1. insurance conference june 2012

2. building a sustainable financial services industry Problem statement: Financial services facing a crisis of confidence are we losing the battle of public opinion? the regulatory response an over-reaction? the industry response are we fuelling the fire? How should we as an industry, respond?

3. Financial Services – A crisis of confidence  The financial crisis started 4 years ago  Have we learnt any lessons?  How does the world perceive us?

4. Have we learnt any lessons?

5. building a sustainable financial services industry How does the world perceive us? CEOs rolling in money and stock options ​

6. there is no place to hide “Consumers are the only important group in the economy who are not effectively organised, whose views are often not heard.” JFK, 1962

7. the regulatory response? to name but a few…

8. the regulatory response? to name but a few… binder regulations FSLGAB SAM TCF CPA micro insurance micro insurance FAIS regulations re exams FAIS regulations conflict of interest

9. we need to consider the intent: eliminate conflicts of interest create greater transparency ensure enforceability provide financial security ensure professionalism

10. how many consumers understand who they are buying protection from and who is getting paid for doing what?

11. regulatory response an over-reaction?

12. 2011 economic losses to date are approaching USD400 billion while the average from 2004 to 2010 was USD89 billion. Global catastrophe losses in 2011 = $ 100bn. Lloyds net losses in 2011 = $ 20.5bn. There will be no material impact on the Central Fund Richard Ward: CEO of Lloyds

13. the industry response

14. how much of this promotes our industry? annual advertising spend for short-term insurance is R1,5bn the industry response fuelling the fire?

15. Occupational group Current employment RetirementMortalityLeaving the Sector Total Replacement Demand New employment Total Positions to fill Managers14 7895912954431 3292951 624 Professionals26 6728005333 2004 5332 1336 666 Technicians and Trade Workers1 872563722431774391 Community and Personal Service Workers 3420610161329 Clerical and Administrative Workers 45 249904 2 2624 0702 2626 332 Sales Workers13 931278 6961 2526961 948 Machinery Operators and Drivers 2675513231033 Elementary Workers1 02420 519140 131 Total103 7442 6542 0786 89911 6315 52317 154 the industry response War on talent

16. Not surprising the top two issues dominating CEOs’ time – regulation and talent! the industry response war on talent

17. "Mark and his signature hoodie: He's actually showing investors he doesn't care that much; he's going to be him," Michael Pachter, an analyst for Wedbush Securities, said in an interview on Bloomberg TV. "I think that's a mark of immaturity. I think that he has to realize he's bringing investors in as a new constituency right now, and I think he's got to show them the respect that they deserve because he's asking them for their money."

18. How do we, as an industry, respond?

19. Ours is a noble purpose But do we do enough to protect our industry?

20. Our problem is not unique

21. There are examples of leadership

22. [Change picture to something more relevant] We need to work with all stakeholders

23. including the regulator

24. wrapping things up conclusion Ours is an industry in a state of transition facing a crisis of confidence the need to project a positive image a collective responsibility requiring individual leadership united behind our noble purpose so let’s be……..

25. proudly insurance 