What are your priorities for the strategic plan 2023-2025?
We target three priority themes. In the field of insurance activities where AG2R La Mondiale is located – apart from supplementary pensions – we must ensure the control of financial balances, in particular with regard to savings insurance. The second priority is changing gear in terms of information and digital systems to ensure our operational excellence. Finally, customer satisfaction should be at the center of all our thoughts and all our actions.
What do you intend to do to correct the pension?
Great work needs to be done on the economic performance of AG2R Prévoyance. On June 9, we will present a recovery plan aimed at earning 130 million euros annually by 2025. Savings institutions must stabilize their financial costs in order to ensure the sustainability of their activities. We’ll work out first on pricing. The expiration of the assignment clauses under the branch agreement has resulted in new commercial costs for our teams. We have to keep that in mind and review the downloads. We will also seek to improve technical results by agreeing to terminate certain contracts. Perhaps more in insurance than elsewhere, growth should be profitable, given solvency 2, which requires that projections of future earnings be included in equity calculations. We must be careful not to underestimate our solvency margin. We also hope to improve the multi-equipment. This leverage has not been sufficiently exploited, particularly via digital means, in compliance, of course, with the GDPR (GDPR, editor).
How can the digital development in the group?
The group has fallen behind in the digital realm, no doubt because it was built through successive mergers. André Renaudin (his predecessor, editor’s note) did important work in integrating entities and teams. We must now do the same for information systems. Customer knowledge today remains highly fragmented, information systems present a risk of obsolescence, and partnerships and synergies take a long time to propagate. We need to change equipment and create an open and shared organization that will benefit policyholders as well as employees. In this context, Pascal Martinez joined the Group Management Committee, where he was responsible for Information and Digital Systems. He will lead the transformation over several years.
I announced a new trend at the beginning of May. what is the point?
The new management organizational chart aims to encourage teamwork between firms and jobs and thus reduce silos. In addition to Pascal Martinez, François Robichon also joined the group as General Secretary. We are also creating a young executive committee called “Comme1Comex”, made up of 8 women and 8 men under the age of 40. They will work on certain topics and it will be a duty to be a catalyst, especially on topics related to new technologies.
Do you still have ambitions of rapprochement with another player in property damage?
We have not given up on being open to property and casualty insurance though we have given up on the merger with Matmot. This will be beneficial in terms of multiple equipment and solvency gains through business diversification. The idea of starting from scratch in P&C is ignored. We put three options on the table: either a merger with a player similar to Matmut, a P&C specialist, a partnership agreement to distribute damaged products from another player, or the acquisition of insurtech. We will wait for the appropriate opportunity before acting.
Can FinTech be integrated into a large group like yours?
The question arises for insurtech For a traditional insurance company. It all depends on cultural compatibility and leaders. We have just completed our work on a reference system to join the group for all our entities and any new participants such as the Mutual Intériale, with whom we are in discussions with a view to integration. The group has grown to such a size that we need all parties to clarify a set of rules for it Action Planstrategy, human resources, finance, management Cash assets, risks, information, marketing and communications systems.
What are your points of interest regarding the evolution of the markets and the upcoming major reforms?
The economic environment is strongly characterized by uncertainty and geopolitics. We must now consider several economic scenarios in our Internal Risk Assessment (ORSA). The recovery in interest rates promises to be good news overall, even if we prefer to rely on our own turnaround plan.
We will also pay attention to the upcoming reform of the pension system. Increasing the legal retirement age has had the side effect of creating an additional, unexpected burden for savings institutions responsible for paying more disability pensions. The government seems to have taken this question better into account. Finally, a possible dependency fix will worry us. Besides considering its financing, we will make sure to raise the topic of training and human resources in this sector.
Interviewed by Alexander Garabedian and Tibod Fadjo