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‘Increase in market share through active
marketing campaigns’
ohra care 2001 was a satisfactory year
for ohra Care. Improved profitability in
1998, 1999 and 2000 continued strongly
in the year under review. The desired
profitability level was achieved in a
difficult market, characterised by very
intense government involvement and
such problems as striking nurses, long
waiting lists, small hospital budgets and
rising medical expenses. Revenue reduced
slightly because of the cancellation of
some unprofitable contracts in the
medical expenses portfolio. This will
help to improve the profitability of the
portfolio.
ohra as a medical expenses insurer
The health funds of ohra and Nuts have
meanwhile been completely integrated.
nuts is the health fund of ohra and
Delta Lloyd together. ohra has a position
of a domestic direct writer with a large
share in the market of medical expenses.
The internal organisation has been
adjusted in accordance with the
programme Go@ll, which started in
2000. ohra has been subdivided into
business units with their own marketing
departments. The automation was
renewed, resulting in faster, better and
friendlier service.
Focus for ohra Care was mainly on an
increase of revenue in order to achieve
power of scale and, hence, cost
reductions. An advertising campaign
was launched for the personal lines
market, with a gift for every new policy.
This remarkable campaign did not only
receive much attention in the insurance
world and in the press, but it was very
successful with the public as well. Many
thousands of new customers applied.
One striking element was that more
insureds opt for a higher deductible
than in previous years.
The volume of the group portfolio
remained the same. ohra has provided
that it will not purchase unprofitable
portfolios only to increase revenue,
something which is common practice
amongst other parties in the Netherlands.
In group business, the focus was on small
and medium sized businesses, also when
it concerns relatively small contracts. This
makes it possible to sell other insurance
products such as income, absence and
pension to existing customers.
Plans for 2002 Several developments are
planned for 2002. Increase in revenue is
important and will be achieved by a
combination of rate increases and new
insurances. Competitive rates are
required for an inflow of new policies.
Another item is an ongoing stress at cost
reduction, partly by more intense efforts
to reduce the total claims experience.
Care procurement will be combined with
Nuts, which leads to economies of scale.
Other initiatives will be developed to
assist insureds in the Dutch labyrinth of
medical provisions.
E-insurance will be developed in 2002.
Information, or a quotation may be
applied for via the Internet, and it will
be possible to effect the policy direct.
Electronic claims handling, which has
already been the practice for pharmacists,
will be promoted strongly in 2002.
All these initiatives fit in ohra’s vision
that power of scale, standardisation and
electronification may result in significant
and necessary cost reductions. But ohra
would rather see that sickness is avoided,
by means of new services and guidance
(prevention services) or that sick persons
get better fast and are reintegrated.
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ohra insurance