The hectic business environment and intensifying competition obligate the company to periodically examine its manner of coping and deployment inregards to its strategical business targets. In view of the material developments in the company’s business environment in recent years, the company had, in 2017 and at the beginning of 2018, initiated a process of validating and updating its business strategy. This includes giving meticulous attention to the following issues: the product mix marketed by the company, our manner of pricing and doing business, our choice of distribution channels, the way the company manages investments as well as Migdal Insurance’s management of its financial situation in view of the new solvency policies.
The group’s main strategic target, as established by the company’s board of directors, is significant and consistent profitability over time. This is done by expanding and diversifying the company’s earnings base and is realized through the following strategic goals: leadership in the insurance and savings field; leadership in investments, service, innovation and technologies; streamlining technological processes and human capital.
Following are details regarding the group’s strategic targets as on the date of this report:
Leadership in the insurance and savings fields - In order to realize this strategic target the group is working at maintaining a broad product mix.
In the long-term savings field, the group works at continuing as leaders by developing new products adapted to the changing regulatory and competitive reality, and by adapting its distribution systems to the changing market requirements, including focusing on transferring accruals to savings products, all this in order to improve sales capabilities and preserve customer portfolios.
The group is diversifying its earnings sources by expanding the general insurance and health insurance fields and spreading the risk with savings products in the life insurance and long-term savings fields. It is also working towards expanding sales to existing customers. The established targets are tested against the the company’s general performance and specifically against its compliance with the solvency ratio,including changes and tweaks of the products mix, the acquiring of reinsurances, etc.
Investments - The company is working towards obtaining surplus returns via calculated intelligent risk management. To this purpose, it is diversifying its investments, which include extending investment transactions with overseas markets and deepening investments in channels that, to the group’s estimation, will yield surplus returns. Among others these includes investments in real estate and providing credit and investing in Investment Funds and infrastructures.
Service - The company is working towards consistently improving customer loyalty and satisfaction and towards the improvement of its distribution channels. It has set itself the target of being a leader in the sector in relation to its customers and distribution channels. To this purpose, the company has placed an emphasis on providing a unique service that integrates technology and digital tools for the purposes of streamlining and simplifying the sales and operating processes, pursuant to its customers’ needs.
Technological innovation - The group has set itself the target of being a leading player in technological innovation, which would serve as a means for supporting innovation in the insurance, marketing, investments and service products. The company is also working towards using innovation as a means for the automation of processes and expanding self-service options for customers and distribution channels.
Streamlining technology, processes and human capital - The group is working towards improving operational efficiency, via examining improvement options of the group’s main business processes, implementing advanced technological systems, including the development of various digital tools and via organizational changes, all while maintaining and continuing to nurture the group’s professional and quality human capital.