Date post: | 12-Feb-2017 |
Category: |
Investor Relations |
Upload: | senate-group-financial-advisors |
View: | 160 times |
Download: | 2 times |
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