The principle of multi-channel distribution goes hand-in-hand with the multi-brand strategy. Vienna Insurance Group uses multiple distribution channels to approach customers. This takes into account the personal advisory preferences of its policyholders. One customer might prefer personal discussions with an adviser, while another might prefer talking with a broker, and others might purchase insurance online. Many paths lead from Vienna Insurance Group to its customers. The combination of different distribution channels and the broad geographical presence of the Group are an expression of the principle of diversification followed by the Group.
The extent to which the companies use the different distribution channels varies greatly. How important a distribution channel is in a market depends on the legal framework and the level of development of its insurance sector. The specific business model used by the company also plays an important role. VIG unites companies with different distribution models under one roof: full-service providers with salaried sales staff, and insurance companies distributing exclusively through banks or brokers.
Build on the partnership with the Erste Group
Vienna Insurance Group and the Erste Group are joined in a strong partnership. The two groups have Austrian roots and similar expansion strategies, and laid the foundations for their long-term cooperation in 2008. VIG acquired all of the insurance activities of the Erste Group, and entered into a long-term cooperation agreement with the bank. This agreement includes a commitment by Erste Group companies to sell the insurance solutions of Vienna Insurance Group, and a commitment by VIG to offer selected Erste Group banking products to its customers.
Bank distribution has become increasingly important in recent years. VIG in particular has benefited greatly from this due to its close cooperation with the Erste Group. Increased distribution through banks has significantly strengthened Vienna Insurance Group’s position in Austria and the CEE region. The s Versicherung companies are recording excellent performance and VIG is the market leader in life insurance in its core markets.