How we create value

We believe that the key to success in the Danish insurance market is to attract and retain satisfied customers with few claims. We ensure this by e.g. combining strong distribution power with differentiated and risk-based pricing as well as an efficient organisation.

We believe that the key to success in the Danish insurance market is to attract and retain satisfied customers with few claims. We ensure this by e.g. combining strong distribution power with differentiated and risk-based pricing as well as an efficient organisation.

Our work on value creation is intended to

  • Increase the cash flow the company can distribute to its shareholders
  • Reduce the discount rate used by the market to discount the future cash flow to net present value




Dividend

From 1998 to 2017, the distribution in Topdanmark was in the shape of share buy-back. At the annual general meeting in 2017, dividend distribution was resolved. 
 




Strong distribution

When it comes to distribution, it is our strategy to combine our own sales channels (certified insurance sales representatives, sales centres, telephone sales, online sales etc.) with sales and referrals from a number of partners. This can be financial institutions, car dealers, and insurance brokers. At present, we have distribution agreements with, among others,  Sydbank, Nordea and COOP.




Prices based on risk

We work with differentiated pricing based on the customers’ risk. Therefore, Topdanmark is an attractive insurance company for customers with few claims.

Whereas customers with less favourable claims trends are incentivised to change to other insurance companies with a less risk-dependent pricing structure.

We continue to work with risk-based correct prices through digital solutions, publicly available data and advanced pricing models.

We have no current plans to make general price increases. Instead we are working on various initiatives towards non-profitable customers. For example, loss prevention, lower sums insured, increased retention of own risk and selective price increases).




Efficient organisation

Going forward, we will invest even further in improving and automating our processes, thus we to an even greater extent can offer our customer an easy, simple and quick service. Furthermore, it will help us maintain competitive prices.

The improved efficiency will i.a. offer the customers improved opportunities for self-service, claims handling and online purchase, and it will optimise a number of administrative processes and create a culture geared for change.




Customer satisfaction is everything

Topdanmark lives off helping people and companies. Our livelihood is to inform, service and advise our customers – both before, during and after a claim. We are only doing our job well, if the customers are satisfied as the customer experience is one of the most important elements when creating long-term, solid and profitable customer relations.

Therefore, in contact situations, we ask the customers about their customer experience with us. This way, we receive feedback from more than 180,000 customers per year, and we use this feedback to improve our processes, communication, products and services.

In addition to internal monitoring, Topdanmark also participates in the annual EPSI survey across most of the major insurance companies. For both the private and SME segments, Topdanmark is on par with the other large companies. In KPMG’s annual Customer Experience Excellence survey, Topdanmark has been the best ranging insurance company in Denmark for two consecutive years.




Activities associated with customer satisfaction

  • For all communication channels – telephone calls, digital self-service, meetings, after claims and when using collaboration partners – we collect the customers’ feedback on the service level, thus we can identify how to improve.
  • If a customer's answer indicates that Topdanmark's services were not satisfactory, the customer will be contacted to remedy the experience. Positive feedback is sent directly to the employees as a pat on the shoulder.
  • We monitor and report on NPS (Net Promotor Score) and CES (Customer Effort Score).
  • We have created a service concept that ensures high quality and continuous improvement of the communication to our customers.
  • We continuously analyse the connection between the customer experience and their satisfaction and loyalty in order to understand how we, from a customer perspective, can create and maintain the best possible good and sustainable customer relation.



Contact

INVESTORS
Steffen Heegaard
Head of IR and Group Communications
IR secretariat