Momentum Myriad

55
MOMENTUM MYRIAD 2016

Transcript of Momentum Myriad

Page 1: Momentum Myriad

MOMENTUM MYRIAD 2016

Page 2: Momentum Myriad

R45 BILLION

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Myriad philosophy

Individual risk rating Building block approach

Breadth of cover Living product

Transparency

Treating Customers Fairly

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WE BELIEVE IN THE UNIQUENESS

OF EACH INDIVIDUAL

Building

block

approach

Individual Risk

Rating

Best of

breed

Living

Product

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Refined and dynamic risk rating

Interactive experience

75% Interactive take-up

10% Average discount

30% Multiply take-up

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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

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Sustainability and certainty

Myriad “free”

guarantee

Guarantee term

extender

Unsurpassed premium certainty

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

Individual

Risk Rating

Building block

approach

Best of breed Living

Product

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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

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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

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Alterations more important

0%

5%

10%

15%

20%

25%

30%

35%

40%

Proportion of business from alterations

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EASIER

ALTERATIONS

40% of alterations with

no or limited

underwriting

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Persistency trend

2008 to present

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BELIEVE IN

RESPONSIBLE

INNOVATION

Individual risk

rating

Building

block

approach

Best of breed

Living

product

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EVOLUTION OF INCOME

PROTECTION AND CRITICAL

ILLNSS BENEFITS

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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)

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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

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R

R

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R

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R

R

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R

R

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R

R

R

R

R

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NEW

NEW

NEW

NEW

NEW

NEW

NEW

NEW

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• Early tiered pay-outs essential

• Breadth of cover

• Simplicity for clients

• Simplicity for advisers

• Affordability

• Longevity

Critical Illness: What is most important?

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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

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MOST COMPLETE INCOME

PROTECTION AND CRITICAL

ILLNESS SOLUTIONS

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KEEP EXISTING CLIENTS’

BENEFITS UP TO DATE WITH

THE LATEST ENHANCEMENTS

Individual risk

rating

Building block

approach

Best of breed

Living product

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INDEPENDENTLY RATED BY IFAS

AS THE PROVIDER WITH THE

BEST PROPOSITION

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Provider with best proposition

Business Assurance

Disability Income

Standalone Life

Comp. Plan

Momentum

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TOTAL LIVING BENEFIT ENDORSEMENT COST R200 MILLION

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COST OF “LIVING BENEFIT”

CLAIMS 2014 R25 MILLION

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TOTAL MOMENTUM INTERACTIVE DISCOUNTS

R1.1 BILLION

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TOTAL RETIREMENT BOOSTER ALLOCATIONS – R540 MILLION

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WHAT TO EXPECT

FROM MYRIAD

28

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IN EVERY RISK WE

LOOK FOR AN

OPPORTUNITY

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Turn-around

times

30

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First

requirements

90% within

6 working hours

31

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Time to set

up appointment

80% within 24

hours

32

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Completing

the

appointment

90% within a

week

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Underwriting as part of pricing

0%

5%

10%

15%

20%

25%

30%

Counteroffer rate over the past 10 years

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MORE THAN 85% OF

COUNTEROFFERS ACCEPTED

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Medical underwriting for TIP/BOP/BP

• Waiting periods

• Exclusions vs loadings

• Depressions/connective tissue disorders/auto immune

diseases

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Occupational underwriting for TIP/BOP/BP

• Quotation upgrade for new occupations

• Work percentage very important

• Grey occupations (business owners / directors /

managers)

• Waiting periods

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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.

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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

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LARGEST DEATH CLAIM

R85 MILLION

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LARGEST DISABILITY CLAIM R7 MILLION

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LARGEST CRITICAL ILLNESS CLAIM R5 MILLION

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LARGEST INCOME

DISABILITY CLAIM

R593 000 P.M.

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95.3%

4.3% 0.4%

Claims paid

Did not meet policy definition

Repudiated

Claims paid

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88%

12%

Non-disclosure

Suicide

Reasons for repudiated claims

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NO OMBUD

RULINGS AGAINST

MYRIAD IN 2015

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SOME INTERESTING

OBSERVATIONS

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TERMINAL ILLNESS CLAIMS STAND OUT AGAIN R49 MILLION

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Big 4

Down from

2014

78% to

71%

2015

71% to

68%

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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

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Lower than industry repudiations

0.4%

Momentum

1%

Industry

1.1%

0.5%

2012 2013 2014

1.1%

0.8%

0.4%

2015

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Relevance of income disability

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

Musculo-

skeletal Surgery Cancer Fractures &

Hospitalisation Urogenital

system

Psychiatric/

Mental

5%

Nervous

system

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LONGEVITY

PROTECTION

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Thank you