Value creation in Topdanmark

Topdanmark's value creation efforts are intended to:

•    increase the cash flow it can pay out to its investors
•    while at the same time reduce the discount rate used by the market to discount the future
     cash flow to net present value.

Topdanmark's systematic value creation efforts have built a strong business model which, with relatively limited financial risk, substantially ensures that a profit is likely to be made even in years with extremely poor financial markets.


Cash flow

Topdanmark believes that success in the Danish insurance market is best achieved by combining strong distribution power with risk-based prices, an efficient organisation and satisfied customers.



Distribution power

Topdanmark has a multi-distribution strategy in which its own sales channels (certified insurance sales representatives, sales centres, telephone sales, online sales etc.) are supplemented by sales or referral of leads through its distribution partners such as banks, car dealers and insurance brokers.


Activities associated with distribution power

  • Topdanmark has distribution agreements with, among others, Sydbank and COOP. As a result of the distribution agreement with Sydbank, non-life insurance forms part of the bank's loyalty programmes. It is a referral concept, where the bank refers potential non-life insurance customers to Topdanmark, which then is responsible for sales and advice.
  • In the personal segment, the certified insurance sales representatives will to a greater extent make risk assessments on new sales, while sales commissions are determined on the basis of customer satisfaction and profitability. This is expected to improve the quality of new sales
  • Typically, profitability for major industrial businesses does not meet Topdanmark's re-turn requirements. Therefore, Topdanmark has chosen to reduce exposure towards in-dustrial companies to zero and focus on SME customers.


Topdanmark works with differentiated pricing based on risk-appropriate prices, i.e. micro rating. This makes Topdanmark an attractive insurance company to customers with favourable claims trends, while customers with less favourable claims trends are incentivised to change to other insurance companies with a less risk-dependent pricing structure.


Activities associated with pricing

  • Topdanmark continues its work with more finely meshed and risk-based correct prices, through use of digital solutions, publicly available data and advanced pricing models
  • Topdanmark has no current plans to make general price increases. Instead it is implementing measures for non- profitable customers (e.g. loss prevention, lower sums insured, increased retention and selective price increases)

Workers’ compensation insurance for the industrial segment has been unprofitable for a number of years, and at the same time competition has been intense.Topdanmark’s risk-based prices have not matched the market price. Therefore, the workers’ compensation portfolio has been reduced by 50% since 2008. Topdanmark maintains its risk-based prices which among other things take account of the low interest rate level, the rise of the age of retirement and the new reform of the rules for early retirement.


Topdanmark has focus on improving efficiency and automating a significant part of its processes in order to be able to offer its customers easy, simple and rapid service while maintaining competitive prices.

Activities associated with efficiency

Topdanmark has decided to invest in efficiency improvement in future. The main elements of the efficiency improvement programme are:

  • Digitisation – self-service, online purchase etc.
  • Efficiency improvement – optimization and automation of administrative processes and outsourcing
  • Transformation – performance and change culture


Customer satisfaction

Topdanmark lives off helping people and companies. Our livelihood is to inform, service and advise our customers – both before, during and after a claim. We are only doing our job well, if the customers are satisfied as the customer experience is one of the most important elements when creating long-term, solid and profitable customer relations.

Therefore, in contact situations, we ask the customers about their customer experience with us – both for digital and  personal contact. This way, we receive feedback from more than 180,000 customers per year, and we use this feedback to improve our processes, communication, products and services.

In addition to internal monitoring, Topdanmark also participates in the annual EPSI survey across most of the major insurance companies. For both the private and SME segments, Topdanmark is on par with the other large companies. In KPMG’s annual Customer Experience Excellence survey, Topdanmark has been the best ranging insurance company in Denmark for two consecutive years.


Activities associated with customer satisfaction

  • For all communication channels – telephone calls, digital self-service, meetings, after claims and when using collaboration partners – we collect the customers’ feedback on the service level, thus we can identify opportunities for improvement.
  • If a customer's answer indicates that Topdanmark's services were not satisfactory, the customer will be contacted to remedy the experience. Positive feedback is sent directly to the employees as a pat on the shoulder.
  • We monitor and report on NPS (Net Promotor Score) and CES (Customer Effort Score).
  • We have created a service concept that ensures high quality and continuous improvement of the communication to our customers.
  • We continuously analyse the connection between the customer experience and the satisfaction and loyalty in order to understand how we, from a customer perspective, can create and maintain the best possible good and sustainable customer relation.

Share price

Investor contact
Steffen Heegaard, head of IR and Group Communications is responsible for the contact to share analysts and institutional investors:

Tel: +45 44 74 40 17
Mobile: +45 40 25 35 24