3 Absa Life Exco Managing Executive Life Jannie Venter PA EA Marietta PedridisManaging Executive LifeJannie VenterEAVacantGM High AdviceMugove NyimuGM Embedded ProductsKhanyi MashapaGM BranchSejal VallabhDirect and DigitalAyanda SeboniHead Customer ExperienceShelley JonesChief Financial OfficerEugene StraussChief Operating OfficerSunil NagarHead of HR LifeJameela EssopGM Risk and Capital ManagmentBertus Thomas
4 Strategic ThemesEach strategic theme has been unpacked into certain actions that are required to achieve them.These actions have been regrouped into strategic initiatives to facilitate the implementation framework of the strategyEstablish and maintain a clear focus on bancassurance and not to be distracted by smaller opportunitiesManage our key stakeholders well to ensure that they support our vision and assist us in achieving our goalsDevelop the skills and capabilities to be a global business that can implement and manage its business in many different countriesBe excellent in our core business, focussing on Product, Service, Process and SupportUnderstand how to utilise marketing and branding, and develop the skills required to make this happen in practiceContribute to the Customer Value Proposition of the bank, making the overall offering of the bank more competitiveExcel at fostering working relationships at all levels with the bankImprove our capability in branch salesEnsure our People / Employee value proposition is such that we cancontinue to attract and retain talented people and that all employees are motivated to do their bestContinue to develop our good skills in the provision of high advice productsCreate capacity in all the work we have identified. This means being very selective in what we work onLearn to interact digitally
5 What is your Business Unit’s Purpose Absa Life is a long-term insurer focusing on life insurance and investment products. The business insures a large pool of customers through a variety of distribution channels. These include the Absa Insurance and Financial Advisers (AIFA), the Absa Retail Bank branch network, a number of telesales channel partners as well as some direct platforms such as automated teller machines (ATMs), the internet and mobile phoneDescribe the Values and behaviours of your business unitAbsa Life fully subscribes to the Barclays values of Respect, Integrity, Service, Excellence and Stewardship. We believe that it is a business imperative that all staff operates from a basis that encompasses the values. We expect that all our staff live the values at all times and any behaviour that is at odds with the values is not acceptedWhat are the upcoming quarter’s focus areas for your business unitThe main focus areas for the rest of the year are to ensure that at a minimum we achieve the business targets that we have set ourselves. Another key focus area is to ensure that we start executing on our strategy. We also want to continue our journey of ensuring that we always place the customer at the centre of everything we do
6 Markets and Opportunities Whilst the life insurance market is mature in South Africa, penetration rates on the rest of the continent low. AFS’s access to the Barclays customer base and its experience of growing the mass market in South Africa stands it in good stead.Regulatory ChangesOpening up new opportunities in Africa.ConsumersGlobal trend to protection products (vs. savings) in a global financial crisis, but consumers are price sensitive and want to deal with trusted brands. AFS’s Bancassurance model delivers cost competitive products from trusted brands (Absa brand in South Africa, Barclays outside South Africa).Market PropositionLong term insurance for life and disability protectionComplex (high advice) and simple (low advice) product suiteCompetitive products in external market (pricing and benefits)Easy access via multiple channels, incl. advisors, direct / digital sales, branch networkEmbedded product suite to support bank lending productsUnder-written and non under-written based on risk profile affects premium and benefitsPackaged (OTC) solutionsStraightforward productsStrong staff proposition
7 They are responsible for: FinanceFinance can be described as the backbone to the organisation where all the different areas within the business come together from a financial point of viewThey are responsible for:The full accounting process that covers all aspects in the life cycle of a policyThe production of monthly management accounts on a very detailed product level to help the different business areas to get an understanding of their financial positionDay to day payment of the all operational payments such as claims, refunds etcProducing the annual financial statements and ensuring that the statutory audit process is conducted on a satisfactory basisThe taxation computation for the company and ensuring that all SARS payments are made on timeAssisting the actuarial team in compiling the regulatory returns and dealing with queries from the regulatorProducing the medium and short term plans for the company based input and insight from the various business areas
8 MIThe largest MI’s main purpose is to produce and implement an MI strategy that is aligned to the Absa Life strategy and this includes the following:Providing Absa Life with accurate, timeous, and relevant MI reports that enable business decision making.Provide Absa Life with regular and adhoc business intelligence that enables business to understand the trends that occur and why they occur and how best to make business decision based on these trendsContinually monitoring the industry for latest trends and developments not only in terms of MI/BI tools and methodologies but also new ways of interrogating data.optionsMaintain the full MI environment which includes the actual MI architecture, data quality, data loading, reporting, and front end BI tools.Continually look for new ways of making reporting quicker, simpler and more accurate
9 MI Bulk UploadsBulk uploads is a function that resides within MI where the daily tasks of the area include the following:Validating files received from business partners for accuracy and consistency, and continuously updating and developing new validation programmes to allow for fast and accurate corrections to data quality issuesManaging the relationship with business partners that provide data to Absa Life to ensure that all changes are understood and are implemented quickly with as little disruption as possible for business.Uploading of Credit Life files onto the MULPAS administration system, and dealing with any issues arising from this process which includes engaging with both external parties and internal ITProducing financial reports that are used as direct inputs into the Absa Life financials on a monthly basis for products uploaded.Producing MI reports that are used by business to track their business on a monthly basis.
10 High AdviceThese include the appropriate Risk and Investment Linked Endowment products, the necessary sales tools for client discussions and any technical support required for a smooth client on- boarding.Additionally, we also provide a Group Life and Cell Captive offering as alternative risk options for corporate clients.High Advice is responsible for providing Financial Planners, Financial Advisers and Wealth Managers with Life Insurance solutions.Corporate clients can achieve scale as large group and we are able to customise affordable life insurance benefits.
11 Absa Life Absa Life continues to outperform the market in terms of RoE High Advice and Simple ProductsDistribution ChannelsDeath coverFuneral coverAccidental deathPermanent disabilityTemporary disabilityRetrenchmentIncome protectionCritical illnessEmbedded channel R311m (33%) - Life, Disability and Retrenchment coverBranch channel R91m (10%) - Funeral, Life and Accident Retail BankHigh advice R289m (30%) - Underwritten life, dread disease and disabilityDirect and digital R262m (27%) - Funeral, accidental death and disability coverCall centres, ABSA online, ATM, mobile
12 BranchTheir main role is to entrench the agreed AFS Bancassurance strategy and to enable the sales teams within the retail branches to provide life cover as part of client solutioning into the Absa customer base.The Branch Channel is responsible for the efficient sales of standalone products sold through Absa’s retail branches nationally.Whilst the main function is to provide support to both sales support consultants within AFS Distribution as well as ensure sleek systems and processes for ease of selling, they also provide tactical support by identifying areas where “quick wins” may be achieved as well as ensuring strong strategic relationships within the retail bank structure are created and maintained.
13 Actuarial Business Solutions Aims to provide high quality actuarial support to the Barclays Africa life assurance entities, in the form of:Understanding the profitability of the business by monitoring the decrement and persistency experience of the book of business, analysing the sources of profit and determining the profitability of each product lineDevelopment of market leading life insurance products that meet the needs of customers, and that are priced fairly from the perspective of both policyholders and shareholdersEstablishment of sufficient reserves to meet the future obligations arising from the existing book of policies and ensuring that profits are not recognised prematurelyManagement of the business assets to ensure sufficient liquidity to meet obligations as and when they fall due, efficient asset-liability management is in place, and that excess assets generate investment returns as required by shareholdersMonitoring the solvency of the company by ensuring that excess assets are produced from the business operations and that sufficient capital is retained to withstand adverse experienceCompliance with Regulatory requirements are met, in particular with respect to solvency, investment restrictions, treating customers fairly and regulatory reporting
14 EmbeddedThe Embedded Business unit follows the Bancassurance Model, where a partnership or relationship between Absa Life and Absa Retail bank if formed to create a platform in the bank’s infrastructure to sell insurance products to the bank customers.Our primary product is credit life insurance which is easily accessible, need specific product that ensures comprehensive insurance cover in the event of death, retrenchment, dread disease and disability of permanent or temporal nature.Credit life insurance is offered to any customer who has successfully applied for any core credit facility provided by the bank. These can include Vehicle and Asset Finance, Personal Loans, Micro Loans, Credit Card, Revolving Loans, Mortgage Loans, Overdraft facilities as well as credit granted against pension funds.The embedded team members are therefore responsible for effective management of relationships with the bank stakeholders and to influence stakeholder’s attitudes, decisions and actions in the manner they sell our products. And to provide them with maximum support to be able to sell our products and increase the bank’s customer value proposition.
15 in a competitive environment. In Absa Life the voice of customer has been significantly elevated in recognition of fact that delivering customer value is a key differentiatorin a competitive environment.With our priority firmly on our customers we will be focusing on a number of initiatives to build a capability that will enable us to deliver winning value propositions to customers and employees to support Absa Life’s strategic intent to become a world class bancassurer.These includeImprove our retention capability by analysing customer insights of exitingclients and addressing sub optimal process, service or product issuesBuild a customer dashboard with appropriate management informationUse marketing and communications to effectively present our value promise to customers and internal stakeholdersCollaborate with internal stakeholders who touch customers to understand their needs and establish how we can support them inbuilding strong lifelong relationshipsIdentify the world-class best practices employed for building and leading acompetitively unique customer centric enterpriseIntegrate Absa Life solutions into the Customer Value Proposition of the bankBuild a competence aroundgathering customer insightsCustomer Experience
16 We bring simple, efficient products to you. Direct and DigitalAt direct and digital we understand that not everyone has time to come into the branch or meet with an advisor.We bring simple, efficient products to you.Utilising Online, mobile and telephony we present our clients with an opportunity to secure their futures by taking out life insurance products that suit their needs.Click, ClickRing, Ring
17 The Chief Operating Office Underwriting is the process of identifying and classifying acceptable risks for insurance companies. Underwriting is essentially an extension of the product pricing process. To determine the basic premium for a standard risk, age, gender and smoking habits are generally used.
18 The Chief Operating Office An underwriter needs to determine the factors that presents a higher than standard risk (the factors over and above age, gender and smoker status). When a risk is identified as higher than normal, we refer to it as a substandard risk.Underwriting considerations include medical and non- medical factors when classifying the risk. Examples of medical factors include diseases such as high blood pressure, overweight, heart attack, stroke and cancer. Examples of non-medical factors are: dangerous hobbies, risks associated with certain occupations and financial risks.Substandard risks are charged a higher premium - the underwriter’s job is to determine the extra premium to be charged.UNDERWRITE = Understand the risk,Write profitable business.
19 The Chief Operating Office Operational Risk (OpRisk) is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. OpRisk responsibilities include the assistance to business in embedding the OpRisk Framework, (including tools and other support) as well as providing independent oversight and challenge across the business.
20 The Chief Operating Office We support and inform the Board and Exco on any relevant issues, and also assist business to prevent/minimise operational risk events and losses.We also provide the link between business and Audit, and facilitate the process.