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Transcript of SOUTH AFRICAN INSURANCE ASSOCIATION. Access to financial services presented by Leila Moonda 26th...
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SOUTH AFRICAN INSURANCE ASSOCIATIONSOUTH AFRICAN INSURANCE ASSOCIATIONSOUTH AFRICAN INSURANCE ASSOCIATIONSOUTH AFRICAN INSURANCE ASSOCIATION
.
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Access to financial Access to financial servicesservices
presented bypresented by
Leila MoondaLeila Moonda
26th 26th August August 20052005
PCOFPCOF
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Transforming the Transforming the short-term insurance short-term insurance
industryindustry
• HistoryHistory• GoalsGoals• ChallengesChallenges• ProgressProgress
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HistoryHistory
The Financial Sector Charter, which The Financial Sector Charter, which was signed in October 2003, was signed in October 2003, effectively commits all signatories effectively commits all signatories to actively promote a transformed, to actively promote a transformed, vibrant and globally competitive vibrant and globally competitive financial sector that reflects the financial sector that reflects the demographics of South Africa and demographics of South Africa and contributes to the establishment contributes to the establishment of an equitable society by of an equitable society by effectively providing accessible effectively providing accessible financial services to black peoplefinancial services to black people
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History cont.History cont.
Effective access to short-term risk Effective access to short-term risk insurance products and services insurance products and services meansmeans
• appropriate and affordably pricedappropriate and affordably priced• made available through made available through
appropriate and accessible appropriate and accessible infrastructureinfrastructure
• to 6% of black persons in the LSM to 6% of black persons in the LSM (Living Standard Measures) 1-5 (Living Standard Measures) 1-5 grouping by 2008grouping by 2008
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GoalsGoals
SAIA identified two major goals SAIA identified two major goals i.t.o. access:i.t.o. access:
1.1. To broaden access to the products of the To broaden access to the products of the short-term insurance sector short-term insurance sector
= Appropriate product= Appropriate product
2.2. To educate consumers in LSM 1-5 market To educate consumers in LSM 1-5 market re financial services sector products re financial services sector products
= SAIA FSC Consumer Education = SAIA FSC Consumer Education InitiativeInitiative
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Product: ChallengesProduct: Challenges
• Target marketTarget market• Product usageProduct usage• Current distribution and Current distribution and
communicationcommunication• Premium payment facilitiesPremium payment facilities• Physical access & service Physical access & service
deliverydelivery
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Product - progressProduct - progress
• SAIA Access Group finalised SAIA Access Group finalised position on accessposition on access
• Approved by the SAIA BoardApproved by the SAIA Board• Currently in product design phase Currently in product design phase
after having talked with the after having talked with the target markettarget market
• Next steps will include getting Next steps will include getting buy-in from all relevant partiesbuy-in from all relevant parties
• Launch date planned for 2005Launch date planned for 2005
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Product (cont)Product (cont)
• Traditional & non traditional Traditional & non traditional distribution channelsdistribution channels
• MeasurementMeasurement– Effective = policies sold and in
force– 1 point: industry target– 3 points: individual targets
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Product (cont)Product (cont)
Only the personal lines Only the personal lines insurance requirements will insurance requirements will be addressed at this point. be addressed at this point. Any commercial or SME Any commercial or SME requirements may be requirements may be addressed at a later stageaddressed at a later stage
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Product: What will it Product: What will it look likelook like
• A generic product will be developed A generic product will be developed in accordance with the guidelines in accordance with the guidelines for general use by the industry. This for general use by the industry. This product will be branded in line with product will be branded in line with the Mzansi bank account. the Mzansi bank account.
• Generic product to cover basic Generic product to cover basic risks:risks:– Homeowners & household contents
combination, cell phone as starting point
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Product: What will it Product: What will it look likelook like
This will be a no frills policy to This will be a no frills policy to provide cover for the home, provide cover for the home, household goods and personal household goods and personal effects against specified perils i.e. effects against specified perils i.e. Fire, Lightning, Explosion, Storm, Fire, Lightning, Explosion, Storm, Flood, Impact and Theft (sudden Flood, Impact and Theft (sudden and unexpected events)and unexpected events)
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Product: LanguageProduct: Language
• Although current research Although current research indicates that the client would indicates that the client would accept English legal accept English legal documentation, service and documentation, service and marketing could be in the marketing could be in the client’s language of choice.client’s language of choice.
• Policy documents are being Policy documents are being designed in simple, plain designed in simple, plain English.English.
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Product: Premium Product: Premium CollectionCollection
– Existing traditional and non-traditional methods
– Irregular premium payment– NB!!! Mzansi
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SAIA FSC Consumer SAIA FSC Consumer Education InitiativeEducation Initiative
Viviene PearsonViviene Pearson
2626thth August August 20052005
PCOFPCOF
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SAIA FSC Consumer SAIA FSC Consumer Education Initiative – Education Initiative –
ProgressProgress• Strong commitmentStrong commitment• Recommended pooling of 0.2%’sRecommended pooling of 0.2%’s• R4 million i.t.o. 2004 profits R4 million i.t.o. 2004 profits
(More about projects to follow)(More about projects to follow)• R7.4 million i.t.o 2005 profits R7.4 million i.t.o 2005 profits
(Projects already recommended (Projects already recommended to our committee)to our committee)
• Synchronised effort – FSB Synchronised effort – FSB strategystrategy
• Set own criteria i.t.o. Charter - to Set own criteria i.t.o. Charter - to be followed strictlybe followed strictly
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SAIA FSC Consumer SAIA FSC Consumer Education Initiative – Education Initiative –
ProgressProgressWorkshop:Workshop:
1. Project plan for implementation:– Separate independent initiative– Separate bank account– Project Panel– Collection of funds– Selection of projects – approval
process– Implementation of projects plus
transfer of funds
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SAIA FSC Consumer SAIA FSC Consumer Education Initiative – Education Initiative –
ProgressProgressWorkshop:Workshop:
2. Criteria– Must have stated objective consistent
with Charter – Measuring effectiveness of projects is
NB– Must be aimed at black people– Must be aimed at LSMs 1 – 5– Must be focusing on financial
knowledge – generic programmes not insurance only!!!
– Must reach as many people as possible
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SAIA FSC Consumer SAIA FSC Consumer Education Initiative – Education Initiative –
ProgressProgress2. Criteria – continued
– Must be education – not marketing!!!– Must have timeline/timeframe– Cost must be identified, monitored,
adhered to– Must identify appropriate target
market – Holistic approach to be sought –
synergies with other consumer education strategies (e.g. FSB – maximise efforts)
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SAIA FSC Consumer SAIA FSC Consumer Education InitiativeEducation Initiative
2004 Projects – meeting all these 2004 Projects – meeting all these criteria & objectives!!!criteria & objectives!!!
Teacher training plus resource Teacher training plus resource = R1 000 000 = R1 000 000 (+ FSB contribution = R500 000)(+ FSB contribution = R500 000)
• Resource published, distributed• Workshops are being rolled out in
all provinces, subject to implementation of National Curriculum programme roll out
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SAIA FSC Consumer SAIA FSC Consumer Education Initiative (cont)Education Initiative (cont)
Financial literacy workshops Financial literacy workshops throughoutthroughout
SA, mainly rural areas = R2 000 000 SA, mainly rural areas = R2 000 000 (FSB 5 year project – more funding (FSB 5 year project – more funding
needed!)needed!)• Roll-out in all 9 provinces commenced –
staggered• Church halls, shebeens, tribal courts,
schools, community centres, etc• Target: 10 000 in this pilot year
2004 Projects – meeting all these criteria & 2004 Projects – meeting all these criteria & objectives!!!objectives!!!
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Financial literacy Financial literacy workshopsworkshops
[PMG note: graphics not included][PMG note: graphics not included]
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Financial literacy workshopsFinancial literacy workshops
[PMG note: graphics not included][PMG note: graphics not included]
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SAIA FSC Consumer SAIA FSC Consumer Education Initiative Education Initiative
(cont)(cont)2004 Projects – meeting all these criteria & 2004 Projects – meeting all these criteria &
objectives!!!objectives!!!
Reaching commuters through Reaching commuters through Comutanet = R800 000 Comutanet = R800 000 (+ FSB contribution – R400 000)(+ FSB contribution – R400 000)
Each day, 17.1 million economically activeEach day, 17.1 million economically activeSouth Africans commute, via taxi ranks to South Africans commute, via taxi ranks to
and from their place of work.and from their place of work.
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Reaching SA’s Reaching SA’s commuterscommuters
Through
•Rank TV•2 Comutanet radio stations•Casettes in taxis•Live mobile and trailer
promotions at ranks
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Reaching SA’s Reaching SA’s commuterscommuters
Rank TV reaches Rank TV reaches
1,2 million 1,2 million
commuters per commuters per
dayday
[PMG note: graphics not [PMG note: graphics not included]included]
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Comutanet interactive Comutanet interactive promotion in action!!!!promotion in action!!!!
[PMG note: graphics not included][PMG note: graphics not included]
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SAIA FSC Consumer SAIA FSC Consumer Education InitiativeEducation Initiative
2 NB points:2 NB points:
• Product talks with people Product talks with people from target market = NBfrom target market = NB
• Privilege to see how this Privilege to see how this makes a difference in makes a difference in people’s livespeople’s lives
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Benefits of SAIA Benefits of SAIA approachapproach
– Synchronised efforts and pooling of funds maximise reach and success
– Branding is out – generic approach easy– Makes basic education logical – no
clouding with regards to specific products– FSB partnership provides further
benefits:• Holistic approach – existing strategy but able to
select relevant projects to sector• FSB resources• Assist in FSB mandate from Minister of Finance
re consumer education
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SAIA FSC Consumer SAIA FSC Consumer EducationEducation
20052005
Watch this space!!!Watch this space!!!