In the latest survey of clients of Danish commercial life and pension companies conducted by Aalund Business Research, Danica once again achieved better than industry-average ratings from corporate clients with 10-499 employees.
Danica Pension has the highest client satisfaction rating among the largest players in the Danish pensions market. A couple of minor pension companies have performed slightly better, but Danica Pension will proactively try to influence this picture over the coming years.
Speedy service – top performance
Danica Pension emphasizes prompt and professional service when a pension scheme is established, when changes are made, and if an accident occurs. The survey indicates that Danica Pension ranks as one of the best performers in the market in terms of processing, advice and service to clients. This is mainly due to Danica’s ability to understand each company’s situation, and to adjust its services to meet employees’ needs.
Shortest processing times in the industry
Not content with its already good results, Danica Pension is working to further improve its performance. Despite having the shortest processing times in the industry, in 2006 Danica decided to focus even more on this. As a result, Danica is the first and only pension company in Denmark to offer financial compensation of DKK 300 to customers if their pension scheme is not set up within 20 working days of signing the application form.
The scheme has been a great success. Having budgeted for compensation of DKK 2 million the first year, total compensation paid in 2006 “only” amounted to DKK 192,000. From October 2006 to September 2007, some 77.2% of all new pension schemes were established within five working days. Danica Pension’s goal is to process 90% of all new pension schemes within five working days. You can track how well the company is achieving its goals by checking processing times on Danica Pension’s website.
Danica Pension reduces prices
Since spring 2006, Danica Pension has reduced its prices three times. The company plans to drop its premiums even further, giving a total estimated impact of DKK 500 million in savings for clients over five years. The survey also showed that client understanding of Danica Pension’s prices has improved – which is very gratifying.
PFA Pension achieves more satisfied customers
According to the results of Aalund Business Research surveys, PFA has experienced increased customer satisfaction over the last few years. This has been reflected in customer assessments of the advice and levels of service delivered by account managers, as well as by responses to PFA’s handling of administration by its customer services departments.
Focus on large and medium-sized customers
PFA Pension’s core business area is large and medium-sized companies, and the Aalund Business Research survey clearly proves that PFA has been able to maintain focus and reap the benefits of this segmentation. PFA has the highest client satisfaction within the Danish pension industry when it comes to companies with 50-499 employees and companies with more than 500 employees on a 1-5 scale.
Decision makers for employee benefit plans in the large and medium-sized companies and organisations are indeed very satisfied with PFA. In a survey of customers who are directly serviced, 95% were satisfied or very satisfied with PFA. 91% would be willing to recommend PFA as a pension supplier, which reflects a very high level of customer loyalty.
PFA’s image profile 2007
PFA outperformed the industry average both when it comes to a high return and a low level of expenses.
Low level of expenses means larger savings
PFA has yet again reduced the expenses significantly in connection with their market rate product, PFA Unit Linked. Effective as from 1 June 2007, deposit expenses were reduced by more than 60 per cent and the maximum amount of annual deposit expenses were reduced from DKK 4,670 to DKK 1,335.
With this, a typical customer with a deposit of DKK 500,000 will save more than DKK 1,300 annually.
The outlook for 2008
PFA Pension will not be resting on its laurels: there are still several improvements to carry out, although it is extremely satisfactory that so many large and medium-sized customers have given PFA such high scores for visibility and reputation.
Good and impartial advice regarding savings, and accurate and professional treatment in connection with health issues, clearly matter most when it comes to customer satisfaction. With this in mind, PFA intends to strengthen its efforts to communicate directly with decision makers about PFA’s value creation model, counselling and services.