Xavier Plana has been the head of MGC Mutua for a few months now. At the beginning of 2023, he left his position as deputy general manager to become the general manager. He succeeds Daniel Redondo, the entity’s CEO since May 2012, who became vice-president of the Board of Directors. Plana is an actuary, with a degree in Economics and Business Sciences and a financial analyst. He takes on the challenge of leading the company’s expansion process throughout the national territory.
Has the appointment as maximum representative of the company been a surprise?
It has not been a surprise because this appointment was already part of the succession strategy ordered in the entity. But it has been a satisfaction to assume this responsibility in a company like MGC Mutua, with which I fully share its values. This identification is what has led me to join this challenge.
And what are the main challenges in this new stage?
After picking up the baton from the old management, it is about giving continuity to the task well done so far, to that legacy that shows that things have been done very well. And from this moment on, we must focus on two fundamental tasks: promoting organic growth and also inorganic growth.
What main milestones does the company plan to achieve in the short term?
From a strategic point of view, the priority is to continue providing a good service to mutual members, to our customers, with very high quality standards, as shown by the surveys we frequently carry out. It is a model based on proximity, with our offices as the main reference and with a customer service that is one of our added values. It is a very close, friendly, warm and attentive service. We also have to face the diversification of products and services, as well as the promotion of new channels in these times of omnichannel, especially that of mediation, both in terms of brokers and exclusive agents. We have already started with the first exclusive agent.
What is the roadmap to expand the brand and what are the deadlines set for it?
I have spent a lot of time in the banking and insurance industry and have learned to be grounded. At MGC we have 24 offices open in Catalonia, in Madrid, in Valencia, in Palma… and I am very clear that we are going to maintain the double objective of consolidation and orderly expansion in the rest of the national territory.
In the recent insurance market there has been a lot of movement of acquisitions and mergers. Is MGC Mutua considering any new acquisition?
It is true that there have been many operations of this type and it is true that it is within our objectives to carry out some purchase action. Our solvency margin has grown by 26% as of December 31, 2022 compared to the previous year. This puts us in a good position to study any operation. Furthermore, our solvency almost triples the minimum required, specifically we are 289% above it. So far, we have already carried out eleven operations, basically in Catalonia, and all have been carried out satisfactorily. We are a territorial entity and we are committed to territorial proximity. And we have some options on the table that will probably be viable and will come to light in a few months. The idea is with those entities of small sizes, a little smaller than ours, but with values ??close to ours, to continue exploring possibilities of joining forces.
Regarding the care model, what are the strengths and differences with other competitors.
We try to differentiate ourselves. We are faithful to a traditional, close model and we are going to try to continue being leaders in quality, in advising clients and being at the top of everything in the quality rankings. The goal of our managers is to be first or second in these rankings. We cannot go down from those positions and this is, without a doubt, one of our strengths. The surveys we carry out place us as the most valued mutual entity by the group of doctors. For its part, the OCU has also placed us at the top of the customer service list in Spain. That makes us proud. And it is the result of coordinated work in which the digitization process must also be taken into account. We are now incorporating new digital tools that help us maintain this high level of quality and provide quick and efficient responses to our customers’ requests. And our medical charts are the largest on the market.
Therefore, MGC Mutua’s commitment is to quality rather than volume.
Indeed, that is clear to us. For this reason, when we talk about growth and expansion, we always do it using the word “ordered”. It seems that if the markets grow at 11 or 12%, you have a problem if you don’t grow at that speed. But the truth is that you will end up having a problem when what you are selling does not have quality. We prefer to grow at 3.6%, which is the data we have as of March 31, because we know that it is healthy growth.
A mutual also has some very specific characteristics that force it to have different rules of the game.
MGC Mutua, as an insurer, is a non-profit company that reinvests its profits in the same mutual. How do you do this? Well, expanding and improving the coverage and services offered to mutualists who are the sole owners of the entity. And we know that 50% of new customer registrations have come from recommendations from other mutual members, which reinforces our conviction that the degree of satisfaction is high.
But does the fact of being a mutual imply some kind of brake on the speed of growth?
It is clear that other legal forms have more weapons, more financial instruments, such as a capital increase, which we do not have and this is something that can affect the speed of expansion.
These last years have been marked by the pandemic. What effects has it left? Does the upward trend in contracting health insurance continue?
It is a very interesting question because if we analyze the last few years we see that not only the pandemic has caused a greater awareness of health care. We have discovered that we are not immortal and that health comes first. Material goods, a car or a house are below. If we lose health, we lose everything. It is clear that society has become aware of this. But there are other factors that favor the growth of private health insurance. On the one hand, the very expansion of waiting lists by public health has caused some discontent in part of the population. And on the other, the strategic commitment to the health branch of some general insurance companies.
How should private health services coexist with those of public health?
They have to complement each other. We are convinced that confidence in public health is very high. The problem, as I have already mentioned, is the waiting times. In this sense, private insurance has that useful and necessary complementarity function.
Has the pandemic left other clear and lasting social effects?
There has been a before and after. People have stayed at home out of obligation to safeguard general health, but, on the other hand, especially in 2022, other diseases that went beyond Covid and that could be just as or more dangerous have ceased to be observed. And now there is a return to normality.
Among the effects of Covid-19 is the fact of exposing to the public light the existence of a serious mental health problem, something that until now was under the radar.
Indeed, it has become clear that mental illnesses have gained prominence. We were already aware of the need to provide solutions for this issue and therefore the coverage of our policies already included psychological care services.
The group of doctors is frequently complaining about the low income they receive for serving the clients of insurers.
We know about this issue from the press and from what the doctors explain to us. Although we have observed that part of the market growth comes from the launch of low-cost products, with less coverage, we maintain a very strong commitment to high-quality products. We have not noticed that our public asks us for this type of product. However, we have simpler products that we have incorporated into our offer for those clients who have a specific need or who consider that it is not necessary for them to hire such a complete product. But we always maintain this quality commitment that makes our customers know us for it and identify us as an entity that prioritizes quality.
But in the face of complaints from the College of Physicians, what is MGC’s response?
We have the highest payments per visit in the market. It is a differential fact that doctors know and we do not pay more because we want to pay more, but because the service is worth it. Things have to be paid for what they are worth and health insurance, which is something transcendental as we have already mentioned, also has to be paid for what it is worth. This game on the part of some companies to pay less does not bring us anything good and we will have to take a step back and do an exercise in reflection. We will be wrong if we do not.
Has MGC Mutua done its technological homework?
We have worked on digitization in general and on more specific issues such as the irruption of artificial intelligence, which is much talked about in the press, and, on the other hand, little is said about emotional intelligence. We believe that technology will impact the efficiency of the healthcare system and the speed of response. From the point of view of MGC Mutua, we are developing solutions such as, for example, an app that we incorporate into our insurance to reduce waiting times.
Apart from the benefits, technology can also bring certain dangers. For example, in the case of telecare, some doctors have warned of the lack of privacy involved in speaking in front of a camera knowing that someone may be recording the session to misuse it…
It is a super interesting question. Technological development brings many benefits. For example, the existence of searchable knowledge databases that will allow greater agility and, at the same time, will improve diagnostic tools. The doctor depends on his own experience, but artificial intelligence gives him much more data and many more cases to expand that experience. It will be necessary to adapt this artificial intelligence to the emotional one and protect the intimacy and the right to privacy of doctors.
How do you envision health insurance in the future? It must adapt to social changes, climate change, the technological revolution…
We must carefully observe the effects of rising temperatures on health and adapt our prevention advice. Until now we have not found a correlation between a higher accident rate and heat stroke.
What is your assessment of the incorporation into the group of a company like CA Life?
We are very satisfied. We share values ??and develop synergies… It is a company that has a presence throughout Spain and is complementary.
