rate of visitors to the insurance company. She has been extremely well: in essence, comprehending website into customers was raised signif- engaged as a partner in advertising the soul of the target group. An impor- icantly. Over the course of the year, ERV the product and brand of the company tant effect is using the opportunity for also leveraged synergies between its suc- for more than five years. dialogue, as ERV can learn much about cessful TV commercials and its website. the perception of the brand and products With the aim of enhancing its brand and has access to stimulus directly from The concentration of ERV on a social and raising sales, ERV has worked the customer. Of paramount importance: media strategy plays an important role in consistently with Caroline Wozniacki listening carefully! the Danish market. ERV Denmark initiated in its advertising, which has enabled it numerous activities in this area over the to promote its brand and products on An international project has been created year 2010: It took up monitoring social numerous media platforms. Caroline’s to bring ERV-countries "closer together". media, put a series of viral videos with advancing to become number one Together, members of the project created Caroline Wozniacki and ERV on Youtube, player in the world ranking has made a social media strategy which is to be developed a Facebook fan page and a her a more familiar face not only in Den- implemented in 2011. Additional measures Facebook campaign where users could play mark but also in the rest of the world. include developing and launching vibrant online tennis against Caroline, promoting campaigns locally. ERV‘s sponsorship of her in a sophisticated and innovative way.

Denmark: advertising icon integrated into online campaign

Travel industry web services integration (TIWI) is becoming an increasingly important part of ERV Denmark’s winning new contracts. A web-service tool was a prerequisite for concluding the contract and entering into cooperation with the World class tennis player Caroline Wozniacki ticket agent Billetlugen.

15 e-commerce and social media

Online portals are the main sales App developed for smartphones awareness. ERV Spain is currently working channel in Italy in Spain on optimising this e-tool with a view to offering new functions and making From the day the Italian branch took up its ERV Spain’s online sales are rising steadily downloads available from Apple Store and business activities its sales were focused year after year. This performance is Android Market. on e-commerce. All the branch’s important bolstered by the position ERV has taken partners in tourism sell the products of in the most important online search ERV via Internet, and the insurance pro- engines and the possibilities it has opened Spain ducts of ERV Italy can be bought online in up for buying its products via Internet. a few standardised steps. ERV Spain is the only company in the ERV Spain has recently developed an Spanish market specialised in travel The branch’s consistent online presence application for mobile phones, which makes insurance and has a market share has proven its worth and has considerably it the first Spanish insurance company of 35 %. In addition to a variety of enhanced perception of the brand in the to offer a free service package for smart- insurance products, such as baggage market. The gradual building up of social phones. The application can be used insurance or cover for delayed flights, media presence is viewed by the branch‘s to take out travel insurance and is both the company also offers outstanding as one of its most important tasks. a tool and a new, competitive product medical assistance services. that ERV Spain can use to raise brand e-commerce is a clearly defined strategic goal in Poland

The development of online business is also a clearly defined strategic goal of ERV in Poland. For many years now Polish customers have been able to log on to the branch‘s website and book their travel insurances. Tour operators and travel agencies can integrate travel insurance products through the branch’s booking assistants into their portals via a customised link. With the aim of remaining one step ahead of its competitors in the future as well, ERV is steadily developing its booking technologies and cooperates with global online travel portals.

16 Sweden at the forefront of social media

ERV Sweden has been active in the field of social media since 2009 and intensified its work on these channels over the course of 2010. Its successful handling of the major crisis precipitated by the ash cloud in 2010 serves to highlight that ERV in Sweden plays a pioneering role in the field of social media.

Blog of ERV Sweden on the Icelandic ash cloud

Blog used for successful crisis management

The Communications Department was enquiries rose rapidly, which made the of charge and with a minimum of quick to evaluate the situation caused job easier for customer service staff effort. Within the space of one month by the Icelandic ash cloud in April 2010. to direct customers to the blog for the the company had more than 5,000 Before most media had even become current status. It collected customers’ people visiting the blog. Measured by aware of the problem, ERV Sweden most frequent enquiries and answered popularity, its regular website was one had started a blog called "Vulkanaska" them on the blog for all to see. It open- of the ten fastest growing websites (volcanic ash) on WordPress under ed up its Twitter, Facebook, blog and in Sweden, and the number of mobile http://vulkanaska.wordpress.com. This chat as additional channels through phone users visiting ERV’s webpages enabled all information on the ash which customers could contact ERV. soared by 200 %. As a result of this cloud to be published on one and the This was especially appreciated by the successful crisis management, which same site, which facilitated searches, many people who could not get home made intensive use of social media, allowed swift updating and included and were unable to make international ERV was invited to speak at a number Twitter Feed and links to airports and calls. By using the word "vulkanaska" of seminars, conferences and at the tour operators. When ERV extended in the blog URL, ERV Sweden was able Foreign Ministry. the chat on its website, the number of to top all search engine searches free

17 Corporate Business and Credit Card Business

18 19 An important mainstay of ERV

Despite companies having made extensive cost-cutting measures in the business travel sector, ERV was well able to hold its own in this segment in 2010 and corporate business has remained an important mainstay of ERV’s product portfolio, alongside the credit card business.

Well positioned in the German market off. The modular and individual solutions government should be emphasised as offered by "Corporate Travel Insurance a key success factor for the company‘s The credit card business is a market with Individual“, a product designed for corpo- corporate business in Denmark. huge potential in Germany, and ERV has rate travel insurance, cover market needs. been able to position itself excellently A look at demand for corporate travel In 2010, ERV successfully renewed its in this market in recent years. The sales insurance in 2010 as a whole shows that cooperation with leading Danish pioneers channels are manifold: tenders can be the level recorded in the pre-crisis years in the field of renewable energies with sourced through brokers, direct enquiries has not been reattained. plants and facilities all over the world, a or acquisition activities. business which holds much promise and As a general observation companies in potential in 2011. The credit card business is a key compo- Germany, especially if they are small or nent of ERV’s product range. Modular mid-sized, are not as aware of the necessi- At the end of 2010, ERV Denmark‘s Cor- components, such as travel cancellation, ty of insuring their employees on business porate Department was partner to around medical or baggage insurance, can be sup- trips as those in Sweden or Denmark, 60 % of the Danish market for corporate plemented by other types of insurances, for instance. There is much to be done in insurances across all business levels. examples being purchase protection, fully the way of raising an awareness of the ERV views this as both an honour and an comprehensive rental car insurance or advantages of business travel products, obligation which it intends to fulfil in 2011 ticket insurance. As a product provider, as well as involving other distributors such by extending its range of products and ERV can fulfil all its customers wishes in as brokers. services to cater to satisfying global re- cooperation with ERGO. quirements and the needs of the individual.

A number of tenders were successfully im- Expansion of corporate business in plemented in 2010. ERV anticipates strong Denmark Poland: number of customers doubled future growth in this steadily expanding in corporate business market. ERV is excellently equipped with ERV Denmark significantly expanded its product range and sales support. its corporate business by winning new The financial year 2010 marked a signifi- accounts and renewing a large number cant development in ERV’s focus on corpo- The crisis has left its mark on the corporate of existing contracts. This was achieved rate insurance. The branch relaunched its business travel sector: companies saved by keeping a steady eye on details, its corporate product range and was success- on hotel categories, and air and rail ex- claims handling service and fulfilling its ful in doubling the number of policyholders penses were curtailed, for the most part customers’ wishes – namely that their in- within a very short period. This gratifying at the cost of travel comfort. The sector surance partners all over the world conduct growth was especially bolstered by the had to cut costs. Nonetheless ERV was them-selves faultlessly with respect to heightened awareness of Polish compa- able to substantially raise the number of the remittance of tax levies and charges. nies of their obligation to offer employees policies directly concluded, a sure sign on business trips trusted comprehensive that last year‘s product relaunch with its In 2010, a number of international Danish insurance cover. This duty is not only being new features was the right decision. The companies, operating in a wide variety of taken seriously by companies with inter- three different options incorporated into sectors ranging from medicine to heavy national operations but is also meanwhile the products "Corporate Travel Insurance industry, were among the new customers. viewed as one of the fundamental bene- Compact" and "Incoming Business" and the In addition, the long-standing mutually fits employers should offer. The demand introduction of daily premiums have paid advantageous partnership with the Danish for customised travel insurance products

20 remains at a high level, and the branch is Scania Accidental coverage for municipalities consistently endeavouring to provide the ERV Sweden has entered into a very pro- The sales generated in this segment in best possible service to satisfy the special mising cooperation with Vabis Försäkrings the first year are indicative of a promising requirements of its sophisticated clientele. AB, a company which belongs to Scania. market share. Over the course of 2010, In the capacity of reinsurer, it will assume competition from the insurance company an excess of loss risk and will act as a "if“ and a decrease in premium rates resul- New accounts in Sweden reinsurer for corporate travel insurance ted in very few new customers being won and expatriate insurance (insurance in the accidental coverage business. ICA Banken and Skandia Banken have cover for employees seconded abroad) been ERV Sweden‘s new customers since for companies. ERV has also marketed the start of 2010 in the bank and credit card services through the channels of proactive Growth of corporate business in Spain insurance segments. Both banks operate information, redistribution of premiums a full range of Internet banking services and customer support. Business travel undertaken by the Spanish directed at the consumer as the main target suffered a severe setback in the wake of group. ICA Banken is the most success- IKEA the crisis experienced in Spain, a trend ful bank in Sweden in the sale of non-life ERV Sweden is IKEA’s global contractual which is even expected to accelerate in insurances to customers. ERV is partner partner for international expatriate busi- 2011. At the same time, corporate business to ICA Banken and Skandia Banken and ness. IKEA uses ERV’s claims handling net- in Spain had delivered a positive year-on- insures around 650,000 cardholders with a work in Sweden to process approximately year growth of 7.2 % by October 2010. comprehensive travel insurance and other 7,000 claims a year. customised add-on insurances. Steady, positive trend in the Czech corporate travel sector

Although the Czech travel market recorded generally modest economic growth in 2010, ERV’s Czech subsidiary nonetheless lifted sales by 5 % in its corporate travel insurance segment. Professional customer support, the company’s customary skill in the handling of claims, coupled with its flexibility and open approach to the needs of its customers enabled it to win new customers and sign contracts with key strategic partners in the financial year 2010 as well.

Leading broker experts have certified that ERV‘s business travel insurance products rank among the best insurance products in the Czech market.

21 ERV international

22 23 Activities with ERGO and ERGO International

In the context of ERGO’s strategy of internationalisation, ERV took the decision in 2010 of intensifying international partnerships with its sister companies, first and foremost those belonging to ERGO, and, beyond this, of implementing measures designed to strengthen its profitability. As a result, a number of contracts were renegotiated and unprofitable business consistently restructured. These activities will continue in 2011.

ERGO sales and distribution channels have established ERV and its products to promoting growth together with ERGO in Germany firmly in all sales channels of ERGO. in the growing markets of Central Eastern Becoming a member of the ERGO Group Stepping up sales activities, combined with Europe, South East Asia, Turkey, China and has opened up new sales prospects for a transparent product range, will ensure India. ERV sees huge opportunities in India, ERV through ERGO‘s exclusive sales that ERV is successful in conducting its for instance, where it is on the point of intermediaries. ERV offers selected solu- business through ERGO sales channels entering the market in cooperation with tions for private and corporate customers in 2011 as well. The regional support HDFC ERGO as risk carrier. through ERGO’s broker operations and structure and marketing to specific target the tied agents’ organisation of the ERGO groups proved their success in 2010. This In addition, ERV is cooperating with Munich Insurance Group. Accordingly, around structure will be retained in 2011 and busi- Re /Munich Health in pursuing a similar 30,000 brokers can now offer travel ness conducted via ERGO sales channels approach in other selected markets such insurance products from Germany‘s market will be intensified. as North America and Mexico. leader. Both sales channels release great potential in respect of winning new cus- ERGO International Portugal tomers, expanding the existing customer ERV is collaborating with ERGO on the base and raising earnings. Joint Travel Initiative (JTI) project to achieve ERV Portugal is a branch of ERV Spain organic growth through cooperation in and was set up in 2007. The company Sales and distribution through ERGO is set selected markets. The aim is to jointly has an excellent year of growth behind to become increasingly important for ERV build up the travel insurance business in it and, after three full years in the and will develop into an important main- new markets and to launch more product business, has positioned itself firmly stay, alongside tourism-related sales. innovations in existing markets. The in the travel insurance market. Extensive information and training events project reflects ERV’s strategic approach

ERGO Insurance Group

Europäische Reiseversicherung AG

Subsidiaries: Branches: Representatives / Shareholdings: Cooperations: Czech Republic Italy Sales Offices: Austria Australia Denmark Poland China Hungary Baltics France Portugal Mexico Slovakia New Zealand Russia (Spanish Branch) Thailand (Austrian Branch) USA Sweden UK Turkey (incl. Ireland) Spain Ukraine

24 Portugal: successful international cooperation with ERGO At the start of the year 2010, ERV Portugal signed an agreement with RNA (Rede Nacional de Assistência), a local assistance company, to operate as their risk carrier in the travel business. This business opportunity was offered to ERV Portugal by Victoria Seguros, a very well-known brand in Portugal. The relationship with this ERGO company has positioned ERV Portugal right at the top of the holiday travel insurance market. New opportunities have opened up since the first steps of this partnership were taken: At the end of the year 2010, ERV Portugal became liability insurer for the entire assistance services portfolio. The strong association with RNA has enabled the company to participate in this segment which is normally dominated by the assistance companies. The benefits of this close connection are twofold: securing a con- siderable sales volume and profitability guaranteed by ERV Portugal on the basis of a provision regulating the loss- and-expense ratio. New goals have already been defined for the support and promotion of this strong alliance with the aim of adding value to ERGO products through the features and benefits of a travel insurance. This win-win situation gives ERV Portugal access to a wider spectrum of consumers and ERGO products an opportunity of enhancing their competitive edge.

25 ERV and its international partners in 2010

ERV’s strategy of ongoing internationalisation enables it not only to acquire new partners in the local markets but also to offer its products and services to international players.

Cross-border accounts Czech Republic, Sweden and Denmark. New accounts in 2010 Thomas Cook also cooperates with the Lufthansa, Germany’s flagship airline and, local partners of ERV and the European New partners and contract renewals measured by the number of passengers, Travel Insurance Group in Hungary, Norway in Germany Europe‘s largest carrier has stepped up and Finland. ERV’s sales in the tourist industry performed and developed its partnership with ERV well in 2010. ERV won new partners and by including 14 new countries. In the near As part of the Thomas Cook Group and renewed contracts with existing partners. future, this number will be supplemented ERV’s partnership, Condor Flugdienst, Upon the release of the winter catalogue by many new countries. known as Condor for short, began to sell 2010 / 2011, holidaymakers were able to ERV products in Germany, Spain, France, take out travel insurance from ERV while By including Poland and the Czech Republic Italy, Poland, Portugal and Turkey in 2010. booking their holiday with tour operators in 2010, airberlin as the second largest Thomas Cook Reisen, Neckermann German and sixth largest European airline Travel24.com AG is a German online provi- Reisen, Bucher Last Minute or Air Marin. also raised the number of countries where der belonging to Unister GmbH, Germany‘s ERV products are available to 18 in total. leading platform for travel. The company Moreover, the long-standing collaboration provides information and interactive search with REWE-Touristik, Europe‘s number two Latvian airline airBaltic, nominated Airline and booking functions, along with facili- tour operator, was renewed for another of the Year 2009 / 2010 and winner of the tating the comparison of holiday trips on five years. The fact that travel agencies, “Gold Award“, signed a global distribution its website at www.travel24.com and its alongside tour operator groups, continue agreement with ERV on the sale of travel toll-free call centre service. Travel24.com to rely on ERV was especially affirmed by insurance at the beginning of 2010. sells ERV travel insurance products in AER and TSS, two of Germany‘s largest Currently 17 countries provide travel Germany, the USA and the Netherlands. travel agency cooperation networks, which insurance which can be purchased online The company intends to introduce these opted to renew their contracts with ERV from their websites. ERGO, with its local products into Switzerland, followed by for another five years. subsidiaries in Latvia, Lithuania and France, Italy and Spain. Estonia, handles the administration for The continuation of the partnership with airBaltic customers in the Baltic States. As most of ERV’s new and existing inter- the travel agency alltours Reisecenter ERV and ETIG members provide airBaltic national partners use ERV’s cutting-edge for another three years also serves to high- customers with travel insurance in the online booking engine, they can combine light ERV as a reliable and trusted partner. other 14 European countries. international travel insurance products The confidence of carriers and airlines in with process of booking airline tickets, the sustainability and innovative strength airBalticTravel.com is a subsidiary of travel or hotels. The products displayed of ERV is shown not least in the decision airBaltic. It was founded in response to on ERV’s e-commerce platform are cus- of Deutsche Bahn AG and airberlin to the growing demand for the customisation tomised to suit the individual customer‘s choose ERV: both these contracts were of travel packages. The company‘s online needs. The products offered via this plat- also renewed in 2010. sale of ERV products went live in the Baltic form range from a simple travel cancella- States, Germany, Finland and Sweden in tion insurance through to more complex Contract renewal with Danish December 2010. insurance packages which include medical, government accident and baggage cover. New customers acquired this year include Thomas Cook, one of the world‘s leading a series of important corporate customers. leisure travel and multi-channel tour ERV’s sophisticated e-commerce platform Alongside Novo Nordisk, Nilfisk, Advance, operators, has chosen ERV as its preferred currently offers travel insurance products Grundfos and the Wrist Group, ERV was travel insurance provider in Germany, the for a total of 26 countries worldwide. also successful in 2010 in winning the

26 Nortravel and Terrabrasil. Thanks to business with travel agencies, ERV Portugal has won access to 300 different companies which sell travel insurances. Clear competitive differentiation through innovative products in conjunction with technology were convincing arguments for its new customer Blueticket, one of the largest websites selling e-tickets for concerts and many other events.

Growth of more than 100 % is anticipated for 2010, which is confirmation of the excellent processes and range of products and services on offer to customers, permit- ting the structures currently in place to be retained unchanged.

ERV Spain wins AVIVA, Cuba online and Androméda AVIVA, based in the United Kingdom, is insurance program of the Danish govern- global tour operator Travelplan completed one of Europe’s leading providers of life ment for the next three years, which marks its successful entry into the Italian market insurance. Since acquiring Plus Ultra, the the continuation of a long-standing and and has been selling the products of ERV company has also been present in the mutually advantageous business relation- Italy in its catalogues since November Spanish market. ERV has made its inter- ship with the Danish government. 2010. Secondly, the branch was able to national healthcare assistance available convince TicketOne, Italy‘s largest seller to AVIVA, specially tailored to suit AVIVA In 2010, ERV Denmark embarked on its of tickets for concerts, shows and other policyholders. Cuba online is the name of cooperation with Billetlugen, a locally events, to enter into an exclusive coope- a company specialised in travel insurance based company that sells tickets for ration contract. And finally, the branch coverage for Cuban diplomatic delegates numerous events such as concerts, foot- has been successfully selling its travel and Andrómeda is a travel agency with ball games, festivals and theatre perform- insurance products via Mirabilandia, a travel incentives as its core competence. ances. Billetlugen provides cancellation high-profile specialist in leisure parks, for cover for people who purchase tickets half a year now. Cooperation with this UK: contract with large broker from their website, an insurance which is company takes special account of travel ERV UK has entered into a long-term integrated into its booking process. Both insurance products designed for families. business relationship with the Towergate sales and the volume of claims were most Unterwriting Group, the UK‘s largest inde- satisfactory in the first year. 300 new agencies in Portugal pendent insurance broker, which will assist The successful agreement concluded ERV to grow in the business of British Italy: partnership with tour operator with RNA means that, together with travel insurance. The partnership will also Travelplan VICTORIA, ERV Portugal now insures be instrumental in managing currency risk. The Italian branch agreed key partnerships 17 of the most important tour operators, ERV has also won prestigious accounts in the financial year 2010. Firstly, the including Viagens Abreu, Soltrópico, operated by London Market Brokers.

27 Introducing our new subsidiaries

Our former holdings in Ukraine and Russia have been operating as wholly-owned subsidiaries since November 2010. Both companies are well positioned in their domestic markets and are ambitious to achieve their goals within ERV.

Interview with Myroslav Boichyn, standard of services for customers and Managing Director of ERV Ukraine travel agencies constitute our key competitive advantage. Mr Boichyn, please give us a brief introduction to your company. What insurance products do you offer? ERV Ukraine took up its business activities ERV Ukraine offers traditional insurance in Ukraine in 2007. Although experts products: comprehensive incoming and and future competitors declared that outgoing travel insurance, corporate travel this segment had already been carved up insurance, MasterCard insurance as well between the insurers and that any new as products designed specifically for the player would find it difficult to secure a Ukrainian travel market, such as insurance significant share in the market, ERV had cover of bank guarantees furnished for already won a partnership with leading tour operators and agencies, along with travel companies in its second year. liability insurance for IATA agents. Measured by the number of policies sold and premiums collected, the company Who are your largest customers? has swiftly advanced to take its place as We have established ourselves today as one of the market leaders. Today ERV a well-known brand in the Ukrainian travel is the only travel insurance specialist in market. In 2010, more than 350 travel Myroslav Boichyn, Managing Director of ERV Ukraine Ukraine and the main competitor for large agencies and tour operators were working local insurers and representatives of major together with ERV Ukraine. Our partners insurance brands, examples being Allianz, include leading market players such as cover of travellers against a tour AXA, Vienna Insurance Group, PZU and the tour operators Tez Tour, Turtess, operator‘s financial difficulties can be UNIQA. Pegas Touristik, TUI Ukraine and Carlson improved. Wagonlit Travel. Airlines Aerosvit and We have developed well over a period of Ukrainian International Airlines as well We are proud that our brand has already four years and steadily improved the as UniCredit Bank are also among our won the trust and acclaim of travellers company‘s financial performance year most important partners. and insurance and travel market pro- after year. In 2010, we insured more than fessionals. Since 2008, we have been 405,000 travellers, which is 67 % more What successes did your company the only company in the Ukraine to be than in 2009, and collected UAH 28.5 mil- celebrate in 2010? accredited by IATA to ensure its agents. lion, which represents an increase of 53 % In 2010, a year which was marked by Since 2009, we have been the insurance as against the previous year. A key role the spectacular bankruptcy of two larger partner of the Association of Travel in achieving this result was played by our tour operators in Ukraine, we responded Business Leaders of Ukraine (ALTU), con- professional team which currently consists swiftly to the urgent market need for a sisting of 14 leading local tour operators of 27 specialists. new, effective protective mechanism for and a member of the Ukrainian Insurance tour operators by adding an insolvency Federation (UFU), and the community Experience in the local market and the insurance for tour operators to our port- of insurance companies where we chair know-how of our founders and members folio. The first insolvency insurance con- the Travel Insurance Committee. As part of the ETIG have enabled us to become tract has been signed with Tez Tour, a of ALTU and UFU, our company became an innovative force in the domestic travel large Turkish tour operator, and has become an adviser of the Ukrainian parliament insurance market. We believe that innova- a benchmark for the entire travel market in amending legislation on insurance and tive products and solutions and the high and an example of how the insurance safety in the area of tourism.

28 What are your expectations of member- our market position as well as helping ship in ERV? us to improve our services to customers Ukraine We are glad to have become a full member and partners. Our plans for 2011 include ERV Ukraine opened its offices in of ERV and to represent it in Ukraine. We diversifying business further by expanding Ukraine in 2007. In recent years, the are also confident that being a part of ERV our sales channels, with greater emphasis company has advanced to become will open up even better opportunities for on online sales. the market leader in travel insurance. us to develop our business and strengthen

29 Introducing our new subsidiaries

Introducing ERV Russia company to expand in different regions Corporate travel and credit card insurance of the Russian Federation, thereby raising harbour market potential for ERV Russia, ERV Russia was founded in 2006. The awareness of the brand. particularly in combination with ERGO company currently has a workforce of 20 insurance products. The ongoing devel- people and is the only Russian insurance ERV Russia is a leader in cooperating with opment of promising approaches, based company specialised in travel insurance. travel agencies. Almost all travel agency on cooperation with ERGO in Russia, have The product portfolio includes medical chains, such as Hot Tours, Intourist Travel been planned for 2011. This step will insurance, medical evacuation and repa- Shop and MGP, are partners of ERV Russia. strengthen collaboration with partner triation, travel cancellation, travel accident, These chains allow customers to choose companies, making it even more reliable baggage, liability and tour operator in- which insurance they would like to add to as each insurance company will fulfil solvency insurance. the policy already included in the travel its obligations with customary profession- package. Travel insurance can be purchased alism. New technologies, innovative ERV Russia ranked among the top ten directly from around 30 travel agencies. insurance products and the European travel insurers in Russia in 2010. Key suc- quality standards of the ERV Group will cess factors are comprehensive insurance The online travel market, which has serve to enhance ERV Russia‘s reputation products which meet the needs of travel evolved in the last two years, is growing in the market and help promote it in its companies and travellers, a 24-hour by an annual 10 to 15 % and is one of aspiration of becoming a competitive and assistance service, special know-how the most important factors underpinning reliable partner to all companies operating in developing new insurance products, market growth in Russia. ERV Russia‘s in the travel sector. support and advice for partners regarding potential is huge thanks to its own online their business development processes, booking system set up for its partners. customised sales training for partners, the In the not too distant future there will Russia use of modern IT solutions in the online be an online shop for ERV Russia‘s travel ERV Russia took up its business display of insurance policies and reporting, insurance products. Online platforms activities in 2006. The company as well as very efficient claims processing have started to integrate an ERV Russia has assumed a leading role in the to a high standard. insurance module into their systems, with travel insurance segment of the airberlin being the first to launch an on- Russian market. ERV Russia signed a contract with Pegas line project in 2009. In 2010, ERV Russia Touristik, Russia‘s largest tour operator, began to work with Travelport (Galileo) as in 2009. This cooperation has enabled the one of the largest booking systems.

Accredited player in the travel insurance business

Over the course of four years in the provisions and amendments to guide- business, ERV Russia has won a lines associated with travel insurance reputation among tour operators and tour operator insolvency are dis- and travel agencies as a high-profile cussed when ERV Russia is present. travel insurer. The company meanwhile In addition, ERV Russia takes part in participates in Russian parliamentary MITT, Russia‘s largest travel trade fair sessions on the topic of insurance which attracts the largest travel compa- and the travel market. All statutory nies from all over the Russian Federation. Andrey Tyurin, Managing Director of ERV Russia

30 The representatives of ERV

ERV has representatives in China, Mexico, Thailand and Turkey. While the chinese market is a special challenge for the insurance business, ERV Turkey has been able to grow significantly with the support of ERGO Turkey.

China as an example of a potential market

New accounts acquired Life, two new insurance companies, as well as with a number of larger In 2010, Ctrip, an online tour operator, intermediaries in Shanghai and Peking, was successfully acquired as a custo- including Shanghai Airlines Travel mer for the cooperation of ERV with a and ETPASS.com. Chinese insurance company. Ctrip.com International Ltd. (CTRP), a company founded in 1999 with headquarters Social media and e-commerce in Shanghai, China, is represented through 16 branches throughout the The significance of social media in whole of China and, with employees China is difficult to assess. Facebook numbering more than 10,000, is as the world’s largest online commu- one of the most important players nity is currently blocked for Chinese in the booming Chinese e-commerce users. Nonetheless, an increasing business. In the period from 2009 to number of insurance companies are 2010, NASDAQ-listed Ctrip acquired concentrating on online business. participations in ezTravel in Taiwan Business with private accident insur- and Wing On Travel based in Hong ance for insurance companies and Diana Wang, Managing Director of ERV China Kong, extending its sales territory to sales partners such as airlines current- include Taiwan, Hong Kong and Macao. ly makes up the largest share in this segment. Interview with Diana Wang: As China’s leading travel service com- The market in China pany, Ctrip provides more than 40 mil- Alongside its successful sales, ERV lion registered members with extensive has continued to optimise the pro- What business model does ERV have services such as hotel reservations, cesses of its Chinese subsidiary to in China? airline ticket sales, package trips and be in an even better position to meet As ERV is not a licensed insurer in China corporate travel management. the requirements of special customer we work with a fronting model, which groups. Measures include setting means that several local insurance com- e-long.com, China’s second largest tour up its own customer services team, panies carry the risk for us. With the aid operator, was acquired by ERV China as shortening the claims processing of Munich Re, we then share the risk with another key partner. This partnership period from ten days to three days the fronting company. has enabled ERV to establish itself in and giving the individual employees the important future-oriented market greater scope for discretionary I should also mention that the business of online travel booking in China. In decision-making to promote a swift model in China has changed somewhat addition, cooperation agreements were and efficient claims handling in the over the past years. When we started signed with Happy Life and HSBC interest of customers. out in China five years ago, ERV supplied service and assistance to our customers, developed suitable products and provided underwriting.

31 The representatives of ERV

Since last year, ERV China has taken over Why is ERV not opting for a primary long-term policies. We have been actively more parts of the value chain. As a result, insurance solution in China? developing products customised for this ERV China now provides its partners with Acquiring a primary insurance license in segment in cooperation with our fronting sales support focused on large accounts in China is above all a long and arduous partners. the aviation industry and key e-commerce procedure, as the policy of the Chinese market players. To this end, ERV China has authorities is very restrictive. Another formed its own Key Account Team and is obstacle to founding your own company China increasingly focusing on direct marketing in China are restrictions on foreign owner- ERV received its representative office measures and participation in tourism ship. A foreign company may not own more license in China in 2008 and founded trade fairs. This approach will enable us to than 51% of an insurance company, which ERV China as a coordinating unit for its clearly and visibly position the ERV brand means that a foreign insurer wanting to Chinese cooperation partners. as a specialist travel insurance company in set up its own company will need to find the market. a joint-venture partner. Once a local company has been set up, the insurance What difficulties do you experience license is granted per province, and a in the market? foreign insurer is only granted one or two TURKEY – ERV Sigorta A fronting model is always a sensitive new licences a year for other provinces. option as every year we (ERV) need to As there are 34 provinces in China, a Fourfold increase in direct sales successfully agree on a renewal of the foreign insurer is looking at 15 years and The most important success story of the re-insurance agreement with the front- more until it is fully licensed in all provinces. year 2010 was the gratifying increase ing partner which requires us to prove Our fronting model gives us the opportu- in gross premiums booked as a result of our value as a ceding partner. The travel nity of responding much more swiftly and the cooperation between ERV and ERGO insurance business in China is very proof servicing the entire market through in Turkey. The sales activities of ERV fitable, and what we are experiencing our partner companies. Moreover, ERGO Sigorta, acting as an agency of ERGO, is the growing tendency of the fronting is about to go live with a joint venture in raised revenues almost fourfold in com- partner to wish to retain a larger share of China, and we anticipate that we will be parison with 2009. The expansion of the business for themselves. The afore- able to step up our cooperation with ERGO business and greater market penetration mentioned realignment of our activities in China in the coming years. has made ERGO, in collaboration with in China is now paving the way for ERV ERV, the fourth largest provider of travel present itself to our fronting partners as In your view, which products insurance in Turkey. an indispensable and competent partner and segments have a high market specialising in travel insurance, also in potential? Another pleasing development is ERV the future. We are currently also seeing We are concentrating on acquiring airline Turkey’s success in acquiring a number of rising claims ratios on travel insurance business and larger e-commerce com- leading tour operators. And finally ERV was products, which we can counteract with panies. Up until now, the Chinese online the exclusive tourism partner in the first our international assistance network and market has been underdeveloped but is running of the early booking campaign with Euro-Center’s cost containment experts. rapidly picking up speed. special product ideas. At the same time, there is market pressure on premiums and fierce competition by More Chinese students than ever are going Accounts newly acquired insurance companies to acquire the most abroad to study which naturally opens up ERV acquired Club Med as a new customer attractive intermediaries. a completely new market for medium to in 2010.

32 UND (International Transporters Associa- Social media are widely used. Indeed, tion of Turkey), an important customer of Turkey is known as the third largest Face- Turkey ERGO in Turkey, and ERV signed a contract book population in Europe. Young people The combined efforts of ERGO and our for customised insurance products. UND, are familiar with and use all social media sales office in Turkey, which is staffed whose members represent 90 % of inter- and Internet services, not only in their by three people, have enabled us to national forwarding companies in Turkey, homes but also in Internet cafés, schools, advance to take fourth place measured is ERV’s first major key account outside the in the workplace and elsewhere. Online by premium income within the space travel industry. business is of crucial significance for ERV of only a few years. Turkey in the context of its work with Strong growth in e-commerce online travel agencies and airlines. Online business is growing swiftly in Turkey. The number of Internet users The Airline SunExpress is set to become Mexico has already reached the 25 million mark. ERV’s first pure e-commerce customer. In terms of e-commerce, Turkey is a very In 2011, ERV has planned to step up ERV is in the process of establishing promising market. Many enterprises, for its activities in using social media and itself in the promising high-growth instance in the mobile phone, airline or strengthening the online presence of its market of Mexico through the local event tickets industries, already conduct own products. sales representative and Seguros Atlas their business via Internet. as our fronting partner.

Thailand

Together with its partner Thaivivat Insurance, ERV is gradually enlarging its product portfolio so that ERV can provide better service for the needs of expatriates and the local people in Thailand.

The team of ERV Sigorta in Istanbul.

33 The travel helper. Worldwide. In any situation.

34 35 Euro-Center – the worldwide assistance network

Euro-Center helps companies which need medical treatment for their clients wherever they are in the world and ensures that they do not pay more than is necessary for treatment.

Euro-Center Further assistance-companies

Copenhagen Prague Beijing Munich Istanbul New York Madrid Costa Cyprus Mallorca Bangkok del Sol

Sydney Rio de Janeiro Cape Town

In practical terms, this means that Euro- At the same time, Euro-Center provides its ”Compared with your previous insurance Center helps its customers to be success- customers’ clients an unparalleled customer claims provider, how satisfied are you ful internationally. By dealing with medical service. In September 2010, Euro-Center overall with Euro-Center’s service?” claims locally, in other words where the conducted a customer satisfaction survey 64 % of customers say much better or accident has occurred or where the ex- with the following findings: better. patriate is living, Euro-Center is able to radically reduce medical claim costs and ”Generally how satisfied are you with ”Would you recommended Euro-Center achieve exceptional cost savings for its Euro-Center?” to others?” customers. 86 % of the customers are very satisfied 54 % of customers say definitely and 34 % or satisfied with the service provided by probably. High satisfaction with Euro-Center Euro-Center. Based on 731 respondents, September 2010 In 2009, Euro-Center benchmarked its cost containment performance against a number of companies in the industry. The results showed that these companies Euro-Center Benchmark Bottom-line difference were charged between 10 % and 60 % price index index* in average claims cost more for the same services provided by the same medical facilities compared with Spain 1 1.23 € 148 the amount Euro-Center would have had Bulgaria 1 1.64 € 910 to have paid. The adjacent table illustrates the difference. Dominican 1 1.07 € 30 Republic

Egypt 1 1.50 € 419

*Test conducted in 2009 based on claims settled

36 360° service in Prague’s Assistance Center Before going abroad, it is likely that most travellers will think to take out a travel insurance. Nobody wants to run the risk of having to pay vast amounts for medical treatment or assistance. However, it is only a few who know about the assistance services which can be added to their insurance cover. Especially when travelling to less popular destinations and exotic countries, or without sufficient knowledge of the local language, assistance can become vital, indeed life saving.

The 360° Travel and Medical Assistance EUROALARM assistance services can help MESA, a Spanish assistance company, Service is aimed at providing the customer in procuring new travel documents, provided care for the Spanish with maximum care in the event of travel transferring money abroad, keeping travel national football team at the World or health problems or with other difficulties. delays to a minimum, arranging alternative Cup in South Africa Assistance Center coordinators can be accommodation and in solving all travel- contacted by telephone round the clock related problems whenever and wherever The insurance company of the Spanish and are available to help find solutions they arise. national team provided insurance cover in all kinds of exceptional situations. for the whole Spanish football delega- This saves our customers the potentially EUROALARM Assistance Prague tion at the World Cup in South Africa, distressing experience of having to in figures including insurance for the professional seek medical assistance in an unfamiliar • More than 15 years of expertise in players to cover accidents. The policy environment or even of begging for help. providing travel and medical assistance also included transport to any country As soon as an event has been reported, • Operated as wholly-owned subsidiary in Europe to find a doctor. MESA provi- the EUROALARM Team checks the policy of Evropská in Prague since 2002 ded assistance services to the Spanish terms and conditions and furnishes the • Member of an international network national team, members of the National medical facilities with a guarantee. with more than 82,000 providers Football Association and their guests The coordinators proceed step by step • Servicing more than 15 insurance com- for the World Cup in South Africa. The and concentrate their full attention on panies, mainly belonging to the ERV, contract signed with the football team the customer. To obtain the information it in their need for professional comprised insurance cover through to needs, its staff personally screen hospitals, travel and medical assistance worldwide the end of the World Cup. clinics and other medical facilities abroad • Settling more than 15,000 travel As the Spanish team won one game to ensure that they fulfil the quality and medical emergencies a year after the other, guests continued to standards that customers expect of it. • Workforce of around 40 employees arrive from Spain to attend the World In addition, the 360° Travel and Medical who speak more than 15 languages Cup final. Without a doubt winning Assistance Service not only covers medical the World Cup had a positive effect problems but is also at hand to help in on MESA. other difficult situations.

37 Outlook

Buoyed by the positive economic outlook, the European travel insurance market also recovered from the financial crisis in 2010. ERV is expecting steady growth in 2011. The company anticipates that the economic upswing currently experienced in 2011 will also be reflected in an increase in travel bookings and therefore also in travel insurance. Particularly as the observation that times of crisis tend to be followed by times of travel has held true so far.

The key to future growth will be innovative to be managed is far greater. In many areas products, booking technologies and sales this requires flexibility and the willingness channels. Bookings will shift away more to think in new ways in order to secure swiftly from the classical sales channels success in the long term. to e-commerce, and the travel insurance The aim is therefore also to raise the market will continue its process of sale of annual insurances swiftly and to internationalisation through cross-border significantly increase the proportion of business. After years when last-minute annual insurance in the company’s product booking was all the rage, there appears portfolio. By 2018 at the latest, ERV’s to be a trend emerging towards longer- target is to have achieved a share of 40 % term booking. Whether this will result in across all sales channels. an increase to severely curtailed airline capacity remains to be seen. With its sights set on the goal associated with the Joint Travel Initiative project of Throughout the decades, ERV has estab- focusing on core markets and integrating lished itself as one of the leading travel its ERGO and MunichRe affiliated com- insurance companies in Europe. Business panies, ERV will be concertedly targeting has become increasingly international and, regions of high growth for travel insurance. above all, characterised by a swifter pace In future, all markets will be assessed more in recent years. External influences are on strongly in terms of their profitability and the rise and the complexity which needs growth potential.

38 39 The employees of ERV.

40 Always there at the right moment. Anywhere in the world.

Headquarter: Germany, Munich

Branches: Italy, Milan UK, London (incl. Ireland, Dublin) Poland, Gdansk Portugal, Lisbon

Subsidiaries: Denmark, Copenhagen France, Paris Russia, Moscow Sweden, Stockholm Spain, Madrid Czech Republic, Prague Ukraine, Kiev

Shareholdings: Austria, Vienna Slovakia (Austrian Branch) Hungary, Budapest

Sales Ofﬁ ces: China, Bejing Mexico, Mexico-City Thailand, Bangkok Turkey, Istanbul

Cooperations: Australia, Sydney Baltics, Riga New Zealand, Auckland USA, Cincinnati

Planned Cooperations: India, Mumbai South Korea, Seoul Japan, Tokyo

Development of key performance data 2010 2009 2008

Gross written premiums T€ 484,041.57* 440,703.77 400,586.41

Operating result T€ 5,709.92 7,514.36 -603.15

Administrative cost ratio gross % 5.5 10.4 11.3

claims ratio net % 57.5 55.9 56.2

* Segment Travel & Assistance according to IFRS Germany Europäische Reiseversicherung AG ERV – Rosenheimer Str. 116 a growing international company 81669 Munich, Germany phone +49 (0) 89 4166-00 [email protected] www.erv.de

Branches: Subsidiaries: Representatives / Sales Ofﬁ ces:

(0211) have been operating as wholly-owned subsidiaries of ERV since November 2010. 13.01.064