MOMENTUM MYRIAD 2016

R45 BILLION

Myriad philosophy

Individual risk rating Building block approach

Breadth of cover Living product

Transparency

Treating Customers Fairly

WE BELIEVE IN THE UNIQUENESS

OF EACH INDIVIDUAL

Building

block

approach

Individual Risk

Rating

Best of

breed

Living

Product

Refined and dynamic risk rating

Interactive experience

75% Interactive take-up

10% Average discount

30% Multiply take-up

Value proposition integrating Momentum Interactive and Multiply

Actual

Income

and

education

Health and

lifestyle

Wellness

activities Fitness

Personal risk rating

Momentum Interactive

Momentum Multiply

Fitness

R R

Sustainability and certainty

Myriad “free”

guarantee

Guarantee term

extender

Unsurpassed premium certainty

DON’T BELIEVE IN A ONE-SIZE-FITS-ALL APPROACH

Individual

Risk Rating

Building block

approach

Best of breed Living

Product

Sustainability and certainty

Lifestyle

protection

Asset

protection

Income

protection

Critical Illness benefit

Temporary Income

protection

Functional Impairment

benefits

Lump sum disability benefits

Income protection

Death Benefit

Death Benefit

Death Benefit

Compulsory increase % selected

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

<20 20 - 24 25 - 29 30 - 39 40 - 49 50 - 59 60 - 64

Alterations more important

0%

5%

10%

15%

20%

25%

30%

35%

40%

Proportion of business from alterations

EASIER

ALTERATIONS

40% of alterations with

no or limited

underwriting

Persistency trend

2008 to present

BELIEVE IN

RESPONSIBLE

INNOVATION

Individual risk

rating

Building

block

approach

Best of breed

Living

product

EVOLUTION OF INCOME

PROTECTION AND CRITICAL

ILLNSS BENEFITS

Most comprehensive income protection

Own occupation

definition

Impairment

or illness event

Severity of disability

(Sickness benefit)

Loss of income

(Indemnity)

R

R

(Defined payout levels

and payment periods)

Income Protection Evolution

Temporary Income Protector

Income Protector Benefit

Temporary Group Income Top-

up

Group Income Top-up

Functional Protector

Complete Functional Protector

Business Overheads Protector

Business Protector

(Professional)

Business Protector (Self

Employed)

Annual Income Commutation

Income Enhancer

Complete Family Protector

Longevity Protector

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

R

NEW

NEW

NEW

NEW

NEW

NEW

NEW

NEW

• Early tiered pay-outs essential

• Breadth of cover

• Simplicity for clients

• Simplicity for advisers

• Affordability

• Longevity

Critical Illness: What is most important?

Critical Illness Evolution

Complete Critical Illness Benefit

• Specified Claim Event Enhancer

Complete Enhanced Critical Illness Benefit

Child Critical Illness

Early Cancers

Breadth of Cover Guarantee

Longevity Protection

Birth

Death

Critical illness

Critical illness

MOST COMPLETE INCOME

PROTECTION AND CRITICAL

ILLNESS SOLUTIONS

KEEP EXISTING CLIENTS’

BENEFITS UP TO DATE WITH

THE LATEST ENHANCEMENTS

Individual risk

rating

Building block

approach

Best of breed

Living product

INDEPENDENTLY RATED BY IFAS

AS THE PROVIDER WITH THE

BEST PROPOSITION

Provider with best proposition

Business Assurance

Disability Income

Standalone Life

Comp. Plan

Momentum

TOTAL LIVING BENEFIT ENDORSEMENT COST R200 MILLION

COST OF “LIVING BENEFIT”

CLAIMS 2014 R25 MILLION

TOTAL MOMENTUM INTERACTIVE DISCOUNTS

R1.1 BILLION

TOTAL RETIREMENT BOOSTER ALLOCATIONS – R540 MILLION

WHAT TO EXPECT

FROM MYRIAD

28

IN EVERY RISK WE

LOOK FOR AN

OPPORTUNITY

29

Turn-around

times

30

First

requirements

90% within

6 working hours

31

Time to set

up appointment

80% within 24

hours

32

Completing

the

appointment

90% within a

week

33

Underwriting as part of pricing

0%

5%

10%

15%

20%

25%

30%

Counteroffer rate over the past 10 years

MORE THAN 85% OF

COUNTEROFFERS ACCEPTED

Medical underwriting for TIP/BOP/BP

• Waiting periods

• Exclusions vs loadings

• Depressions/connective tissue disorders/auto immune

diseases

Occupational underwriting for TIP/BOP/BP

• Quotation upgrade for new occupations

• Work percentage very important

• Grey occupations (business owners / directors /

managers)

• Waiting periods

Financial underwriting for TIP/BOP/BP

• Why? Ensure that the insured is not in a better position in the case of an event

Minimise the 'moral' risk: effecting an insurance policy in itself increases the chance of

an insured event

Minimise the risk of lapse and/or early surrender of the policy by ensuring that

insurance is appropriate and premiums affordable.

• What do we need? >R50 000 pm*

• Proof of income: tax return (IRP5/ITA34)

• Proof of overheads expenses, i.e. income statement (Specified Expenses Only)

• Proof of fee income , i.e. income statement (NB professional vs non-professional)

• Important: Income Protector Benefit

• 75% of Net Income from nominated occupation

Temporary Income Protector

• 100% of Net Income from nominated occupation

*passive income earned by way of investments etc. cannot be included as income to be insured under the income benefits.

We look for reasons to pay claims:

Risk claims 2015

Disability

R242 million

Critical illness

R398 million

Death

R2.4 billion

Income disability

R91 million

Total paid

R 3,1 billion

LARGEST DEATH CLAIM

R85 MILLION

LARGEST DISABILITY CLAIM R7 MILLION

LARGEST CRITICAL ILLNESS CLAIM R5 MILLION

LARGEST INCOME

DISABILITY CLAIM

R593 000 P.M.

95.3%

4.3% 0.4%

Claims paid

Did not meet policy definition

Repudiated

Claims paid

88%

12%

Non-disclosure

Suicide

Reasons for repudiated claims

NO OMBUD

RULINGS AGAINST

MYRIAD IN 2015

SOME INTERESTING

OBSERVATIONS

TERMINAL ILLNESS CLAIMS STAND OUT AGAIN R49 MILLION

Big 4

Down from

2014

78% to

71%

2015

71% to

68%

Earlier pay-outs are increasing

0

10

20

30

40

50

60

70

100 75 50 25

Pay-o

ut P

erc

en

tag

e

Pay-out Level

2014

2015

Lower than industry repudiations

0.4%

Momentum

1%

Industry

1.1%

0.5%

2012 2013 2014

1.1%

0.8%

0.4%

2015

Relevance of income disability

25% 9% 8% 7% 11% 7%

Musculo-

skeletal Surgery Cancer Fractures &

Hospitalisation Urogenital

system

Psychiatric/

Mental

5%

Nervous

system

LONGEVITY

PROTECTION

Thank you