Executive summary DKV 2019

LESS TALK

MORE TRANSPARENCY 2019 INTEGRATED CORPORATE REPORT EXECUTIVE SUMMARY

HEALTH ACTIVISTS

EXECUTIVE SUMMARY

2019 Integrated corporate report

WHO WE ARE Purpose

DKV is a personal insurance company specialising in HEALTH, committed to people and orientated to sustainable development

WE STRIVE FOR A HEALTHIER WORLD Vision

We want to be benchmark for those who want to care for their health and for that of loved ones throughout their lives

Mission It is part of ERGO, one of the largest insurance groups in EUROPE, 100 % owned by Munich Re AG, the global LEADER in reinsurance

DKV is characterised by the innovation in its products and by the development of a CUSTOMERORIENTED business policy that guarantees solidity, security and the excellent quality of its services

We contribute to improving the health and wellbeing of people through excellent insurance and solutions in a responsible way

Values

COURAGE

AUTHENTICITY

HONESTY

SIMPLICITY

WARMTH

Javier Vega de Seoane

Josep Santacreu

"We have been working on our Quiero cuidarme Más telemedicine platform for over five years. In 2019 it took a qualitative leap forwards when we included functions such as a healthy habits coach, a digital midwife and video consultations with specialists. At a time of crisis like the one we are living due to COVID-19, telemedicine has become crucial in relieving visits due to emergencies.

And it has helped DKV by opening the platform to the whole of society"

"At DKV we have proven that it is possible to develop a profitable and sustainable company with a perspective more committed to the planet and society as a whole. We want to go one step further in our commitment and adopt a clearer and more direct public position, an activist role that encourages organisations to join the change that the planet and society needs"

Chairman of DKV Seguros

CEO

Founded in 1999 by DKV Seguros to facilitate social and labour integration for people with disabilities. It currently employs almost 500 people in seven centres across Spain, and drives international cooperation programmes in other countries

f ewer b arr i ers , f urther i ntegrat i on 2

DKV

DKV GROUP, EXPERTS IN HEALTH € 818,237M

volume of premiums acquired

1.8M

insured

4 %

3 %

VOLUME OF PREMIUMS BY BRANCH

€ 702.4M HEALTHCARE

€ 59.7M FUNERALS

INCOME PROTECTION

€ 30.8M

€ 12.0M HOME

€ 9.5M LIFE

ACCIDENTS

85.8 % of the business

7.3 % of the business

3.8 % of the business

1.5 % of the business

1.1 % of the business

0.5 % of the business

€ 47.5M

€ 35.1M

7 %

Pre-tax profit

5 %

Net profit

€ 279.5M

BUSINESS GROWTH

9 %

+ 4 % total

Net equity

premiums

5

20

New products or developments to existing products

754

Employees

24

Sales branches

Healthcare centres

+ 8 % individual health insurance

6.7 %

Improvements in existing products

22

€ 3.9M

Share of the health market (healthcare income and reimbursement)

49,013

Healthcare professionals

42

Branches

4,169

Agents and brokers 3

EXECUTIVE SUMMARY

2019 Integrated corporate report

2020 COMMITMENTS FOR A HEALTHIER WORLD

We guarantee that we will not cancel any individual health policy that has been held for more than three years.

We will remove at least 30 % of authorisations for medical tests.

S

G LON LIFE ICY POL

HEA L HAB THY ITS

IN

NO VA SIM TI VE PL IC ITY

ON

L

CHILD HO OBES OD ITY GU AR PR ANT IC EE E D

RE

SPO

We guarantee all customers with individual contracts that we will not apply individualised price increases in their policies no matter how much they use them, although they may experience other increases related to increased coverage, new services or the CPI of the sector.

4

OP

ET N A PL CLEAR LANGUAGE

NSIB

LE MANAGEMEN

BEING

ECT RESP e end to th right

We offer services with a social component, such as Ecofuneral, with which customers can plan their funeral in 100 cities, to facilitate decision-making for loved ones.

RESPONSI

BLE

COMMITMENTS

PE

ELLDW AN TH AL HE N S E’ TIO EN EV PR

L SO

I UT

We will drive healthy living habits for at least 130,000 people thanks to the free ‘Quiero cuidarme’ app, a behavioural improvement tool aimed at the general public.

We will promote early diagnosis activities aimed at least to a third of insured persons with health insurance.

We impact more than a million people per year, promoting childhood obesity prevention in Spain.

T

Incentivise the sales force, valuing their transparency through the use of clear language.

We will achieve an 80 % CO2 reduction and a 71 % paper reduction, compared with 2004.

DKV

TRANSPARENCY TRANSPARENCY BUILDS TRUST IN SOCIETY, AND THEREFORE CREATES VALUE IN COMPANIES

RELATIONSHIP WITH PUBLIC BODIES

CUSTOMER EXPERIENCE

100 %

7,242

Taxes paid in Spain

700

Customers with oncological treatments

70 %

Information requests (mostly from the Spanish Tax Agency, Social Security and the courts)

19

2.02 %

Medical tests rejected vs authorised

5 %

Tenders submitted

80,461

DEFAULTS

78 %

88.7 %

Tests without medical authorisation

Registrations of ARCO rights (access, rectification, cancellation and opposition of personal data) and subscriptions* to our publications

10 pts

Success in claiming defaulted premiums

€ 975,169

65

Default recovery

29 %

Queries and complaints from the DGS* Main reasons: • Pre-existing conditions • Claim rejected according to the insurance policy’s conditions • Cancellation after the deadline

...

3,631

• Premium increases

2 % Debt from rent

8 % Fraud

19 %

Healthcare expenditure

7 % 62 %

Premiums

2 %

Debt from Health Spaces

Debt from mediators

24.5 %

of the health portfolio

18 %

Complaints and claims managed by the Customer Care department. Reasons: • Processing of the claim • Issues with a doctor/centre • Medical directory and authorisations • Other

83

Documents reviewed following clarity and transparency criteria

*The criteria have changed, and not only the ARCO submitted directly to the ARCO tray have been considered, but also indirect requests due to the regulatory change of December 2018.

5

EXECUTIVE SUMMARY

2019 Integrated corporate report

DIGITAL EXPERIENCE WOMAN (36 years old) Pregnant with her first daughter She lives in a large city She is employed She is a user of online services and social media

Motivations

Frustrations

Take care of herself Correctly monitor her pregnancy

The scattering of medical reports and queries about maternity

I need to take care of myself

I want to monitor my pregnancy

I check my Healthy Life Index (Quiero cuidarme+)

I check the medical directory and request an online appointment (QC+, DKV website and DKV app)

I see that I have to eat better and exercise

I keep my analyses and tests in the Health Folder (QC+)

I contact the healthy habits Coach via chat (QC+)

I buy a nutritionist voucher (DKV Club Salud y Bienestar)

I feel dizzy and contact a doctor via videoconference (QC+)

I want to clarify my doubts about breastfeeding or not. I ask my Digital midwife (QC+)

Quiero Cuidarme Mรกs is a digital health platform that enables you, as a DKV healthcare customer, to manage the most important aspects of your health, as well as take care of your own health by providing information and advice that promote healthy lifestyles.

6

DKV

CREATING SHARED VALUE + 49,000

VALUE FOR CUSTOMERS

99 %

8.1

11

Complaints resolved on time

Health recommendation

DAYS

service points

88.7 %

Average resolution time for claims and complaints

tests without medical authorisation

61 %

Medical directory with the highest number of best-rated doctors

VALUE FOR EMPLOYEES

of women staff

3

Official qualifications from the new DKV University

B+ rating

96 %

11

Permanent contracts

87

Work-life balance initiatives

€ 821,162

Years as Best Work Place

84 %

Investment in training

90 %

Satisfaction level

Level of commitment of our employees

VALUE FOR THE NETWORK OF COLLABORATORS

€ 30.3M

€ 408.6M

Commissions to mediators

Payments to healthcare providers 72 % from healthcare premiums

63,270 Hours of commercial training

+200

Brokers have participated in the new Relationship plan

SOCIAL IMPACT

Contributions by country

Health

Spain

56 %

96.3 %

Environment

Other countries

2,426 HOURS

18 %

22.9 DAYS

14.6 DAYS

Contributions by area

Money 84% Time 16%

Average payment time to general service providers to doctors in electronic billing

International cooperation

2 %

Reduced inequalities

7 %

Partnerships

Employee volunteer work

17 %

€ 501,616 Total value

ECONOMIC VALUE

€ 11.4M

Tax contribution in Spain

€ 678.6M Investments

€ 10.8M

Acts saved for the public health system

€ 107.8M

Salaries and benefits for employees

€ 503.3M Payments to suppliers

7

A PLANET WITH

FEVER? Increase in extreme temperatures

Higher frequency, intensity or amount of rainfall Higher intensity and frequency of drought Increased sea level by several metres over the next few centuries Loss of biodiversity and higher probability of forest fires Changes in the regional climate characteristics and in terrestrial and oceanic ecosystems

What impact will these changes have on people?

Increased health risks (extreme temperatures, contamination, etc.)

Less food quantity and quality

Higher risks for human safety

Impact on economic growth

Reduced water availability and worse quality (water stress)

Loss of livelihood and increase in poverty

DKV

LESS FUMES MORE PEDALS OUR GOAL

REDUCE CO2 EMISSIONS

LED lighting

High efficiency HVAC systems

Promoting the use of videoconferences

Digital medical directory

Heat recovery ventilation

Taps with sensors

Compulsory use of AVE trains instead of planes

Printers with recyclable toner

INDIRECT CONTRIBUTION TO THE ENVIRONMENT

Building awareness among stakeholders

78 %

Variable remuneration Ekoamigos Group: of the CEO linked ambassadors of to environmental results sustainability at DKV

Company’s expense with approved suppliers

Employee environmental activism sessions

2019 KEY INDICATORS

0.85 kg

5 %

Paper consumed per employee/day

35 %

Reduction in use of fuel

0

emissions

100 % Green energy

PAS2050 Calculation of CO2 emissions per policy

Emission offset

0.08 kg

47 %

Waste generated per employee/day

-24% / -78% reduction since 2017 / 2004***

54.05 l

24 %

Bottled water per employee/year

* We have increased the consumption of paper due to the fact that not yet all the policies have been issued in their digital version and the DKV logo has been changed, with now up to three different printing options for letter paper. In addition, the paper delivered to customers by legal requirement has been doubled. ** Not including Andorra. *** Scope 1 and 2.

9

OBESITY,

FIGHTING CHILDHOOD A CHALLENGE OF THE 21ST CENTURY The number of children aged 0 to 5 years that are overweight or obese increased from 32 million in 1990 to 41 million in 2016, According to the World Health Organisation (WHO) In Spain, there is a percentage of overweight or obesity of 31% in girls and 37% in boys Currently, one of the issues that most concerns health experts is the large amount of sugar we consume without realising it

According to the DKV Healthy Living Institute and Sant Joan de Déu Hospital:

45 %

of parents say that their children are sedentary for one to two hours a day

57.86 %

state that their children’s favourite leisure activity is watching television

DKV

LESS JUNK FOOD MORE FRUIT ACTIONS FOR SOCIETY MANIFEST for a responsible consumption of SUGAR in order to disclose the risks, causes and consequences for human health of an abusive consumption of this substance.

Collaboration with @carlosriosq, @luciamipediatra and @hermanostorres to spread healthy diet habits.

TED TALKS sponsored by DKV 544,188 video views 3,582 attendees to the talks

Guide to Good Practices in the prevention of CHILDHOOD OBESITY, with the Ship2B Foundation and Rafael Casas

1st Study on Healthy Habits of DISABLED PEOPLE, as well as the contexts and situations aimed at improving their well-being

Which is the Healthy Life Index (HLI) of EXECUTIVES in Spain?

Study conducted together with Universidad Europea

Quiero Cuidarme Blog Specialising in health and well-being content

4,093,416

2,612,410

page views

users

ACTIONS WITH CHILDREN, YOUNG PEOPLE, PARENTS AND SCHOOLS

Workshops on healthy habits

Learning and Service Awards

465

1,539

5,640

students

beneficiaries

52

students parents / teachers

ACTIONS WITH CUSTOMERS

Childhood Obesity Prevention Plan

Childhood Obesity Medical Helpine

Childhood Obesity service pack

Health coach and nutrition medical helpline 11

DKV MANIFESTO

We believe that a better and healthier world is possible. We’re not crazy. We’re nonconformist. We’re people who are eager to improve our surroundings.

Now we know that it’s true, that change is in our hands. The time has come to be heard louder than ever.

We’re activists!

AND WE’RE NOT ALONE There are many everyday activists out there who are infectious with their different lifestyle: parents who take care of their children and educate them in sustainability and solidarity, health professionals who fight untiringly for better health services, researchers who give their all in obtaining answers and providing resources to the world. People who change daily habits. Because big changes come from small decisions, and especially from oneself. This is why we are responsible for our health and our planet: Only if we take care of the environment will we achieve a healthier world. We’re more about the walk than the talk. Because we know each of our acts count, from bringing fruit to the office to offering more responsible insurance: A lifelong policy, a guaranteed price, with no age limits, the progressive elimination of authorisations or the promotion of telehealth, for both digital prescriptions and online video consultations. Everything helps create the change we are pursuing.

It’s now. And we’ll do it together.

WE ARE HEALTH ACTIVISTS.

ARE YOU WITH US?

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