Based on its success in Austria, the Group has been expanding its market position in Central and Eastern Europe since 1990. The experience and solid market knowledge gained by the Vienna Insurance Group over the past 20 years is applied continuously to the Group’s insurance business, which is broadly diversified across countries, distribution channels and products. 

Focus on the CEE region
The Vienna Insurance Group is clearly focusing on the CEE region, which offers a multitude of growth opportunities due to the strong demand for insurance products. The strengths of the Vienna Insurance Group lie in its quick and flexible adjustment to local market conditions as well as in its active development of attractive products to satisfy customer needs combined with a customer-oriented sales approach. 

VIG’s management principles
In implementing these objectives, the Vienna Insurance Group relies on the following four strategy principles, which have proven themselves in the management of the Group:

 

The graphic illustrates the principles essential for achieving VIG's goals. The centre point is the insurance business as the core business of the group. There is one superior principle which is the focus on the CEE region where is strong demand for insurance products and a variety of opportunities for growth. After this the four principles the VIG relies on are mentioned. First principle: think globally - act locally. Local management and know-how transfer within the Group (best practice) are important success factors. Second principle: diversification. There is a broad diversification across countries, distribution channels and products and risk spreading across investments. Third principle: multi-brand policy. Locally established brands are maintained as a tool for creating customer and employee loyalty. Fourth principle: multi-channel distribution. Multiple channels of distribution are combined and a strongly customer-oriented distribution is emphasized.
  1. Think globally – act locally
  2. Multi-brand policy
  3. Multi-channel distribution
  4. Diversification
  1. Think globally – act locally

    The Vienna Insurance Group uniquely combines an enormous experience of Group management with the know-how of local management. It is thus ensured that the Group’s standards are implemented into fair and customer needs-oriented insurance solutions on every market.

    Direct communication and mutual exchange of knowledge distinguish the cooperation within the Group. The top management level, but also executives and employees of Group companies regularly discuss best-practice examples, thereby making successful products and creative solution approaches available to one other. This lively transfer of know-how makes it possible for the Vienna Insurance Group to repeatedly score points in the market with innovative insurance solutions adapted to local conditions and customer needs.

     

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  2. Multi-brand policy

    The multi-brand policy consciously pursued by the Vienna Insurance Group significantly differentiates it from other market participants in the region. Each Group company uses its local brand as its first name, followed by Vienna Insurance Group as its family name. 

    The multi-brand policy allows established, well-known brands that already enjoy good customer recognition to be retained and helps to maintain the loyalty and commitment of local employees and managers. Established distribution relationships are also easier to continue using an existing brand. On the whole, the business of insurance companies can be developed with great success in this manner.

     

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  3. Multi-channel distribution

    It is the strong sales approach and the multitude of distribution channels that make it possible to fully capitalise on the business potential of a market. The optimal customer approach is ensured through multiple distribution channels. The Group uses salaried field staff to create a solid foundation for its distribution structure. In addition, depending on availability and efficiency, partnerships are formed with exclusive and non-exclusive agents, brokers, multi-level and direct marketing agencies and banks.

    The Vienna Insurance Group also gives great importance to distribution when making acquisitions. High-performance, sustained distribution capacity is always the main criterion used when a new company is acquired.

     

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  4. Diversification

    The Group stands out for its broad diversification across countries, distribution channels and products, thereby minimising risks. Local management has the best knowledge of the specific conditions and customer needs in their own markets and custom-tailors their own optimal product range by quickly and flexibly adapting the extensive range of products offered by the Vienna Insurance Group to match current demand in their country. 

    Diversification is, however, also important for investments and reinsurance, and the Group ensures an appropriate level of quality and risk spreading in these key areas in order to guarantee the maximum possible safety.

     

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24.01.2012 08:10

Preliminary development of Vienna Insurance Group in 2011*

Excellent corporate data despite a generally difficult economic situationPremiums written: growing...

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