The management board believes that the business plan is ambitious considering the impacts of the Covid-19 pandemic. Moreover, it has considered all key aspects required to support the Group's sustainable long-term development, risk management and appropriate profit generation.
According to the annul plan for 2021, Sava Insurance Group will focus on its key development domains in 2021: digital transformation and placing the customer at the centre, IT transformation, acquisitions-based growth
On the digital transformation and placing the customer at the centre, the Group intends to:
- continue the path that it has started in 2020 in order to provide online solutions to support insurance operations, partly accelerated by the Covid-19 situation.
- facilitate customer communication, exploring omni-channel marketing and replacing paper-based communication with electronic means
- Introduce new digital avenues: offering a wider array of online sales option informative solutions, service subscriptions and information points providing advice on selecting optimal coverage for individual customer segments
- starting the renovation of the IT system supporting reinsurance, non-life and life insurance operations in Slovenia and life operations in Serbia
- completing the core business IT solution for the Croatian branch office of Zavarovalnica Sava
- technically consolidating data warehouses supporting insurance operations
- continuing technological and process upgrades in cyber security, with an emphasis on end-user training
- implementing an IT service management solution
In Slovenia, the Group is planning 2% growth in gross non-life insurance premiums, taking into account the expected slowdown in car sales and longer economic recovery from Covid-19. Gross life insurance premiums written in Slovenia are expected to grow by 23%, reflecting the full-year inclusion of the life insurer Vita in the Group.
The Group's non-life insurers outside Slovenia are planning their gross premiums written to grow by 8%. This increase mostly relates to the motor insurance business, in which companies wrote less in premiums in 2020 than planned due to Covid-19 impacts, whereas less of such adverse impact on premium volume is expected in 2021.
The Group's life insurers outside Slovenia are also planning their gross premiums written to grow by 8%. In 2021, product and service development will mainly focus on preparing adaptable risk products tailored to selected customer groups and specific distribution channels.
The reinsurance segment expects gross premiums written to grow by 1% in 2021. The lower growth rate reflects more selective reinsurance underwriting focused on profitability, with steps taken towards de-risking the portfolio and further diversifying it in terms of regions and partners.
This plan is based on autumn forecasts for GDP growth in the countries were the Group is present and on expected relatively stable and less volatile financial markets than those experienced in 2020. It is also premised on the assumption that there will be no new lockdowns in 2021 or restrictions on movement similar to those imposed in these countries in 2020.