The economic consequences of the corona crisis cannot yet be estimated in detail. What is already clear, however, is that some sectors will be hit very hard – for example, the automotive industry and all its suppliers. It’s a bit more difficult to make forecasts for insurance companies. First and foremost also for HUK coburg, whose core business has always been motor vehicle insurance.
At a press conference on tuesday, which was held as an audio-web conference due to the current situation, the question arose as to whether HUK does not offer its customers "corona discounts" could preserve. Because if people drive significantly less because of the exit restrictions, there will be significantly fewer accidents – which is why the HUK will have to pay for significantly fewer damages.
Board spokesman klaus-jurgen heitmann responded by referring to the special legal form of HUK coburg, which is a mutual insurance association had. This means that the company ultimately belongs to the insured parties. "And we won’t forget it", heitmann affirmed. When the crisis is over, the situation will be viewed "through the eyes of our mutual association", also with a view to possible compensation for policyholders view.
Organizational "tour de force
Speaking of mutuality, heitmann expressed his thanks to all employees, with whom a real "tour de force" had been achieved in recent weeks succeeded. More than 9600 employees now work from home in a home office. "I am proud that we have managed this organizationally and technically!" Even customer service by telephone is now possible in the home office.
"We get a lot of positive feedback from our employees," he says, reported sarah rossler, who is responsible for human resources on the HUK board of management. Sarah rossler therefore also assumes that the consequences of the corona crisis will have a lasting impact on the way we work. Although about a quarter of employees have already had the opportunity to work remotely. "In the future, however, this will be considerably more! Work will be even more flexible."
Klaus-jurgen heitmann reported on the work of the "crisis team at the HUK. Since the middle of february, this had initiated protective measures. Among other things, the "presence in rough buroraumen" is to be increased massive downsizing.
Since 23. In march, more than 90 percent of all employees work from a home office. As early as the 17. In march, the HUK had closed all offices nationwide; advice and service are to be maintained by telephone.
HUK is also thinking of its now 1,600 partner garages, as heitmann emphasized. Should they run into liquidity problems, they could receive advance payments from HUK. The partner workshops are primarily bodywork and paint stores that are commissioned by HUK to carry out repairs in the event of damage. The associated insurance tariff "kasko select almost five million HUK customers have already signed up.
Stable revenue base
In view of the corona crisis, heitmann did not venture a concrete outlook on the business development of HUK coburg. However, there has been a "noticeable decline" in motor insurance business in the number of new contracts is to be expected, simply because fewer new cars are being registered. On the other hand, it is hoped that there will be fewer cancellations, which will result in a "fairly stable revenue base" as heitmann said. In this respect, HUK is in a better situation than the manufacturing industry, for example. Another mitigating factor was that HUK generally only insures the cars of private customers and not company vehicles.
Nevertheless, klaus-jurgen heitmann was certain: "i will probably not be able to present record figures next year." Record figures, as there were again in a row for 2019. "The development was very pleasing", heitmann summed it up. In 2019, gross premiums written increased by 2.4 percent to 7.8 billion euro. Customer benefits increased by 5.2 percent to 7.3 billion euros. Both the result from ordinary business activities (640 million euros) and the net profit for the year after taxes of around 453 million euros were higher than in the previous year.
You can read many more figures on HUK coburg’s fiscal year 2019 here
The 2019 business year in figures
Motor insurance HUK coburg can continue to call itself "germany’s largest car insurer" describe. After breaking the 12 million mark for insured vehicles for the first time in 2018, this figure rose again in 2019 to an above-average level. A 3.9 percent increase in the number of vehicles insured means that HUK now insures 12.4 million vehicles. Last year, the HUK group paid 3.6 billion euros for motor vehicle claims by its customers and claimants. The most serious damage was caused by the severe hailstorm at whitsun in southern germany. Telematics 215,000 HUK customers have now signed up for the "telematics plus" tariff with their vehicle insurance company decided. A small box is installed in the windshield that records the driver’s behavior. Who "anticipates" ride, as the official lingo goes, can save up to 30 percent on his insurance premium. "We are already seeing that drivers who use the product are causing less damage.", explains board spokesman klaus-jurgen heitmann. Interesting: last year, HUK recorded 66 million trips via telematics; the average distance traveled was 13 kilometers, and the average speed was 51 km/h.
HUK’s 2019 growth in liability, accident and property insurance is stronger than ever before. An increase of 6.8 percent now means 12.8 million contracts in this sector.
Legal expenses insurance legal expenses insurance also set a new record: the number of policies in force was increased by 140,000 (2.5 percent) to more than two million.
Life insurance HUK was particularly successful with its "premium pension" product winning new customers. Overall, however, the number of contracts in this fiercely contested segment fell to 1.5 million (down 2 percent). Health insurance although fewer and fewer people are taking out private health insurance, HUK was still able to grow somewhat more strongly than other providers in this area.
Statistics HUK coburg currently has 10537 employees, 5629 of whom work at the coburg site alone.