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‘Increase in market share’
After drastic reorganisations in the past
two years, 2001 was satisfactory for
Delta Lloyd Care. The national health
organisation which operates under the
traditional name of nuts, realised a
profit of some millions of euros. A
campaign was held in the autumn to
raise the number of insureds. The health
schemes of ohra and nuts have meanwhile
been completely combined.
Medical expenses activities were also
profitable. A number of unprofitable
group contracts was cancelled which
resulted in reduced revenue figures, but
the quality of the portfolio improved
sharply. The implementation of the
Business Process Redesign (bpr) was
completed; it has affected the entire
organisation. The first foundations of
the new office in The Hague were laid
down in the month of May. Delta Lloyd
Care is back in business again with a
solid basis for the years to come.
Medical Expenses The organisation for
the medical expenses insurance under
the name of Delta Lloyd Care has meanwhile
stabilised, thanks to the introduction
of many new functions and a
radical change following the bpr.
Profitability doubled in 2001. Some
major unprofitable group contracts were
cancelled, but the remaining contracts
were given active attention to a stabilised
price, and services were added within
the context of Employee Benefits. Delta
Lloyd Care has taken a position at the
top of the market by providing a great
number of supplementary services. The
general slogan was prevention is better
than cure. It is important to all parties
involved to be healthy, to become healthy
and to remain so. The programmes
provided includes fitness programmes,
onsite advisory services and waiting list
mediation. An active absence management
is pursued, such as finding the
right medical attendants and treatment
methods, but also medical treatment
abroad. By pursuing this policy, Delta
Lloyd Care wants to be distinguished as a
top quality care insurer with remarkable
provisions to enhance customer satisfaction.
The balance between profit and
market share will be optimised next year.
A special product was introduced at the
end of last year for insureds whose
medical consumption will probably be
low for a certain period of time. This
relates mainly to young people. Intermediaries
do not only receive market
compliant commission rates, but a bonus
system has been developed to stimulate
the sale of these products.
For the first time in the history of
financial services, a game was introduced
for the intermediaries: the Adrealinic
Game. The knowledge of intermediaries
who participate (voluntarily) is tested
and they can earn a reward, in addition
to payment for much new business.
Health scheme Developments in national
health business were satisfactory. The fall
in the number of policyholders stopped
and changed into a slight increase.
The health scheme of ohra was added to
nuts, this concerned approximately
70,000 policyholders. This involved much
extra work. The population of the health
scheme insureds of ohra and nuts differ
in respect of age, payment behaviour
and geographical spread over the
Netherlands. Extra staff were hired for
this operation which created a successful
integration.
In the autumn an active campaign was
organised called Intens. Health scheme
insureds are offered three packages
consisting of the legally required basis
package plus supplementary insurances.
The most simple and cheapest package is
called Intens Bronze, followed by Intens
Silver and the most comprehensive
package is Intens Gold. Policyholders are
given an id Card in the corresponding
colour. The response was encouraging.
These products are very competitive in
the market and it gave Nuts the position
of the most economical health funds in
the Netherlands. The campaign at the
same time anticipated the new basis
system. Maximum profits from this
source are not pursued as the national
health scheme performs mainly a social
function. However, it is important to
Delta Lloyd as a whole to have the widest
possible client base, also in this sector. It
creates opportunities for selling such
insurance products as supplementary
medical expenses.
Another activity of Delta Lloyd Care is
carrying out tasks in the field of awbz,
the Exceptional Medical Expenses Act.
A separate office was set up in this
respect: De Haaglanden.
Plans for 2002 The market share of Delta
Lloyd Care was approximately 6.5% at the
end of the year under review. The aim is
a gradual increase of this share to
approximately 8%. Sales campaigns
started in this respect at the end of 2001.
Together with ohra a cautious policy is
pursued in respect of automation, as the
systems will have to fit the new basis
system in due time. We are continuously
consulting with ohra about this. For an
even better cost control we are paying
attention to the joint purchase of care
services, where power of scale counts.
New methods will be sought to shorten
waiting lists for medical operations. This
may be achieved by sending patients
abroad, if capacity exists there. In this
respect, we offer customers to undergo
operations in Alicante, Spain, the cover
including a full compensation for the
operation itself, the trip and the stay in
Spain, also for the life partner.
The overall policy aims at cost control,
stable results and a gradually rising
market share.
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