INTRODUCTION TO OLD MUTUALRETAIL MASS
MARKET BROKER DISTRIBUTION
February 2013
INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
HOW DID IT ALL START
1845
Scotsman John Fairbairn founds The Mutual Life Assurance Society of the Cape of Good Hope with no initial capital other than the premiums of its first 166 policyholders.
IN UNCERTAIN TIMES
A CERTAIN FRIEND
1870
Old Mutual's emblem is designed by board chairman Charles Bell. The interlocking anchors represent mutual strength.
1902
Group life assurance is introduced. The first clients are the Cape Railways and the Johannesburg post office.
1939
Old Mutual's Art Deco head office in Cape Town opens; at 96.8 metres the tallest man-made building in Africa at the time
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
1954
Old Mutual issues its millionth policy
1,000,000
Old Mutual Group Schemes starts operations as a result of a merger between OM Voluntary Groups and the Colonial Mutual (South Africa) of Australia.
1999
Old Mutual is demutualised
Old Mutual is listed on the London, Johannesburg, Zimbabwe, Malawi and Namibia stock exchanges. Listing price is 120p (R11.25), giving the company a market capital of £3.9bn (R36.8bn)
1987 2005
Black Economic Empowerment deal introduced at Old Mutual South Africa, Nedbank and Mutual & Federal
Ralph Mupita appointed new Chief Executive Officer of Old Mutual Emerging Markets
2012
HOW DID IT ALL START
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
Providing enhanced Financial Protection to policyholders
OLD MUTUAL EMERGING MARKETS
Regio
ns
South Africa AsiaLatin America
New Markets
Rest of Africa
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
OLD MUTUAL EMERGING MARKETS -SOUTH AFRICA
Retail Mass Market
(Group Schemes)
Retail Mass Market
(Group Schemes)
MD:South Africa
Marshall Rapiya
MD:South Africa
Marshall RapiyaRetail
AffluentRetail
Affluent
Mass Foundation Cluster
Mass Foundation Cluster
CorporateCorporate
MD:Crispin Sonn
MD:Crispin Sonn
FoundationMarket
FoundationMarket
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
WHO IS OLD MUTUAL GROUP SCHEMES (RMM)?
Leading life assurance provider (business unit) within the Low and emerging-middle income market segments, based on market share, new business income and on-book clients.
Ready customer access to products through a salaried sales force, direct marketing, alliance partners, call-centre, agency franchise and broker distribution channels.
Most extensive Branch and Client Service Centre network within both the rural and urban areas of South Africa.
Highly regarded brand, based on integrity, value for money and financial soundness.
Through our primary partnership arrangements (iWyze & OM Finance) we offer a holistic client value proposition.
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
WHO IS OLD MUTUAL GROUP SCHEMES (RMM)?
Managing Director: Crispin Sonn, reporting to Marshall Rapiya (MD: OMSA)
Staff: In excess of 2 000 Administrative staff situated in MutualPark /MutualPlace and throughout the 300+ Client-service and Sales branches.
Joint ventures: Partnership agreements with iWyze (short-term) and OM Finance
Sales: Annual New Business Premium income in excess of R2.0 billion.
Each year, over 350 000 assurance benefits are sold to new and existing clients via the various RMM distribution channels.
Profit: Largest profit-contributor to OM South Africa
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
DISTRIBUTION CHANNELS
Sales Force
Foundation
Direct Marketing
AlliancePartners
BrokerDistributio
n
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BROKER DISTRIBUTION
INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH AFRICANS
Broker Distribution operations commenced in 2002
OMGS Broker Distribution operates independently from the OM Broker Division (Retail Affluent) – partly due to the separate business units and partly due to the separate market segment focuses, as such, brokers must contract independently with OMGS (even if a contract is held with OM BD)
We are a Retail business offering individual, voluntary assurance benefits to brokers servicing / wishing to service clients within the broad “Mass market” – ie personal incomes up to R20 000pm.
In excess of 4 000 broker codes on books (predominantly within the LTI Cat. B1/ B2 space)
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH AFRICANS
* Statistics South Africa - Monthly Earnings of South Africans 2010
Total employed population of South Africa
Old Mutual Retail Mass Market
Employees earning less than R20 000*
Employees earning less than R12 000*
Employees earning less than R6 500*
% falling into RMM
above…?
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
DISTRIBUTION SUPPORT - PROVIDING SUPPORT, ADVICE AND SOLUTIONS
In excess of forty Broker Consultants nationally to service brokers on a face-to-face basis
Forty Distribution Support Administrators nationally, to ensure administrative support and business efficiencies
Mutual Park-based, Contracts and Commissions Administrative support staff
Regional Sales and Distribution Support Management, to ensure focus and quality of service
Broker
BCSupport
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
INFORMATION AT YOUR FINGERTIPS - MAKING BUSINESS EASY
Average annual growth rate, since inception in 2002, in excess of 40%
Average 12-month Persistency rate in excess of 70% per annum across all broker codes
Daily SMS/E-mail new business status reports
Access to commission statements, New Business reports via the Internet (MyClient) or from Broker Consultant/Branch Admin Support personnel
Persal Q-link system accessibility for brokers, for Affordability checks
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
On average 28 000 claims are processed every month in our branches. This is more than 1.6 million clients per year.
In association with Old Mutual Finance (OMF), we are rapidly expanding our Client Service capability and footprint, by offering full client service support through the OMF offices as well. This expansion currently gives Old Mutual clients access to over 300 service points.
Our Provincial Broker Sales Managers have in excess of 80 years collective experience in Mass Market sales distribution.
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
TO SUM UP…
OM Group Schemes has 35 years experience in providing integrity-based, industry competitive assurance products which offer low entry-premiums, comprehensive benefits and solid value for money.
Non-restrictive client access to products, which the individual might otherwise, either financially or medically, not have access to.
Simple new business application, client servicing and claim procedures.
No extensive and time-consuming medical requirements (no automatic medical testing) for Risk assurance products.
Independently managed Investment portfolio for savings business.
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
TO SUM UP…
A full-house Broker support offering, from Commission Statements, New business reports, electronic notifications, business portfolio reports, Pending lapse reports to in-branch broker support facilities.
Dedicated and passionate Broker Consultants, Distribution Support staff and Distribution management, nationally, who ‘get involved’
A familiar, well-trusted brand with a history of financial soundness and integrity.
A Distribution business with a culture of openness, honesty and a ‘tell it like it is’ approach.
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INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION
PRODUCT RANGE
Education Plan
Investment Plan
Retirement plan
Funeral Plan
Accidental Death & Disability plan
Value+ Funeral Plan Range
Standard funeral plan range
Pure Life plan
Life & Disability plan
Sales by volume
Life Plans
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THANK YOU
Old Mutual is a Licensed Financial Service Provider