What are your priorities for the 2023-2025 strategic plan?
We are targeting three priority themes. As part of the insurance activities in which AG2R La Mondiale is present – in addition to supplementary pensions – it is necessary to ensure control of financial balances, in particular as regards pensions. The second priority is to shift gears in terms of IT and digital systems to ensure our operational excellence. Finally, customer satisfaction must be at the center of all our thoughts and actions.
What do you intend to do to adjust the pension?
Significant work needs to be done on the economic performance of AG2R Prévoyance. On 9 June we will present a recovery plan that aims to earn 130 million euros per year by 2025. Pension institutions must stabilize their financial costs to ensure the sustainability of their activities. We will work on pricing first. The end of the branch contract designation clauses resulted in new business costs for our teams. We need to take this into account and review the uploads. We will also try to improve technical results by agreeing to terminate certain contracts. In the insurance sector perhaps more than anywhere else, growth must be profitable, given solvency 2, which requires the inclusion of future profit projections in equity calculations. We must be careful not to degrade our solvency margin. We also hope to improve multi-equipment. This leverage has not been exploited sufficiently, in particular through digital technology, in compliance, of course, with the GDPR (General Data Protection Regulation, ed).
How can digital develop in the group?
The group has fallen behind in digital, no doubt because it was built through successive mergers. André Renaudin (his predecessor, ed) has done significant work to integrate entities and teams. Now we need to do the same for information systems. Customer knowledge remains very fragmented today, information systems present a risk of obsolescence, partnerships and synergies take a long time to implement. We need to change gears and create an open and shared organization that benefits policyholders but also employees. It is in this context that Pascal Martinez joined the steering committee of the group, where he is responsible for information systems and digital. He will lead the transformation for several years.
You announced a new direction in early May. What is the goal?
The new management organization chart aims to encourage teamwork between companies and functions and therefore to reduce silos. In addition to Pascal Martinez, François Rubichon also joined the group as general secretary. We are also setting up a young executive committee called “Comme1Comex”, made up of 8 women and 8 men under 40. They will work on certain topics and will have a duty to be stimulators, especially on topics related to new technologies.
Do you still have ambitions for a rapprochement with another player in property damage?
Despite the abandonment of the merger with Matmut, we have not given up on opening up to non-life insurance. This would be beneficial in terms of multi-equipment and solvency gains through business diversification. The idea of starting from scratch in P&C is discarded. We are putting three options on the table: either a merger with a player comparable to Damage and Damage specialist Matmut, or a partnership agreement to distribute damage products from another player, or the acquisition of a insurtech. We will wait for the right opportunity before taking action.
Can a fintech be integrated into a large group like yours?
The question arises for the a insurtech as for a traditional insurer. It all depends on cultural compatibility and leaders. We have also just concluded our work on a reference system for joining the group of all our entities and any new entrants such as mutual Intériale, with which discussions are underway in view of a merger. The group has grown to such an extent that we need to clarify a set of rules to all parties business planstrategy, human resources, finance, management of Cash and asset, risk, information, marketing and communications systems.
What are your points of attention on the evolution of the markets and on the next major reforms?
The economic context is strongly characterized by uncertainty and geopolitics. We now need to study different economic scenarios in our internal risk assessment process (Orsa). The recovery in interest rates looks good news overall, even if we prefer to rely on our transformation plan.
We will also be attentive to the next pension reform. The increase in the statutory retirement age had the side effect of creating an additional and unexpected burden on the pension institutions responsible for paying multiple disability pensions. This question seems to have been better considered by the government. Finally, a possible addiction reform will concern us. Beyond the reflection on its financing, we will take care to raise the issue of training and human resources in this sector.
Interview by Alexandre Garabedian and Thibaud Vadjoux